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Master the art and engineering of building production-grade AI applications and autonomous agents on Azure.
The AI-103 is the successor to the beloved AI-102 (Azure AI Engineer Associate), and it represents a quantum leap in scope and ambition. Where the AI-102 focused on consuming individual Azure AI Services--a bit of vision here, some NLP there--the AI-103 is built around Microsoft Foundry as the unified platform for building, deploying, and operating AI applications and autonomous agents. The exam demands that you plan Azure infrastructure for AI, implement RAG pipelines, build multi-agent orchestrations with safeguards, and operationalize the whole stack with tracing, token analytics, and safety monitoring.
This is a developer-focused course, and the approach reflects that: approximately 20% conceptual architecture slides and 80% live-coded, screencast-based demonstrations. Every lesson follows a consistent pattern: explain the architectural context, build the solution live in Foundry and VS Code, then review what we built and connect it to exam objectives.
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Introduction
Choose Foundry Services, Models, and Integration Approach
Learning objectives
Choose an appropriate model for each task, including LLMs, small language models, multimodal models, and Foundry Tools
Choose the appropriate Foundry services for generative tasks, grounding, vector search, agent workflows, or multimodal processing
Choose an appropriate method for retrieval and indexing
Choose appropriate memory, tool, and knowledge integration services for agent solutions
Demo: Touring the Microsoft Foundry agent ecosystem
Demo: One grounded agent, four Foundry decisions (Python SDK)
Demo: Foundry LLM bakeoff
Set Up AI Solutions in Foundry
Learning objectives
Design Azure infrastructure for AI apps and agent-based solutions
Choose appropriate deployment options
Configure model and agent deployments
Integrate Foundry projects with CI/CD pipelines
Demo: Touring the Foundry control plane, RBAC roles, and the model gallery
Demo: Deploying a model in the portal and the SDK (when quota fights back)
Demo: Foundry CI/CD with GitHub Actions and Bicep as code
Manage and Monitor AI Systems
Learning objectives
Manage quotas, scaling, rate limits, and cost footprints for model and agent workloads
Monitor model performance, drift, safety events, and grounding quality
Monitor data ingestion quality, search index health, and relevance performance
Demo: Instrument telemetry with Python, Application Insights, and KQL
Demo: Azure Monitor, diagnostic settings, quota, and cost in the portal
Demo: Monitor Azure AI Search index health in the portal
Secure AI Systems with Zero Trust Identity and Networking
Learning objectives
Configure security, including managed identity, private networking, keyless credentials, and role policies
Apply Zero Trust networking principles to Microsoft Foundry projects by using private endpoints and virtual network integration
Assign built-in and custom Azure RBAC roles to service principals, users, and managed identities accessing Foundry resources
Demo: Managed identity and Foundry RBAC in the portal
Demo: Custom RBAC role JSON, the keyless Azure CLI, and Bicep infrastructure as code
Implement Responsible AI Across Generative and Agentic Systems
Learning objectives
Configure safety filters, guardrails, risk detection, and content moderation
Apply responsible AI instrumentation, including evaluators, safety evaluations, and explanation tooling
Implement auditing through trace logging, provenance metadata, and approval workflows
Govern agent behavior with oversight modes, constraints, and tool-access controls
Demo: The six Responsible AI principles
Demo: Guardrails, traces, and evals in the Foundry portal
Demo: Content Safety prompt shields and groundedness
Build Generative Applications with the Foundry SDK
Learning objectives
Deploy and consume LLMs, small models, code models, and multimodal models
Integrate generative workflows into applications by using Foundry SDKs and connectors
Configure an application to connect to a Foundry project
Demo: Tour the project endpoint, the SDK repos, and the Foundry toolkit
Demo: Connect, consume, multi-turn, and list connections with the Foundry SDK
Prompt Engineering and Optimizing Generation Behavior
Learning objectives
Tune generation behavior, such as prompt engineering and adjusting model parameters
Apply prompt engineering patterns including role prompting, few-shot examples, structured output formatting, and grounding instructions
Implement model reflection, chain-of-thought evaluations, and self-critique loops
Demo: The Foundry playground tuning parameters, prompt patterns, and viewing traces
Demo: Observability in code tracing, token, safety, and latency signals
Implement Retrieval-Augmented Generation and Multistep Reasoning Workflows
Learning objectives
Implement RAG in an application
Design workflows, tool-augmented flows, and multistep reasoning pipelines
Orchestrate multiple models, flows, or hybrid LLM and rules engines
Demo: From text to tokens to vectors the mental model behind embeddings
Demo: RAG in code ingest, embed, and retrieve with the Foundry SDK
Demo: Inside the Azure AI Search index fields, vectors, and Search explorer
Demo: Foundry IQ wiring a knowledge base and knowledge source to your project
