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Microsoft AI-103 Exam Syllabus Topics:

SectionObjectives
Plan and Manage Azure AI Solutions- Responsible AI principles and governance
- Azure AI resource provisioning and configuration
- Model selection and lifecycle management
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. Memory and state management
        • 2. Agent orchestration and workflows
          Implement Computer Vision Solutions- Image classification and object detection
          - OCR and document intelligence
          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
          - Language understanding and intent recognition
          - Text analytics and summarization

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          Microsoft Developing AI Apps and Agents on Azure Sample Questions (Q23-Q28):

          NEW QUESTION # 23
          You have a Python application named App1 that integrates with a Microsoft Foundry project named Project1.
          You need to ensure that App1 meets the following requirements:
          * Authenticates by using a Microsoft Entra managed identity
          * Sends prompts to a deployed model by using the Azure OpenAI Responses API How should you complete the Python code? To answer, select the appropriate options in the answer area.
          NOTE: Each correct selection is worth one point.

          Answer:

          Explanation:

          Explanation:
          credential = DefaultAzureCredential
          response = openai_client.responses.create
          The correct authentication class is DefaultAzureCredential because the requirement is Microsoft Entra-based authentication, and this credential supports managed identity in hosted Azure environments. The Microsoft Foundry quickstart for Python shows the project client being created with AIProjectClient (endpoint=PROJECT_ENDPOINT, credential=DefaultAzureCredential()), which enables the Foundry SDK to authenticate without using API keys or embedded secrets. The same guidance shows creating an OpenAI- compatible client from the project by calling project.get_openai_client().
          The correct Responses API method is create because the application must send a new prompt to the deployed model and receive generated output. Microsoft's Foundry quickstart demonstrates the exact pattern: response
          = openai.responses.create(model= " gpt-5-mini " , input= " ... " ), followed by reading response.output_text.
          The retrieve operation is used to fetch an existing response, not submit a new inference request, and compact is not the correct method for generating a model response. AzureKeyCredential would violate the Microsoft Entra managed identity requirement, while ClientSecretCredential uses an application secret rather than managed identity. Reference topics: Microsoft Foundry SDK, AIProjectClient, Microsoft Entra authentication, DefaultAzureCredential, and Azure OpenAI Responses API.


          NEW QUESTION # 24
          Hotspot Question
          You have a Microsoft Foundry project that contains two agents named PolicyWriter and RskReviewer.
          PolicyWriter generates daft updates for customer polices, 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
          - Requires user approval for highs updates
          What should you configure? To answer, select the appropriate options in the answer area.
          NOTE: Each comet selection is worth one point.

          Answer:

          Explanation:

          Explanation:
          Box 1: The human-in-the-loop template that pauses execution of the workflow for input Human-in-the-loop template is correct. This pattern allows the system to run automatically for predictable, node-by-node agent execution while explicitly pausing the workflow when a high-risk condition is met to wait for human intervention.
          Box 2: Add a Condition statement
          Condition statement is correct. You must evaluate the risk level (low vs. high) before deciding whether to finalize the policy. A condition node checks the risk score output from RiskReviewer. If it is low, it routes to auto-finalization. If it is high, it routes to an approval step.
          Reference:
          https://techcommunity.microsoft.com/blog/azure-ai-foundry-blog/building-human-in-the-loop-ai-workflows-with-microsoft-agent-framework/4460342


          NEW QUESTION # 25
          You are building an app by using the Semantic Kernel.
          You need to include complex objects in the prompt templates of the app. The solution must support objects that contain subproperties.
          Which two prompt templates can you use? Each correct answer presents a complete solution.
          NOTE: Each correct selection is worth one point.

          Answer: A,C

          Explanation:
          Semantic Kernel provides support for the following template formats:
          semantic-kernel - Built-in Semantic Kernel format.
          handlebars - Handlebars template format.
          liquid - Liquid template format
          The Semantic Kernel prompt template language is a simple way to define and compose AI functions using plain text. You can use it to create natural language prompts, generate responses, extract information, invoke other prompts or perform any other task that can be expressed with text.
          Reference:
          https://learn.microsoft.com/en-us/semantic-kernel/concepts/prompts/prompt-template-syntax


          NEW QUESTION # 26
          You need to configure Agent1 to meet the security and compliance requirements.
          What should you use?

          Answer: C


          NEW QUESTION # 27
          You have a Microsoft Foundry project that uses Azure Al Search to ground an agent in internal documentation.
          After a recent content update, users report that the agent ' s answers have become less accurate.
          You need to identify whether the retrieved content is negatively influencing the model ' s generated responses.
          Which observability signal should you review?

          Answer: B

          Explanation:
          The correct observability signal is B. groundedness evaluation metrics . In a RAG solution, the key diagnostic question is whether the generated answer is supported by the retrieved context. Microsoft Foundry' s built-in evaluator reference defines Groundedness as the metric that measures how grounded the response is in the retrieved context, with scoring that indicates whether the model's claims are supported by the provided source material.
          This matches the issue after a content update. If retrieved chunks are stale, misleading, incomplete, or poorly aligned with the user query, groundedness results can show that generated responses are not reliably supported by the retrieved documentation. The RAG evaluator guidance explains that groundedness focuses on whether the response avoids content outside the grounding context, while other process metrics such as retrieval evaluate how relevant the retrieved chunks are. Latency traces are useful for performance troubleshooting, not response accuracy. Indexer status can reveal ingestion failures, but it does not show whether retrieved content is influencing generated answers negatively. Prediction drift is a model monitoring concept and is not the primary signal for RAG grounding quality. Reference topics: Microsoft Foundry observability, RAG evaluators, groundedness, retrieved context, and response quality evaluation.


          NEW QUESTION # 28
          ......

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