AI-103, Microsoft Certification

AI-103: Develop AI Apps and Agents on Azure – Practice Exam #3 (30 questions with answers)

30 Practice Questions with Answers and Explanations

Question 1

You are developing a chatbot that must answer questions using only approved internal company documents.

Which technique should you implement to reduce hallucinations?

A. Increasing temperature settings
B. Grounding with retrieval
C. Removing semantic ranking
D. Disabling vector search

Answer

B. Grounding with retrieval

Explanation

Grounding uses trusted enterprise data retrieved at runtime to provide accurate and context-aware responses.

Question 2

You need to analyze video footage to detect and classify objects such as forklifts and pallets.

Which capability should you use?

A. Named Entity Recognition
B. OCR
C. Object detection
D. Text summarization

Answer

C. Object detection

Question 3

A company wants to preserve document structure, headings, bullet lists, and tables for downstream AI reasoning.

Which output format is MOST appropriate?

A. TIFF
B. CSV
C. Binary encoding
D. Markdown

Answer

D. Markdown

Question 4

MULTIPLE ANSWER — Which are common stages in a RAG ingestion pipeline? (Choose THREE)

A. VPN configuration
B. Embedding generation
C. Vector indexing
D. Document chunking
E. DHCP reservation

Answer

B. Embedding generation
C. Vector indexing
D. Document chunking

Question 5

You need an AI system to identify customer emotions within support conversations.

Which capability should you implement?

A. Sentiment analysis
B. Image segmentation
C. OCR preprocessing
D. Face verification

Answer

A. Sentiment analysis

Question 6

MATCHING — Match the service to the correct functionality.

ServiceFunctionality
Azure AI Search?
Azure AI Vision?
Azure OpenAI Service?

Options:

  • Image analysis
  • Semantic retrieval
  • Generative AI and embeddings

Answer

ServiceFunctionality
Azure AI SearchSemantic retrieval
Azure AI VisionImage analysis
Azure OpenAI ServiceGenerative AI and embeddings

Question 7

You are designing an AI solution that must authenticate securely between Azure services without storing credentials in code.

Which feature should you implement?

A. Shared administrator passwords
B. Public anonymous access
C. Managed identities
D. Embedded API keys in source control

Answer

C. Managed identities

Question 8

You need to retrieve semantically similar documents even when users do not use exact keywords.

Which search capability enables this?

A. DNS lookup
B. Vector search
C. Binary search
D. OCR indexing

Answer

B. Vector search

Question 9

FILL IN THE BLANK

The process of converting images of text into machine-readable text is called __________.

Answer

OCR

Question 10

You need an AI agent to dynamically execute workflows such as:

  • Querying APIs
  • Updating tickets
  • Sending notifications

Which feature supports this requirement?

A. Function calling
B. Layout analysis
C. Object tracking
D. Translation

Answer

A. Function calling

Question 11

You are implementing a retrieval system that combines:

  • Keyword search
  • Vector similarity
  • Semantic ranking

What type of search is this?

A. Lexical-only retrieval
B. Sequential search
C. Binary retrieval
D. Hybrid search

Answer

D. Hybrid search

Question 12

You need to extract:

  • Vendor names
  • Totals
  • Invoice IDs

from scanned invoices.

Which Azure service is MOST appropriate?

A. Azure Firewall
B. Azure AI Document Intelligence
C. Azure DNS
D. Azure Virtual WAN

Answer

B. Azure AI Document Intelligence

Question 13

HOTSPOT — Select the BEST capability for each requirement.

RequirementCapability
Detect spoken words from audio?
Identify organizations in contracts?
Detect vehicles in images?

Options:

  • Speech-to-text
  • Object detection
  • Named Entity Recognition

Answer

RequirementCapability
Detect spoken words from audioSpeech-to-text
Identify organizations in contractsNamed Entity Recognition
Detect vehicles in imagesObject detection

Question 14

You need to monitor API latency, request volume, and failures in an Azure AI solution.

Which service should you use?

