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 14, 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.
You need to enable long-term memory to ensure that the agent can recall user preferences across separate conversations. Stored memories must be isolated per authenticated user without the client application manually generating user IDs.
How should you complete the Python code? To answer, drag the appropriate values to the correct targets.
Each value may be used once, more than once, or not at all.
NOTE: Each correct selection is worth one point.


2. You have a Microsoft Foundry project named Project1.
Project1 contains an application that processes PDF vendor invoices.
You need to configure Azure Document Intelligence in Foundry Tools to generate a Markdown output that preserves the sections and table structure of the PDFs. The solution must minimize development effort.
What should you do?

A) Increase the confidence threshold.
B) Set the output_content_format=ContentFormat. MARKDOWN value.
C) Configure output=figures when you analyze the PDF.
D) Configure content=markdown when you analyze the document.


3. 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 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. You have a Microsoft Foundry project that contains an agent.
The agent uses a knowledge source built from documents stored in Azure Blob Storage. The documents include digitally scanned PDFs that contain multipage tables.
You have an ingestion job that extracts only plain text, causing loss of table structure, headings, and page- number metadata.
Users frequently ask questions that require the retrieval of specific table rows across the pages.
You need to configure an ingestion job for a Retrieval Augmented Generation (RAG) pipeline that performs optical character recognition (OCR) on scanned PDFs, preserves tables and headings as structure-aware chunks, and stores page-number metadata with each chunk.
How should you configure the ingestion job?

A) Use basic parsing and fixed-size chunking.
B) Use OCR and page-level chunking.
C) Use page-level OCR extraction and store each page as a single chunk.
D) Use advanced data parsing to reingest the documents.


5. You have a Microsoft Foundry project that contains an agent. The agent has a Model Context Protocol (MCP) tool that queries a knowledge base stored in Azure AI Search.
Some agent runs return answers from the base model without invoking the knowledge base, which results in responses without grounded citations.
You are provided with the following code snippet that runs the agent.
run = project_client.agents.runs.create_and_process(
thread_id=thread.id,
agent_id=agent.id,
)
You need to add the correct tool_choice parameter to the code to deterministically force the agent to invoke the MCP tool on each run.
What should you add?

A) tool_choice ={ " type " : " mcp " }
B) tool_choice={ " type " : " knowledge_base " }
C) tool_choice={ " auto " }
D) tool_choice={ " required " }


Solutions:

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

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