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

  • Exam Code: AI-103
  • Exam Name: Developing AI Apps and Agents on Azure
  • Updated: Oct 10, 2026
  • Q & A: 159 Questions and Answers

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Microsoft AI-103 Exam Overview:

Certification Vendor:Microsoft
Exam Name:Developing AI Apps and Agents on Azure
Exam Number:AI-103
Passing Score:700 / 1000
Related Certifications:Microsoft Certified: Azure AI Engineer Associate (retiring June 30, 2026)
Exam Duration:100 minutes
Available Languages:Spanish, French, Portuguese (Brazil), German, English, Japanese, Chinese (Simplified), Korean
Certificate Validity Period:1 year (renewable annually via free online assessment)
Exam Format:Scenario-based, Multiple choice, Case study, Performance-based items
Exam Price:$165 USD (varies by country/region)
Real Exam Qty:50–60
Recommended Training:Azure AI Foundry Documentation
Microsoft Learn: Develop AI Apps and Agents on Azure
Exam Registration:Pearson VUE Registration
Microsoft Certification Dashboard
Sample Questions:Free Download real AI-103 actual tests
Exam Way:Online proctored or onsite at Pearson VUE test centers
Pre Condition:No mandatory prerequisites; recommended experience: 6+ months building AI applications, proficiency in Python or C#, familiarity with Azure services and AI concepts
Official Syllabus URL:https://learn.microsoft.com/en-us/credentials/certifications/resources/study-guides/ai-103

Microsoft AI-103 Exam Syllabus Topics:

SectionWeightObjectives
Implement generative AI and agentic solutions30–35%- Build generative AI applications
  • 1. Implement function calling and tool use
  • 2. Integrate Azure OpenAI and other models
  • 3. Implement prompt engineering and optimization
  • 4. Build retrieval-augmented generation (RAG) solutions
- Design and implement intelligent agents
  • 1. Select agent architecture patterns
  • 2. Integrate agents with external systems and data sources
  • 3. Implement multi-agent workflows and orchestration
  • 4. Manage state, memory, and context
Plan and manage Azure AI solutions25–30%- Manage AI solution development lifecycle
  • 1. Configure model and agent deployments
  • 2. Integrate with CI/CD pipelines
  • 3. Monitor and maintain AI workloads
- Design Azure AI infrastructure
  • 1. Design for scalability, availability, and cost optimization
  • 2. Select appropriate Azure AI Foundry services
  • 3. Plan for security, compliance, and responsible AI
Implement information extraction and knowledge mining10–15%- Build knowledge bases and search solutions
  • 1. Design knowledge mining pipelines
  • 2. Create and manage vector indexes
  • 3. Implement Azure AI Search
- Extract structured data from documents
  • 1. Use Azure AI Document Intelligence
  • 2. Process forms, invoices, and unstructured content
Implement text and speech analysis solutions10–15%- Implement speech capabilities
  • 1. Speech translation and speaker recognition
  • 2. Speech-to-text and text-to-speech integration
- Implement natural language processing
  • 1. Perform sentiment analysis, entity recognition, and summarization
  • 2. Use Azure AI Language services
  • 3. Build conversational language understanding
Implement computer vision solutions10–15%- Implement image analysis and processing
  • 1. Extract text and structure from images
  • 2. Implement object detection and image classification
  • 3. Use Azure AI Vision services
- Build multimodal solutions
  • 1. Combine vision and language capabilities
  • 2. Process and analyze video content

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The official Microsoft Developing AI Apps and Agents on Azure outline distributes weight like this:
  • Implement computer vision solutions (10–15%)
  • Implement information extraction and knowledge mining (10–15%)
  • Plan and manage Azure AI solutions (25–30%)
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No mandatory prerequisites; recommended experience: 6+ months building AI applications, proficiency in Python or C#, familiarity with Azure services and AI concepts
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Microsoft Developing AI Apps and Agents on Azure Sample Questions:

Question #1

Case Study 1 - Contoso, Ltd
Overview
Company Information
Contoso, Ltd is a multinational retail company that builds, deploys, and manages generative AI and agent-based solutions by using Microsoft Foundry.
Existing Environment
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 AI engineering team named Agent1Dev Team to optimize and maintain existing AI solutions.
The team collaborates with solution architects, DevOps engineers, and security engineers to design, implement. monitor, and secure AI applications.
Contoso also has a team named Agent1Test Team that is responsible for validating AI 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 AI 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 Statements
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.
Requirements
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 AI 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.
Security 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 Requirements
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 recommend an invoice review solution that resolves the issue reported by the finance department. What should you include in the recommendation?

  • A. Image Analysis
  • B. Azure Content Understanding in Foundry Tools
  • C. chat completions
  • D. Azure Document Intelligence in Foundry Tools
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

You plan to configure an evaluation in Microsoft Foundry for a Retrieval Augmented Generation (RAG) chat app.
You need to provide scores for groundedness, relevance, and harmful content categories.
Which two evaluation categories can you use? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.

  • A. AI quality (NLP) metrics
  • B. AI quality (AI assisted) metrics
  • C. similarity evaluators
  • D. fluency evaluator
  • E. risk and safety metrics
Reveal Solution  Discussion  0

Correct Answer: B,E  🗳️

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Question #3

Hotspot Question
You have a Microsoft Foundry project that contains a customer support agent built by using the Foundry Agent Service.
The agent uploads user-provided screenshots to Azure Storage through a ticketing tool and receives a blob URL for additional reasoning.
You need to use image moderation during agent runs and prevent harmful content from being returned during runs. Azure AI Content Safety must access the images by using the blob URL.
The solution must follow the principle of least privilege.
What should you configure for Content Safety? 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 #4

You have a Semantic Kernel agent that provides answers to product questions.
You plan to extend the capabilities of the agent to answer questions about the status of orders.
You need to ensure that the agent answers order status questions as quickly as possible. The solution must minimize development effort.
What should you include in the solution?

  • A. an agent
  • B. a kernel
  • C. a function
  • D. a plugin
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #5

You have an Azure subscription that contains an Azure Al Foundry instance named AI1.
You have an app that automatically triages and resolves issues presented in the log files of a system.
You create an incident manager agent and a DevOps agent that collaborate to resolve the issues.
You need to ensure that the incident manager agent can assign work to the DevOps agent. The solution must minimize development effort.
What should you do?

  • A. Configure prompt flow for AI1.
  • B. Create a plugin for the incident manager agent.
  • C. Create a plugin for the DevOps agent.
  • D. Configure a connected agent for AI1.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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