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

  • Exam Code: AI-103
  • Exam Name: Developing AI Apps and Agents on Azure
  • Updated: Jul 22, 2026     Q & A: 107 Questions and Answers

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Microsoft AI-103 Exam Syllabus Topics:

SectionObjectives
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 Natural Language Processing Solutions- Text analytics and summarization
          - Language understanding and intent recognition
          - Translation and multilingual support
          Plan and Manage Azure AI Solutions- Azure AI resource provisioning and configuration
          - Responsible AI principles and governance
          - Model selection and lifecycle management
          Implement Computer Vision Solutions- OCR and document intelligence
          - Image classification and object detection
          Knowledge Mining and Information Retrieval- Indexing and semantic search
          - RAG (Retrieval Augmented Generation) patterns
          - Azure AI Search configuration

          Microsoft Developing AI Apps and Agents on Azure Sample Questions:

          1. 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 AI 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 protected material detection.
          Does this meet the goal?

          A) Yes
          B) No


          2. 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 AI 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?

          A) Yes
          B) No


          3. 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.

          A) JSONL
          B) Handlebars
          C) Liquid
          D) YAML
          E) Semantic Kernel


          4. You have an Azure subscription that contains an Azure OpenAI resource.
          You deploy the GPT-4 model to the resource.
          You need to ensure that you can upload files that will be used as grounding data for the model.
          Which two types of resources should you create? Each correct answer presents part of the solution.
          NOTE: Each correct selection is worth one point.

          A) Azure AI Document Intelligence
          B) Azure SQL
          C) Azure AI Search
          D) Azure AI Bot Service
          E) Azure Blob Storage


          5. Hotspot Question
          You have a Microsoft Foundry project that contains an agent.
          The agent accepts user-uploaded screenshots and uses a multimodal chat model.
          Some screenshots contain potentially malicious embedded text.
          You need to prevent a prompt injection attack and ensure that third-party content is treated as lower trust.
          How should you configure prompt shields for document attacks? To answer, select the appropriate options in the answer area.
          NOTE: Each correct selection is worth one point.


          Solutions:

          Question # 1
          Answer: B
          Question # 2
          Answer: A
          Question # 3
          Answer: B,C
          Question # 4
          Answer: C,E
          Question # 5
          Answer: Only visible for members

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