Try and practice the latest Microsoft : AI-103 real questions & answers

Updated: Jul 15, 2026

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Microsoft Developing AI Apps and Agents on Azure Sample Questions:

1. 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.


2. Hotspot Question
You have a Microsoft Foundry project that contains an agent.
The agent accepts user-uploaded screenshots and uses a multimodal chat model.
Some screenshots contain potentially malicious embedded text.
You need to prevent a prompt injection attack and ensure that third-party content is treated as lower trust.
How should you configure prompt shields for document attacks? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.


3. 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?

A) Enable memory summarization on the agent definition to persist the context automatically.
B) Create and reuse a conversation by storing the conversation's ID and supplying the ID on subsequent requests.
C) Persist only the final model response stored in the client application and prepend the response to future prompts.


4. A customer support agent must answer from an internal knowledge base that is updated weekly with new product documentation, and its answers must always reflect the latest content. Which approach should you implement?

A) Fine-tune the base model on the new documents every week
B) Apply Direct Preference Optimization (DPO) to the documents
C) Raise the model temperature to improve recall of recent facts
D) Implement retrieval-augmented generation (RAG) over an index of the documents


5. You are building an app by using the Semantic Kernel.
You need to include complex objects in the prompt templates of the app. The solution must support objects that contain subproperties.
Which two prompt templates can you use? Each correct answer presents a complete solution.
NOTE: Each correct selection is worth one point.

A) YAML
B) Semantic Kernel
C) Liquid
D) Handlebars
E) JSONL


Solutions:

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

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