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Microsoft AI-103 Exam Syllabus Topics:

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

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          2026 Reliable AI-103 Exam Materials | Valid AI-103 Sample Questions Pdf: Developing AI Apps and Agents on Azure

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          Microsoft Developing AI Apps and Agents on Azure Sample Questions (Q34-Q39):

          NEW QUESTION # 34
          Note: This section contains one or more sets of questions with the same scenario and problem. Each question presents a unique solution to the problem. You must determine whether the solution meets the stated goals. More than one solution in the set might solve the problem. It is also possible that none of the solutions in the set solve the problem.
          After you answer a question in this section, you will NOT be able to return. As a result, these questions do not appear on the Review Screen.
          You have a multimodal Al generative model that accepts image uploads and uses extracted image text to generate responses.
          You discover that users can upload unsafe images and embed hidden instructions into images to manipulate the model.
          You need to implement controls to mitigate the risk.
          Solution: You configure a prompt shield for documents.
          Does this meet the goal?

          Answer: A

          Explanation:
          The solution does not fully meet the goal. A prompt shield for documents is the correct control for the embedded-instruction portion of the scenario. Microsoft defines Prompt Shields as protection against prompt manipulation, including attacks embedded in third-party or document-like content that is supplied to a generative model. OCR-extracted text from uploaded images is untrusted contextual content, so document attack protection is appropriate for detecting hidden instructions that attempt to override the model's intended behavior.
          However, the scenario contains two separate risks: unsafe image uploads and hidden instructions embedded in images. Prompt Shields for documents address indirect prompt injection, but they do not classify or block harmful visual content in the uploaded image itself. Azure AI Content Safety image moderation is the control that scans images for harmful content categories such as sexual content, violence, hate, and self-harm with severity levels that can be used for blocking decisions.
          Therefore, document prompt shielding alone is incomplete. A complete mitigation would combine image moderation for unsafe images with Prompt Shields for document attacks, and optionally Spotlighting for lower-trust third-party content. Reference topics: Content Safety image moderation, Prompt Shields, document attacks, indirect prompt injection, and multimodal safety.


          NEW QUESTION # 35
          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

          Answer:

          Explanation:

          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.


          NEW QUESTION # 36
          You need to configure Agent1 to meet the security and compliance requirements.
          What should you use?

          Answer: A


          NEW QUESTION # 37
          You have a Microsoft Foundry project.
          You plan to build a customer support solution that contains an agent. The solution must meet the following requirements:
          * Provide accurate, context-aware responses grounded in internal product documentation stored in Azure AI Search.
          * Require deep, multi-step reasoning across long contexts.
          * Generate detailed natural language responses.
          Which type of model should you use to power the agent?

          Answer: B

          Explanation:
          The correct model type is a large language model (LLM) . The scenario requires an agent that can reason over retrieved documentation, synthesize context-aware answers, and generate detailed natural language responses.
          Microsoft Foundry RAG guidance defines Retrieval Augmented Generation as a pattern that combines search with large language models so responses are grounded in organizational data, which directly matches the use of Azure AI Search for internal product documentation.
          An LLM is also the correct fit for deep, multi-step reasoning across long contexts. Azure AI Search agentic retrieval guidance states that complex chat and agent scenarios use an LLM to break a user query into smaller focused subqueries for better coverage over indexed content. Microsoft also describes Azure AI Search as a way to ground agents and chatbots in proprietary enterprise data for accurate, context-aware responses.
          A multimodal model is unnecessary because the requirements are text-focused, not image, audio, or video based. A key phrase extraction model performs narrow text analytics and cannot generate detailed answers.
          An SLM may reduce cost and latency, but the stated need for deep reasoning and long-context synthesis favors an LLM. Reference topics: Microsoft Foundry RAG, Azure AI Search grounding, agentic retrieval, and model selection for generative AI agents.


          NEW QUESTION # 38
          You have a Microsoft Foundry project that contains a high-traffic agent.
          After a recent update, operational costs increase significantly.
          Monitoring confirms that the volume of user traffic to the agent remains unchanged.
          You suspect that changes to the request or response characteristics are causing the increase.
          You need to identify whether the additional costs are driven by the model input size, the model output size, or expanded tool usage.
          Which observability capability should you use?

          Answer: A

          Explanation:
          The correct capability is token usage . In Microsoft Foundry observability, token consumption is the primary signal for diagnosing model-cost changes when request volume is unchanged. Token usage lets you distinguish whether costs increased because prompts became larger, retrieved or tool-provided context expanded, responses became longer, or agent execution added more model calls. Microsoft Foundry monitoring dashboards track operational metrics such as token consumption, latency, error rates, and quality scores, and the agent monitoring dashboard is specifically intended to help analyze token usage, latency, success rates, and evaluation outcomes for production traffic.
          This directly matches the scenario because the issue is not more traffic, but changed request or response characteristics. Input tokens reveal whether the prompt, chat history, grounding data, or tool outputs being sent to the model increased. Output tokens reveal whether the model is generating longer completions.
          Expanded tool usage can also increase cost indirectly by adding more tool results, intermediate calls, and context into subsequent model requests; Foundry tracing and observability capture tool usage and token consumption for agent runs.
          Evaluation metrics assess response quality and safety, not cost drivers. Latency identifies performance delays, and run success rate measures reliability. Reference topics: Microsoft Foundry observability, agent monitoring dashboard, token consumption, cost analysis, tool usage, and production monitoring.


          NEW QUESTION # 39
          ......

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