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AI-103 Developing AI Apps and Agents on Azure

  • Microsoft
  • 96 practice questions
  • Updated Oct 2026
  • 9 free sample questions

About this exam

AI-103 is the Microsoft exam Developing AI Apps and Agents on Azure. Practice material is available as a PDF, an interactive practice test or a bundle of both.

Exam code
AI-103
Vendor
Microsoft
Practice questions
96
Questions with an explanation
96 of 96
Free sample questions
9
Question bank last updated
13 Oct 2026

Try 2 sample questions

Taken from the free sample set for AI-103.

Question 1

You have a Microsoft Foundry project that contains a high-traffic agent.

After a recent update, operational costs increase significantly.

Monitoring confirms that the volume of user traffic to the agent remains unchanged.

You suspect that changes to the request or response characteristics are causing the increase.

You need to identify whether the additional costs are driven by the model input size, the model output size, or expanded tool usage.

Which observability capability should you use?

  1. Option A:

    evaluation metrics

  2. Option B:

    token usage

  3. Option C:

    latency

  4. Option D:

    run success rate

Show answer and explanation

Correct answer: B

The correct capability is token usage. In Microsoft Foundry observability, token consumption is the primary signal for diagnosing model-cost changes when request volume is unchanged. Token usage lets you distinguish whether costs increased because prompts became larger, retrieved or tool-provided context expanded, responses became longer, or agent execution added more model calls. Microsoft Foundry monitoring dashboards track operational metrics such as token consumption, latency, error rates, and quality scores, and the agent monitoring dashboard is specifically intended to help analyze token usage, latency, success rates, and evaluation outcomes for production traffic.

This directly matches the scenario because the issue is not more traffic, but changed request or response characteristics. Input tokens reveal whether the prompt, chat history, grounding data, or tool outputs being sent to the model increased. Output tokens reveal whether the model is generating longer completions. Expanded tool usage can also increase cost indirectly by adding more tool results, intermediate calls, and context into subsequent model requests; Foundry tracing and observability capture tool usage and token consumption for agent runs.

Evaluation metrics assess response quality and safety, not cost drivers. Latency identifies performance delays, and run success rate measures reliability. Reference topics: Microsoft Foundry observability, agent monitoring dashboard, token consumption, cost analysis, tool usage, and production monitoring.

Question 2

You have an application that processes scanned PDF invoices. The invoices have varied layouts and include multipage tables.

You have a pipeline that uses optical character recognition (OCR) and extracts totals and invoice numbers. The results are often incorrect because the document structure is ignored.

You need to implement a solution that provides OCR, layout analysis, and template-generalizing field extraction. The solution must NOT require training a custom model. The solution must minimize administrative effort.

What should you include in the solution?

  1. Option A:

    an Azure Machine Learning model

  2. Option B:

    Azure Content Understanding in Foundry Tools

  3. Option C:

    Azure Language in Foundry Tools

Show answer and explanation

Correct answer: B

The correct answer is Azure Content Understanding in Foundry Tools. The scenario requires more than basic OCR because scanned invoices have varied layouts and multipage tables. Content Understanding is designed for intelligent document processing and provides OCR, layout detection, table extraction, field extraction, confidence scores, and grounding in a managed service. Microsoft describes Content Understanding as a service that transforms unstructured content into structured outputs and supports invoice processing by extracting and validating fields from complex documents.

This also meets the requirement to avoid training a custom model. Content Understanding includes prebuilt and domain-specific analyzers, including invoice and procurement-style document processing, and Microsoft states that these analyzers provide structured extraction without custom training. It generalizes across visual template variations by using semantic document categories rather than requiring separate models per invoice layout.

Azure Machine Learning would increase administrative effort because it requires model development, training, deployment, and monitoring. Azure Language is optimized for text analytics tasks such as classification and entity extraction after text is available, but it does not provide document layout analysis or multipage table structure extraction. Reference topics: Content Understanding, intelligent document processing, OCR, layout analysis, analyzers, field schemas, and structured extraction.

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