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Last Updated: Aug 06, 2026

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Microsoft AI-103 Exam Syllabus Topics:

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

          Microsoft Developing AI Apps and Agents on Azure Sample Questions:

          1. 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.


          2. Hotspot Question
          You have a Microsoft Founcy project that contains a Retrieval Augmented Generation (RAG) solution.
          You need to run a pre-production evaluation by using labeled CSV dataset that contains the query, context, response and ground truth. The evaluation must measure the following:
          - Whether responses address the user query
          - Whether responses are supported by the provided context
          - Whether responses contain sensitive or proprietary information
          Which AI quality evaluation metrics should you use? To answer, select the appropriate options in the answer area.
          NOTE: Each correct selection is worth one point.


          3. Hotspot Question
          Your company is piloting a customer support agent in a Microsoft Foundry project name Project1.
          Project1 is connected to an existing Application Insights resource, and the company's support team reviews runs in the Traces tab.
          The Foundry Agent Service is configured to perform the following actions:
          - Retrieve the Application Insights connection string by calling
          project_client.telemetry.get_application_insights_connection_string().
          - Call configure_azure_monitor(connection_string=...) to enable
          telemetry.
          A separate LangChain service is configured to use OpenTelemetry and has the following configurations:
          - Uses AzureAIOpenTelemetryTracer(connection_string=...,
          enable_content_recording=False)
          - Passes the tracer by using config={"callbacks":[azure_tracer]}
          Company policy has the following requirements:
          - Telemetry from LangChain and OpenTelemetry must be distinguishable
          within the same Application Insights resource.
          - Secrets and credentials must NOT be stored in prompts, tool
          arguments, or span attributes.
          For each of the following statements, select Yes if the statement is true. Otherwise, select No.
          NOTE: Each correct selection is worth one point.


          4. 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.


          5. Hotspot Question
          You have a Microsoft Foundry project that contains a deployed chat model.
          You have a Python service that sends API requests to the model. The service is integrated with an automated validation system that compares generated outputs against approved response patterns.
          Stakeholders report that small wording differences are causing validation mismatches.
          You need to update the request parameters to improve output stability. The solution must maximize reasoning quality.
          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.


          Solutions:

          Question # 1
          Answer: Only visible for members
          Question # 2
          Answer: Only visible for members
          Question # 3
          Answer: Only visible for members
          Question # 4
          Answer: Only visible for members
          Question # 5
          Answer: Only visible for members

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