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Microsoft AI-103 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Plan and manage Azure AI solutions | 25-30% | - Manage AI solution lifecycle
|
| Implement text analysis and information extraction solutions | 10-15% | - Analyze and extract information
|
| Implement agentic solutions | 20-25% | - Manage agent operations
|
| Implement computer vision solutions | 10-15% | - Analyze visual content
|
| Implement generative AI solutions | 25-30% | - Develop generative AI applications
|
Microsoft Developing AI Apps and Agents on Azure Sample Questions:
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. Configure output=figures when you analyze the PDF.
- B. Configure content=markdown when you analyze the document.
- C. Set the output_content_format=ContentFormat.MARKDOWN value.
- D. Increase the confidence threshold.
Correct Answer: C 🗳️
Explanation: Only visible for PracticeVCE members. You can sign-up / login (it's free).
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.
Correct Answer:

Explanation:
Box 1: The human-in-the-loop template that pauses execution of the workflow for input Human-in-the-loop template is correct. This pattern allows the system to run automatically for predictable, node-by-node agent execution while explicitly pausing the workflow when a high-risk condition is met to wait for human intervention.
Box 2: Add a Condition statement
Condition statement is correct. You must evaluate the risk level (low vs. high) before deciding whether to finalize the policy. A condition node checks the risk score output from RiskReviewer. If it is low, it routes to auto-finalization. If it is high, it routes to an approval step.
Reference:
https://techcommunity.microsoft.com/blog/azure-ai-foundry-blog/building-human-in-the-loop-ai-workflows-with-microsoft-agent-framework/4460342
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.
Correct Answer:

You have a Microsoft Foundry project that serves a high-volume chat app.
Most requests are simple FAQs, but some require advanced reasoning.
You need to reduce costs and latency for common queries, without degrading the quality of the responses to complex questions.
What should you do?
- A. Route all the requests to the most capable model.
- B. Use a model cascade that routes the requests to different models.
- C. Increase the value of the max_tokens parameter for all the requests.
- D. Route all the requests to a smaller model.
Correct Answer: B 🗳️
Explanation: Only visible for PracticeVCE members. You can sign-up / login (it's free).
Hotspot Question
You are creating an enrichment pipeline that will use Azure AI Search. The knowledge store contains unstructured JSON data and the text from scanned PDF documents.
Which projection type should you use for each data type? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Correct Answer:

Explanation:
Box 1: Object projection
For the unstructured JSON data, you must use object projection, and for the extracted text data from the scanned PDF documents, you must use file projection.
Object Projection: Projects your data as a full JSON representation. It is ideal for maintaining the original structure alongside any applied AI enrichments within a single JSON document inside Azure Blob Storage.
Box 2: File projection
File Projection: Captures the binary or image extraction layer required during Optical Character Recognition (OCR) processing. It isolates and outputs raw text and graphic details directly from unstructured physical binary files into a designated container Reference:
https://learn.microsoft.com/en-us/azure/search/cognitive-search-concept-image-scenarios

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