Demo: Grounding an agent in the knowledge base and reading its traces
Evaluate, Observe, and Operationalize Generative AI Apps
Learning objectives
Evaluate models and apps, including detecting fabrications, relevance, quality, and safety
Set up observability by implementing tracing, token analytics, safety signals, and latency breakdowns
Instrument Microsoft Foundry applications with Azure Monitor, Application Insights, and OpenTelemetry for end-to-end production telemetry
Demo: Wiring up evals, traces, and alerts
Demo: Transaction search, KQL, and eval sets
Build Agents with Foundry: Roles, Memory, Tools, and Function
Learning objectives
Define agent roles, goals, conversation-tracking approach, and tool schemas
Build agents that integrate retrieval, function-calling, and conversation memory
Integrate agent tools, including APIs, knowledge stores, search, content understanding, and custom functions
Demo: The agent definition in the portal
Demo: Tool schemas and the function-calling loop
Demo: An interactive tool REPL
Orchestrate Multi-Agent Solutions and Monitor Agent Behavior
Learning objectives
Implement orchestrated multi-agent solutions
Build autonomous or semiautonomous workflows with safeguards and approval flow controls
Integrate monitoring into deployed agents, evaluate agent behavior, and perform error analysis
Demo: Agent topology and hand-off
Demo: Multi-agent run and KQL monitoring
Demo: The approval gate
Generate and Edit Images and Videos with Foundry
Learning objectives
Implement a solution that generates images from text prompts and reference media
Implement a solution that generates videos from text prompts and reference media
Configure image-editing workflows, including inpainting, mask-based edits, and prompt-driven modifications
Implement workflows to edit generated videos
Select and apply appropriate generation and editing controls provided by the platform
Demo: Provenance scanning, image generation, and Sora video
Demo: The Foundry portal, the images playground, and provenance detection
Multimodal Understanding and Visual Analysis Workflows
Learning objectives
Build a solution that analyzes visual context by using multimodal models
Configure apps to produce concise or detailed captions for single or multiple images
Implement a solution that enables question-answering grounded in visual evidence
Configure generation of alt-text and extended image descriptions aligned to accessibility guidelines
Implement visual understanding by configuring Azure Content Understanding in Foundry Tools to extract visual characteristics
Implement video analysis workflows to process and interpret video segments
Configure single-task and pro-mode content-understanding pipelines
Implement solutions that identify objects, components, or regions within images or video
Demo: The Foundry playgrounds and Content Understanding Studio
Demo: Vision chat, analyzers, and video key frames in code
Demo: Video Indexer
Implement Responsible AI for Multimodal Content
Learning objectives
Implement filters to classify unsafe or disallowed visual content
Detect and mitigate indirect prompt injection by using embedded text in images
Enforce visual policy rules, such as applying watermarks, flagging prohibited symbols, upholding brand usage requirements, and detecting inappropriate content
Demo1: Policy filters and pixel injection
Demo: Four-rule policy and remediation
Apply Language Model Text Analysis and Translation
Learning objectives
Implement solutions to extract entities, topics, summaries, and structured JSON outputs by using generative prompting and Foundry Tools
Configure detection of sentiment, tone, safety issues, and sensitive content
Build solutions that translate text by using Azure Translator in Foundry Tools or LLM-powered translation flows
Customize language model outputs for domain tasks, such as compliance summarization and domain extraction
Demo: The Language and Translator playgrounds
Demo: Schema extraction and translation
Implement Speech Solutions for Agentic Interactions
Learning objectives
Implement workflows to convert speech to text and text to speech for agentic interactions
Integrate speech as an agent modality, including custom speech models
Enable multimodal reasoning from audio inputs
Translate speech into other languages by using language models and Foundry Tools
Demo: Speech playgrounds and Voice Live
Demo: Speech translation and phrase lists in code
Build Retrieval and Grounding Pipelines
Learning objectives
Ingest and index content, such as documents, images, audio, and video
Configure semantic search, hybrid search, and vector search for grounding
Implement enrichment by using custom or built-in skills for text, images, and layout
Configure RAG ingestion flow, including documents and using OCR
Connect retrieval pipelines directly to workflows and agent tools
Demo: Azure AI Search indexes and query modes
Demo: Retrieval as an agent tool
Extract Content from Documents with Content Understanding
Learning objectives
Extract information by using multimodal pipelines that combine OCR, layout analysis, and field extraction
Produce clean, grounded representations to use with agents and RAG by using Content Understanding
Implement analyzers for generating structured or markdown outputs for downstream reasoning by using Content Understanding
Demo: Prebuilt analyzers in Content Understanding
Demo: Choosing a service, then building an analyzer
Summary
