Microsoft AI-103 real exam prep : Developing AI Apps and Agents on Azure

  • Exam Code: AI-103
  • Exam Name: Developing AI Apps and Agents on Azure
  • Updated: Oct 14, 2026
  • Q&As: 159 Questions and Answers

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Microsoft AI-103 Exam Syllabus Topics:

SectionObjectives
Topic 1: Knowledge Mining and Information Retrieval- Azure AI Search configuration
- RAG (Retrieval Augmented Generation) patterns
- Indexing and semantic search
Topic 2: Implement Natural Language Processing Solutions- Text analytics and summarization
- Translation and multilingual support
- Language understanding and intent recognition
Topic 3: Plan and Manage Azure AI Solutions- Azure AI resource provisioning and configuration
- Model selection and lifecycle management
- Responsible AI principles and governance
Topic 4: Implement Computer Vision Solutions- OCR and document intelligence
- Image classification and object detection
Topic 5: Develop Generative AI Applications and Agents- Azure OpenAI Service integration
  • 1. Function calling and tool use
    • 2. Prompt engineering and prompt flow design
      - AI agents architecture
      • 1. Agent orchestration and workflows
        • 2. Memory and state management

          Microsoft Developing AI Apps and Agents on Azure Sample Questions:

          Question #1

          You are designing a solution that will answer questions about human resources (HR) policies stored in the PDF format.
          You need to ensure that the identical answer to a specific question is returned every time. The solution must minimize development effort.
          Which service should you include in the solution?

          • A. Azure AI Language
          • B. Azure AI Document Intelligence
          • C. Azure OpenAI
          • D. Azure Machine Learning
          Reveal Solution  Discussion  0

          Correct Answer: C  🗳️

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

          Question #2

          You have a Microsoft Foundry project that contains an agent.
          You need to process mixed-format documents that contain scanned text, tables, and multicolumn layouts. The extracted content must preserve the document structure and be converted into the Markdown format for downstream reasoning.
          What should you configure first?

          • A. an Azure Language in Foundry Tools text analysis model deployment
          • B. an Azure OpenAI Responses API call that uses a multimodal model
          • C. an Azure Content Understanding in Foundry Tools analyzer
          • D. a generative chat completion request
          Reveal Solution  Discussion  0

          Correct Answer: C  🗳️

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

          Question #3

          You have a Microsoft Foundry project that serves a high-volume chat app.
          Most requests are simple FAQs, but some require advanced reasoning.
          You need to reduce costs and latency for common queries, without degrading the quality of the responses to complex questions.
          What should you do?

          • A. Route all the requests to the most capable model.
          • B. Route all the requests to a smaller model.
          • C. Use a model cascade that routes the requests to different models.
          • D. Increase the value of the max_tokens parameter for all the requests.
          Reveal Solution  Discussion  0

          Correct Answer: C  🗳️

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

          Question #4

          Hotspot Question
          You have a Microsoft Foundry project that contains an internal Q&A agent.
          Users report the following issues when they ask the agent questions:
          - An increase in the following response: "No relevant information
          found"
          - Periodic HTTP 429 rate limit exceeded errors during peak hours
          You need to identify whether each issue is caused by model unavailability, resource limits, or inference failures.
          What should you do? To answer, select the appropriate options in the answer area.
          NOTE: Each correct selection is worth one point.

          Reveal Solution  Discussion  0

          Correct Answer:

          Question #5

          Hotspot Question
          You have a Microsoft Foundry project that contains an agent named PaymentAgent.
          PaymentAgent includes a function tool that issues customer refunds by using an external API.
          You are creating a workflow in YAML.
          You need to ensure that the workflow pauses for human approval and continues with the refund step only after approval is granted.
          How should you complete the workflow definition? To answer, select the appropriate options in the answer area.
          NOTE: Each correct selection is worth one point.

          Reveal Solution  Discussion  0

          Correct Answer:

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