Microsoft AI-103 - Developing AI Apps and Agents on Azure
- Exam Code: AI-103
- Exam Name: Developing AI Apps and Agents on Azure
- Updated: Nov 04, 2026
- Q & A: 152 Questions and Answers
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| Section | Objectives |
|---|---|
| Plan and Manage Azure AI Solutions | - Azure AI resource provisioning and configuration - Responsible AI principles and governance - Model selection and lifecycle management |
| Develop Generative AI Applications and Agents | - Azure OpenAI Service integration
|
| Knowledge Mining and Information Retrieval | - RAG (Retrieval Augmented Generation) patterns - Indexing and semantic search - Azure AI Search configuration |
| Implement Computer Vision Solutions | - OCR and document intelligence - Image classification and object detection |
| Implement Natural Language Processing Solutions | - Text analytics and summarization - Language understanding and intent recognition - Translation and multilingual support |
You have a Microsoft Foundry project that contains an agent. The agent uses Azure Speech in Foundry Tools.
You fine-tune a baseline speech to text model for the en-us locale and publish the model.
The agent calls the Speech to text REST API and returns an error message indicating that the project ID is invalid.
You need to set the project property to the correct ID.
To what should you set the project property?
Correct Answer: D 🗳️
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You are building an image-sharing app that must prevent users from sharing sexually explicit images. The solution must minimize development effort.
Correct Answer: D 🗳️
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You need to configure an indexing pipeline for Agent1 to retrieve the relevant product information in storage1. The solution must meet the technical requirement.
Which two built-in skills should you use? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
Correct Answer: A,C 🗳️
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You have a Microsoft Foundry project that contains two agents named PolicyWriter and RiskReviewer.
PolicyWriter generates draft updates for customer policies, and RiskReviewer reviews the drafts. In the visual builder, you need to create a workflow that meets the following requirements:
* Finalizes low-risk updates without manual intervention
* Ensures predictable execution across the agents
Correct Answer:

Explanation:
* Orchestration pattern: The sequential template that passes outputs node-by-node
* Approval checkpoints: Add a condition statement
Use the sequential orchestration template because the agents must execute in a fixed, predictable order.
PolicyWriter first generates the proposed policy update, and its output is then passed directly to RiskReviewer. Microsoft defines the sequential pattern as passing the result from one agent to the next in a defined order, making it appropriate for deterministic, multistage processing. The group-chat pattern would allow control to move dynamically between agents, which would reduce execution predictability.
After RiskReviewer returns a structured risk classification, add a condition statement that evaluates the result.
The low-risk branch can proceed directly to the finalization action without requesting human input. A separate higher-risk branch can route to an approval step, such as an Ask a question node. Adding an Ask a question node without conditional branching would pause every workflow execution, including low-risk updates, and therefore would not satisfy the automation requirement. Microsoft Foundry workflows support if/else branching and condition expressions for selecting the next action.
Study Guide alignment: implement orchestrated multi-agent solutions and build autonomous or semiautonomous workflows with safeguards and approval-flow controls .
Topic 1, Case Study Contoso, Ltd
Overview
Contoso, Ltd is a multinational retail company that builds, deploys, and manages generative Al and agent- based solutions by using Microsoft Foundry.
Identity Environment:
Contoso uses Microsoft Entra ID for identity management, authentication, and authorization capabilities that enable agents to access organizational resources and services.
Contoso recently formed a new Al engineering team named Agent1Dev Team to optimize and maintain existing Al solutions.
The team collaborates with solution architects, DevOps engineers, and security engineers to design, implement, monitor, and secure Al applications.
Contoso also has a team named Agent1Test Team that is responsible for validating Al solutions before the solution deployments.
Generative Environment:
Contoso has a Microsoft Foundry deployment that contains two projects named Project1 and Project2.
Project1
Project1 contains a customer support agent named Agent1 that assists customers with product inquiries and troubleshooting requests.
Agent1 has the following configurations:
* Agent1 uses a base model deployment.
* A safety evaluation pipeline is NOT enabled.
* Tool invocation approval workflows are NOT enabled.
* Conversation memory constraints are NOT configured.
Agent1 interacts with customers by using digital support channels and answers general questions about Contoso products.
Project1 is deployed to an Azure region located in the European Union (EU).
Agent1Dev Team will use Project1 to optimize and maintain Agent1.
Project2
Project2 contains a deployed video generation model. The marketing department at Contoso has access to Project2 and plans to use the model to develop a video creation solution.
Development of the solution is incomplete.
Data Environment:
Contoso stores product-related information in Azure resources that support Al applications.
The Azure environment contains an Azure Blob Storage account named storage1 that stores product detail sheets for all the Contoso products.
The product sheets include specifications, feature descriptions, and product support information that Agent1 can use to answer customer questions. The product sheets are stored in the PDF format.
Problem Statement:
Contoso identifies the following issues:
* Agent1 has only general knowledge of the Contoso products.
* A recent chat interaction with Agent1 was analyzed for sentiment. The results of the analysis have NOT been processed yet.
* Agent1 does NOT use the detailed product information in the product sheets stored in storage1 when responding to customer questions.
* The finance department at Contoso reports that vendor invoices must be reviewed manually to ensure that the invoices match the terms defined in the vendor contracts. The invoices contain tables, logos, and varied layouts that make the documents difficult to process consistently.
Requirement:
Planned Changes:
Contoso plans to implement the following changes:
* Implement a solution for Project1 that analyzes the vendor invoices by evaluating both the visual layout and the textual content of the invoices, so that the invoice details can be verified against the vendor contract terms.
* Update the base model deployment used by Agent1 and standardize the model version to ensure continuity and consistent responses.
* Enable Agent1 to retrieve and use the detailed product information from the product sheets stored in storage1.
* Implement an indexing solution for the product sheets that Agent1 can use to answer customer questions.
* Complete the development of the video creation solution.
Technical Requirements:
Contoso identifies the following technical requirements:
* The model deployment used by Agent1 must support scalable, high-throughput generative Al workloads and dynamically scale to handle variable customer support traffic, without requiring reserved throughput capacity.
* The product sheets must be processed by using an indexing pipeline that enables semantic and vector search, so that Agent1 can retrieve the relevant product information.
* Responses generated by using the product sheet information must be relevant, complete, and accurate.
* Agent1 must be able to use the product sheets to answer natural language questions about product details.
* The model version used by Agent1 must remain consistent to ensure stable responses.
* The data processed by the model must remain within the EU.
Safety and Compliance Requirements:
Contoso identifies the following security and compliance requirements:
* API keys must NOT be used to access Foundry-deployed models.
* Access to the Azure resources must follow the principle of least privilege.
* The developers at Contoso must authenticate to Microsoft Foundry resources by using Microsoft Entra authentication.
* Access to Project1 must be assigned to the members of Agent1Dev Team by using a security group named SC_Agent1_Dev.
* Access to Project1 must be assigned to the members of Agent1Test Team by using a security group named SC_Agent1_Test.
* Agent1 must never reveal customer information, even if a document that contains customer data is added erroneously to the product sheet repository in storage1.
* The product sheets might contain images that include embedded text. Agent1 must be protected from malicious instructions potentially hidden within the images.
Business Information:
Contoso identifies the following business requirements:
* Users that interact with Agent1 must have a personalized experience in future interactions, including the ability for Agent1 to retain conversation context and recall relevant information from previous interactions.
* Agent1 must answer questions only about the products sold by Contoso.
You need to optimize content filter configurations by running tests on sample questions.
Solution: From Content Safety Studio, you use the Moderate text content feature to run the tests.
Does this meet the requirement?
Correct Answer: B 🗳️
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