AI-103 · Domain 1: Plan and manage an Azure AI solution · 28% of the exam
Task 1.1: Choose the appropriate Foundry services for generative AI and agents
Matching each job to the right model (large, small, multimodal or a Foundry Tool) and the right Foundry service for generation, grounding, vector search, agent workflows and multimodal work, plus the retrieval, memory, tool and knowledge options an agent can use.
Study it
Choosing a model: large, small, reasoning and multimodal models, and when a Foundry Tool fits better
Try each one before opening the answer. Every option is explained, with the Microsoft documentation page that proves it.
Question 1 · choose 1
A team already has a LangGraph agent in Python that imports two internal libraries and runs custom orchestration code. They want Microsoft Foundry to give it a managed endpoint, automatic scaling and its own Microsoft Entra identity, without rewriting the logic. Which agent type should they use?
AA voice-based prompt agent connected through Voice Live
BAn ephemeral agent that calls the Responses API from the team's own web server
CA hosted agent that packages the existing code as a container or source bundle
DA prompt agent defined by instructions, a model and a set of tools
Show the answer and why
AA voice-based prompt agent connected through Voice Live
Incorrect
Voice-based prompt agents are for real-time spoken conversations. They are still declarative and don't run the team's code.
BAn ephemeral agent that calls the Responses API from the team's own web server
Incorrect
Foundry wouldn't provide the endpoint, scaling or identity for code that runs on the team's own server.
CA hosted agent that packages the existing code as a container or source bundle
Correct
Hosted agents run your own code and framework, such as LangGraph, as a container that Foundry hosts with a managed endpoint, scaling and a dedicated Entra identity.
DA prompt agent defined by instructions, a model and a set of tools
Incorrect
A prompt agent is configuration only. It has no place for custom orchestration code or private Python libraries.
Pick the agent type by how much code you own. Instructions and tools only point to a prompt agent; existing framework code with custom dependencies points to a hosted agent, which Foundry runs for you.
Three agents in one Foundry project must answer from the same company content, which lives in SharePoint sites and an Azure Blob Storage container. Answers need citations, and each user may see only the documents that user is allowed to open. Which approach should you choose?
AAttach the web search tool to each agent and restrict it to the intranet domain
BFine-tune the agents' model on the documents so that it can answer without retrieval
CUpload the documents to a vector store for each agent and enable the file search tool
DCreate one Foundry IQ knowledge base over both sources and connect all three agents
Show the answer and why
AAttach the web search tool to each agent and restrict it to the intranet domain
Incorrect
Web search grounds answers in public web results. It doesn't index private SharePoint or Blob content.
BFine-tune the agents' model on the documents so that it can answer without retrieval
Incorrect
A fine-tuned model gives no citations and can't enforce who may see which document.
CUpload the documents to a vector store for each agent and enable the file search tool
Incorrect
Copies of the documents in per-agent stores wouldn't carry SharePoint permissions, so access control would be lost.
DCreate one Foundry IQ knowledge base over both sources and connect all three agents
Correct
A knowledge base can combine several knowledge sources, be shared by many agents, return answers with citations and enforce user permissions at query time.
Foundry IQ is the managed knowledge layer for this case: one knowledge base over several sources, reused by many agents, with agentic retrieval, citations and permission-aware results.
A help desk chat app sends a mix of prompts: most are simple lookups, a few need careful reasoning. Today every prompt goes to one large reasoning model, and the cost is too high. The team wants a single deployment that picks a cheaper model when it's good enough, without writing routing code. What should they deploy?
ATwo deployments behind a classifier prompt that the app calls first to choose one
BModel router, set to a routing mode that favors cost
CA provisioned deployment of the current reasoning model
DA small language model for all prompts, with a larger maximum output length
Show the answer and why
ATwo deployments behind a classifier prompt that the app calls first to choose one
Incorrect
This works, but it is the routing code the team wants to avoid, and it adds a model call to every request.
BModel router, set to a routing mode that favors cost
Correct
Model router is deployed like any model and chooses an underlying model per prompt. Balanced and Cost modes pick the most cost-effective model within a quality band.
CA provisioned deployment of the current reasoning model
Incorrect
Provisioned throughput buys reserved capacity and steadier latency. It doesn't send simple prompts to a cheaper model.
DA small language model for all prompts, with a larger maximum output length
Incorrect
Sending every prompt to a small model lowers cost but drops quality on the prompts that need reasoning; output length doesn't add reasoning.
Model router analyzes each prompt and routes it to a suitable model behind one deployment. Use Cost or Balanced mode to favor cheaper models, and compare it with your baseline in an evaluation before switching.
A parcel company plans two features. The first labels the intent of short customer messages, millions a day, with a tight latency budget. The second answers agents' questions about photos of damaged parcels. Which two model choices fit these features? (Choose TWO.)
AA large reasoning model for the intent labels, to get the best accuracy
BA text embedding model for the photo questions
CA multimodal model that accepts image input for the photo questions
DAn image generation model for the photo questions
EA small language model deployment for the intent labels
Show the answer and why
AA large reasoning model for the intent labels, to get the best accuracy
Incorrect
For millions of short labels, a large model adds cost and latency that the task doesn't need.
BA text embedding model for the photo questions
Incorrect
A text embedding model can't read the photo, and it doesn't produce an answer.
CA multimodal model that accepts image input for the photo questions
Correct
Questions about what a photo shows need a model that reads images and text together.
DAn image generation model for the photo questions
Incorrect
Image generation models create or edit pictures from prompts; they don't answer questions about an existing photo.
