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

AI-103 real exams

Exam Code: AI-103

Exam Name: Developing AI Apps and Agents on Azure

Updated: Jun 03, 2026

Q & A: 69 Questions and Answers

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Microsoft Developing AI Apps and Agents on Azure Sample Questions:

1. You have a Microsoft Foundry project that contains an agent.
The agent uses tools to retrieve internal content and call external APIs. The agent is configured to let the model decide when to call the tools.
You need to publish the agent for a compliance workflow. The solution must meet the following requirements:
* Each workflow run must include a retrieval step before generating a response.
* Tool calls must authenticate by using the published agent's own identity.
* Tool access must use an identity isolated from other project resources.
* Tool access must support audit tracing.
What should you do? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.


2. You have a Microsoft Foundry project that contains an internal Q & A agent.
Users report the following issues when they ask the agent questions:
* An increase in the following response: "No relevant information found"
* Periodic HTTP 429 rate limit exceeded errors during peak hours
You need to identify whether each issue is caused by model unavailability, resource limits, or inference failures.
What should you do? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.


3. You need to configure Agent1 to answer customer questions about only the Contoso products. The solution must meet the business requirements.
What should you do?

A) Apply top-p sampling.
B) Increase the value of the temperature parameter.
C) Modify the system message instructions.
D) Add few-shot examples.


4. You have a Microsoft Foundry project that contains a prompt agent used by a customer support web app.
The agent is invoked from a Python service that does NOT run in the Foundry portal.
You need to implement end-to-end tracing to capture latency breakdowns and exceptions across agent runs.
Which two components can you use? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.

A) Microsoft Sentinel
B) a Log Analytics workspace
C) the Azure Monitor Agent
D) OpenTelemetry
E) Application Insights


5. You have a Microsoft Foundry project named Project1 that contains the following:
* An OpenAPI tool that calls an external API
* A project connection named Connection1 that stores the API key of the external API When an agent calls the OpenAPI tool, the API returns a 401 unauthorized error, and traces show that the API key header is NOT being sent.
You need to ensure that the OpenAPI tool automatically includes the API key from Connection1 on all requests.
What should you do?

A) Connect the tool to Connection1.
B) Add the API key header manually to the OpenAPI specification.
C) Configure the tool to use the default connection of Project1.
D) Enable identity passthrough so that the tool uses the Microsoft Entra token of the caller.


Solutions:

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

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