Microsoft Developing AI Apps and Agents on Azure : AI-103

  • Exam Code: AI-103
  • Exam Name: Developing AI Apps and Agents on Azure
  • Updated: Sep 09, 2026     Q & A: 159 Questions and Answers

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About Microsoft AI-103 Exam

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Microsoft AI-103 Exam Syllabus Topics:

SectionObjectives
Develop Generative AI Applications and Agents- Azure OpenAI Service integration
  • 1. Prompt engineering and prompt flow design
    • 2. Function calling and tool use
      - AI agents architecture
      • 1. Memory and state management
        • 2. Agent orchestration and workflows
          Implement Computer Vision Solutions- Image classification and object detection
          - OCR and document intelligence
          Plan and Manage Azure AI Solutions- Azure AI resource provisioning and configuration
          - Model selection and lifecycle management
          - Responsible AI principles and governance
          Knowledge Mining and Information Retrieval- RAG (Retrieval Augmented Generation) patterns
          - Indexing and semantic search
          - Azure AI Search configuration
          Implement Natural Language Processing Solutions- Translation and multilingual support
          - Text analytics and summarization
          - Language understanding and intent recognition

          Microsoft Developing AI Apps and Agents on Azure Sample Questions:

          Question #1

          You are creating an image-editing workflow in a Microsoft Foundry project.
          The workflow must meet the following requirements:
          - Ensure that background objects can be removed by applying a mask-
          based inpainting edit.
          - Preserve the original lighting and style of the edited images.
          - Use the built-in image editing controls, NOT a custom model.
          You need to ensure that image edits apply exclusively inside the masked area.
          How should you configure the workflow?

          • A. Set generation mode to image_variation and provide the original image as a reference.
          • B. Enable mask_inpainting and supply both the input image and a mask indicating which part of the image to modify.
          • C. Enable text_to_image mode and a prompt describing the desired background removal.
          • D. Enable image_to_image mode and a high-strength value to regenerate the full image based on the prompt.
          Answer: B

          Explanation: Only visible for PracticeTorrent members. You can sign-up / login (it's free).

          Question #2

          You have a Microsoft Foundry project that contains three agents as shown in the following table.

          You need to orchestrate the agents to ensure that the customer requests meet the following requirements:
          - Support a deterministic, step-based process that uses conditional
          branching and shared state across the agents.
          - Optionally trigger a ticket action based on the triage result.
          The solution must minimize development effort.
          What should you include in the solution?

          • A. a workflow
          • B. a multi-agent group chat session
          • C. threads and runs without a workflow
          • D. separate agent runs coordinated in the application code
          Answer: A

          Explanation: Only visible for PracticeTorrent members. You can sign-up / login (it's free).

          Question #3

          Hotspot Question
          You have an Azure subscription.
          You need to create a new resource that will generate fictional stores in response to user prompts.
          The solution must ensure that the resource uses a customer-managed key to protect data.
          How should you complete the script? To answer, select the appropriate options in the answer area.
          NOTE: Each correct selection is worth one point.

          Answer:


          Explanation:
          Box 1: OpenAI
          To generate fictional stores in response to user prompts, you need a generative AI model (such as GPT-3.5 or GPT-4). The Azure OpenAI service natively supports this generative capability and allows you to secure your deployed models and data using customer-managed keys (CMK).
          Box 2: --assign-identity
          When defining the Azure Key Vault resource script to enable customer-managed keys (CMK), you must use --assign-identity (or assign-identity).
          Reference:
          https://learn.microsoft.com/en-us/azure/search/search-how-to-managed-identities

          Question #4

          You are developing a new sales system that will process user-generated video and text from a public-facing website.
          You plan to notify users that their data has been processed by the sales system.
          Which responsible AI principle does this help meet?

          • A. inclusiveness
          • B. fairness
          • C. transparency
          • D. reliability and safety
          Answer: C

          Explanation: Only visible for PracticeTorrent members. You can sign-up / login (it's free).

          Question #5

          Drag and Drop Question
          You have a web app that uses Azure AI Search.
          When reviewing activity you see greater than expected search query volumes. You suspect that the query key is compromised.
          You need to prevent unauthorized access to the search endpoint and ensure that users only have read only access to the documents collection. The solution must minimize app downtime.
          Which three actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.

          Answer:


          Explanation:
          Enforces Read-Only Permissions: Query keys are specifically designed to provide read-only access to the documents collection of an index. Admin keys provide full read-write administrative privileges and should never be distributed to consumer-facing applications.
          Zero Downtime: Azure AI Search lets you generate up to 50 individual query keys. Creating a new one allows the app to stay online throughout the entire key rotation process Reference:
          https://learn.microsoft.com/en-us/azure/search/search-security-api-keys

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