EA small language model deployment for the intent labels
Correct
Labeling short messages is a narrow task. A small model handles it at lower cost and latency than a large model at this volume.
Match the model to the task: small models for narrow, high-volume text jobs; multimodal models when the input includes images. Image generation models create media rather than answer questions about it.
A travel agent built in Foundry Agent Service must answer questions such as "Are there rail strikes in France this week?" with current, cited information from the public web. Which tool should the agent use?
AThe model's own training knowledge with a request to be current
BThe web search tool, which grounds answers in current web results
CA file search vector store refreshed with news articles each month
DCode interpreter, asked to look up the news in Python code
Show the answer and why
AThe model's own training knowledge with a request to be current
Incorrect
Models have a knowledge cutoff, so they can't know this week's news.
BThe web search tool, which grounds answers in current web results
Correct
Web grounding tools query the web for current information and cite their sources with URLs.
CA file search vector store refreshed with news articles each month
Incorrect
Monthly uploads can't keep up with this week's events.
DCode interpreter, asked to look up the news in Python code
Incorrect
Code interpreter isn't a search tool for current events.
For current public information, give the agent a web grounding tool; use file search and knowledge bases for your own content.
A project-management vendor publishes a remote Model Context Protocol server that exposes tools for creating and updating tasks. A Foundry agent should use those tools. What is the most direct way to connect it?
AUpload the vendor's documentation to a vector store for file search
BWrite a function tool that the app implements for each vendor action
CPaste sample tool requests into the agent's instructions
DAdd the MCP tool pointing at the vendor's remote MCP server endpoint
Show the answer and why
AUpload the vendor's documentation to a vector store for file search
Incorrect
Documentation lets the agent read about the tools, not call them.
BWrite a function tool that the app implements for each vendor action
Incorrect
That rebuilds by hand what the MCP server already exposes.
CPaste sample tool requests into the agent's instructions
Incorrect
Instructions can describe actions but can't execute them.
DAdd the MCP tool pointing at the vendor's remote MCP server endpoint
Correct
The MCP tool connects agents to remote MCP server endpoints and the tools they expose.
When a service already speaks MCP, connect it as an MCP tool instead of re-implementing its operations as custom functions.
A team must choose between several catalog models for a summarization feature. Before building anything, it wants to compare benchmark quality, safety, cost and throughput side by side and see trade-offs. Which Foundry feature fits that first step?
AThe model leaderboards and model comparison in the catalog
BA guardrail applied to each candidate model's deployment
CThe AI gateway's token limits on each candidate model
DDiagnostic logs from each model's deployment in production
Show the answer and why
AThe model leaderboards and model comparison in the catalog
Correct
Leaderboards (preview) and side-by-side comparison show benchmark scores across quality, safety, cost and throughput, with trade-off charts.
BA guardrail applied to each candidate model's deployment
Incorrect
Guardrails filter content at run time; they don't rank models.
CThe AI gateway's token limits on each candidate model
Incorrect
Gateway policies govern traffic; they don't compare model quality.
DDiagnostic logs from each model's deployment in production
Incorrect
Logs come after deployment and don't benchmark candidates.
Use benchmarks to shortlist, then evaluate the shortlisted models on your own data before deciding; public benchmarks don't replace tests on your task.
For a proof of concept, a team wants PDFs in Blob Storage chunked, embedded with a Foundry embedding model and indexed in Azure AI Search for vector queries. Nobody on the team will write code or JSON definitions this week. Which option gets there fastest?
AA scoring profile on the index that weights the main text field
BSearch Explorer queries sent from the search service in the portal
CA skillset with Text Split and embedding skills, written by hand
DThe Import data wizard in the Azure portal
Show the answer and why
AA scoring profile on the index that weights the main text field
Incorrect
Scoring profiles boost or suppress the ranking of documents already in an index; they don't load, chunk or embed any blobs.
BSearch Explorer queries sent from the search service in the portal
Incorrect
Search Explorer runs queries against an index that already holds content; it doesn't build the ingestion pipeline.
CA skillset with Text Split and embedding skills, written by hand
Incorrect
Those are the right skills, but writing the skillset, index and indexer definitions yourself is the JSON work the team wants to avoid.
DThe Import data wizard in the Azure portal
Correct
The wizard chunks the content and calls the chosen embedding model to vectorize it, creating the data source, skillset, index and indexer.
For a quick start with integrated vectorization, use the portal wizard. The objects it creates have JSON definitions you can review and move into code or templates later, when the pipeline needs versioning.
A team plans a new customer agent in October 2026. An old tutorial they found builds it on the Assistants API with threads and runs. Which service should the new build use?
AThe azure-ai-inference package with a custom thread store
BThe Assistants API, following the tutorial as written
CFoundry Agent Service, which is generally available
DPrompt flow, with the agent built as a flow
Show the answer and why
AThe azure-ai-inference package with a custom thread store
Incorrect
The azure-ai-inference package retired on August 26, 2026.
BThe Assistants API, following the tutorial as written
Incorrect
The Assistants API sunset on August 26, 2026, so a new build shouldn't depend on it.
CFoundry Agent Service, which is generally available
Correct
The Assistants API sunset on August 26, 2026; Microsoft points to the generally available Foundry Agent Service.
DPrompt flow, with the agent built as a flow
Incorrect
Prompt flow is retiring and isn't recommended for new development.
Check lifecycle notices before building: the Assistants API and the azure-ai-inference package are retired, and prompt flow is retiring. New agents belong in Foundry Agent Service.