A. Azure Backup
B. Azure DNS
C. Azure Monitor
D. Azure Bastion

Answer

C. Azure Monitor

Question 15

MULTIPLE ANSWER — Which approaches commonly improve retrieval quality? (Choose THREE)

A. Semantic chunking
B. Metadata enrichment
C. Chunk overlap
D. Removing embeddings
E. Disabling ranking

Answer

A. Semantic chunking
B. Metadata enrichment
C. Chunk overlap

Question 16

You need to classify incoming support tickets into categories such as:

  • Billing
  • Technical issue
  • Sales inquiry

Which capability should you use?

A. OCR
B. Text classification
C. Face recognition
D. Image tagging

Answer

B. Text classification

Question 17

You are building a multimodal AI pipeline.

Which data types are examples of multimodal input? (Choose TWO)

A. Images
B. DNS zones
C. Routing tables
D. Audio

Answer

A. Images
D. Audio

Question 18

You need to preserve reading order and table structure when extracting content from PDFs.

Which capability is MOST important?

A. Sentiment analysis
B. Layout analysis
C. Translation
D. Speech synthesis

Answer

B. Layout analysis

Question 19

DRAG AND DROP — Match the concept to its description.

ConceptDescription
Embeddings?
Chunking?
Grounding?

Options:

  • Providing trusted context to an LLM
  • Splitting documents into smaller sections
  • Vector representations of semantic meaning

Answer

ConceptDescription
EmbeddingsVector representations of semantic meaning
ChunkingSplitting documents into smaller sections
GroundingProviding trusted context to an LLM

Question 20

You need to summarize lengthy research reports automatically.

Which capability should you implement?

A. OCR masking
B. Image segmentation
C. Translation
D. Text summarization

Answer

D. Text summarization

Question 21

You are building a voice-enabled assistant that accepts spoken commands.

Which capability converts speech into text?

A. OCR
B. Speech-to-text
C. Image classification
D. Object segmentation

Answer

B. Speech-to-text

Question 22

FILL IN THE BLANK

A retrieval pipeline that uses external data to improve AI response accuracy is called __________-Augmented Generation.

Answer

Retrieval

Question 23

You need to improve search filtering by storing contextual information such as:

  • Department
  • Classification level
  • Region

Which technique should you implement?

A. Token suppression
B. Metadata enrichment
C. Vector truncation
D. OCR masking

Answer

B. Metadata enrichment

Question 24

MULTIPLE ANSWER — Which are benefits of grounding AI responses? (Choose THREE)

A. Reduced hallucinations
B. Elimination of indexes
C. Better enterprise relevance
D. Improved factual accuracy
E. Removal of embeddings

Answer

A. Reduced hallucinations
C. Better enterprise relevance
D. Improved factual accuracy

Question 25

You are implementing an enterprise AI search solution that must enforce document-level security.

Which approach should you use?

A. Public anonymous indexes
B. Shared administrator accounts
C. Security trimming with RBAC
D. Disabled authentication

Answer

C. Security trimming with RBAC

Question 26

You need to orchestrate AI workflows between Azure services and external APIs using a low-code platform.

Which service should you use?

A. Azure Load Balancer
B. Azure Logic Apps
C. Azure Front Door
D. Azure Traffic Manager

Answer

B. Azure Logic Apps

Question 27

You are analyzing handwritten forms submitted by customers.

Which capability is MOST important?

A. Translation
B. Image compression
C. Speech synthesis
D. OCR with handwriting recognition

Answer

D. OCR with handwriting recognition

Question 28

You need to generate semantic vectors for similarity-based retrieval.

What are these vectors called?

A. Tokens
B. Classifiers
C. Entities
D. Embeddings

Answer

D. Embeddings

Question 29

You need to create an AI application that retrieves the latest enterprise content before generating responses.

Which architecture is MOST appropriate?

A. Batch ETL architecture
B. Static FAQ architecture
C. RAG architecture
D. Relational replication architecture

Answer

C. RAG architecture

Question 30

You are implementing enterprise AI governance and want to ensure users can only retrieve authorized documents.

Which practice BEST supports this requirement?

A. Shared credentials
B. Anonymous storage access
C. Public search indexes
D. Role-based access control (RBAC)

Answer

D. Role-based access control (RBAC)

Explanation

RBAC restricts access to authorized users and supports secure enterprise AI retrieval architectures.

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