Microsoft AI-103 Actual Free Exam Questions & Community Discussion

  • Exam Code/Number: AI-103
  • Exam Name/Title: Developing AI Apps and Agents on Azure
  • Certification Provider: Microsoft
  • Corresponding Certification: Azure AI Engineer Associate
  • Exam Questions: 69
  • Updated On: Jun 02, 2026
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.
Correct Answer:

Explanation:
type: ask_question
condition: approval == " approved "
The approval step must use type: ask_question because the workflow must pause and wait for a human response before the refund execution proceeds. Microsoft Foundry workflows support human-in-the-loop patterns where the workflow asks the user a question and awaits input before continuing; this pattern is explicitly intended for approval requests and clarifying questions. The workflow guidance also identifies workflows as declarative sequences that orchestrate agents and business logic, including branching logic and human-in-the-loop steps.
The refund execution step must use condition: approval == " approved " so that the second invocation of PaymentAgent runs only when the approval response matches the required approval value. Using true would always execute the refund, bypassing the approval control. Using propose_refund.output != null would only confirm that the first agent step produced output; it would not prove that a human approved the refund.
data_transformation is also incorrect for the approval node because it sets or parses values rather than pausing for user input. Reference topics: Microsoft Foundry workflows, human-in-the-loop workflow pattern, YAML workflow editing, agent orchestration, conditional execution, and workflow approval gates.
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?
Correct Answer: D Vote an answer
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You have a Microsoft Foundry project that contains an agent.
The agent ingests scanned PDF vendor invoices that contain tables and embedded QR codes.
The agent must preserve the PDF layout in the extracted output to ensure that downstream processing can reference sections and tables.
You plan to call Azure Content Understanding in Foundry Tools.
You need to extract content and layout elements and detect QR codes without requiring a language model deployment.
Which built-in analyzer should you use?
Correct Answer: C Vote an answer
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You have a customer support agent that uses the Microsoft Foundry Agent Service.
Sometimes, customers return to a session days later to continue the same support case, and the agent must resume with the full historical context. The agent must provide the following:
* Multi-turn continuity within the session
* Cross-session continuity for the same case
* Access to the full interaction history, including user messages, agent messages, tool calls, and tool outputs You need to ensure that the agent automatically reloads the complete history on each new turn.
What should you do?
Correct Answer: B Vote an answer
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You have a chat app in a Microsoft Foundry project and an Azure AI Search vectorized index.
You need to connect to the index to meet the following requirements:
* Complex questions must retrieve information from multiple chunks.
* Multi-turn conversations must influence retrieval planning.
* Retrievals must run in parallel to reduce latency.
Which retrieval approach should you use?
Correct Answer: A Vote an answer
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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?
Correct Answer: A Vote an answer
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You have a Microsoft Foundry project that ingests scanned PDF invoices stored in Azure Blob Storage. Each invoice contains printed line items and has a table-based layout.
Extracted results are stored as structured JSON and used as grounding data for an agent in a Retrieval Augmented Generation (RAG) solution.
You need to create a single analyzer that meets the following requirements:
* Extracts the invoice number, invoice date, vendor name, and total amount across varying templates
* Returns confidence scores so that results with confidence below 0.80 can be routed for supervisor review What should you use?
Correct Answer: B Vote an answer
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