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Exam Code: AI-300
Exam Name: Operationalizing Machine Learning and Generative AI Solutions
Updated: Jul 29, 2026
Q & A: 159 Questions and Answers
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| Section | Objectives |
|---|---|
| Implement generative AI quality assurance and observability | - Evaluate generative AI outputs for quality, safety, and grounding - Monitor latency, token usage, cost, and error rates - Conduct red teaming, adversarial testing, and content filtering - Implement logging, tracing, and telemetry for GenAI applications |
| Design and implement an MLOps infrastructure | - Set up Azure Machine Learning workspace and compute targets - Implement security, governance, and compliance for MLOps - Configure source control, CI/CD pipelines, and automation for ML workflows - Manage environments, data stores, and model registries |
| Optimize generative AI systems and model performance | - Fine-tune and distill models for specific use cases - Optimize inference performance, caching, and throughput - Tune prompts, system messages, and grounding strategies - Implement cost management and scaling strategies for GenAI workloads |
| Design and implement a GenAIOps infrastructure | - Set up Microsoft Foundry and Azure AI services for generative AI workloads - Implement RAG (Retrieval-Augmented Generation) pipelines and vector search - Configure prompt orchestration, prompt flows, and agent frameworks - Manage API keys, rate limits, and responsible AI guardrails |
| Implement machine learning model lifecycle and operations | - Deploy models to real-time and batch endpoints - Monitor model performance, data drift, and operational health - Retrain, update, and manage model versions in production - Train, register, and version models using Azure Machine Learning |
1. Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear on the review screen.
You work in Microsoft Foundry with a prompt flow.
You must manually evaluate prompts and compare results across prompt variants.
You need to capture the inputs, outputs, token usage, and latencies for each flow run for the evaluation.
Solution: Use the prompt flow SDK to enable tracing for the flow before executing runs. Then run the flow to generate traceable results.
Does the solution meet the goal?
A) No
B) Yes
2. Hotspot Question
A team manages an Azure Machine Learning workspace to train and register machine learning models.
Previous model versions must be retained for audit and rollback purposes but must not be used for new deployments.
You need to manage model versions.
What should you do for each requirement? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
3. Case Study 1 - Fabrikam Inc.
Background
Fabrikam Inc. is a mid-sized healthcare analytics company that provides population health dashboards and predictive insights to regional hospital systems across the United States.
Fabrikam Inc. customers rely on near real time analytics to monitor patient flow, staffing needs, and readmission risks. They use multiple traditional forecasting machine learning models for predictions.
Fabrikam Inc. has an established Microsoft Azure footprint. The company uses Jupyter Notebooks that run on a local server as the primary development environment. The data science team is experiencing scalability, asset management and code management issues with the current development platform. Fabrikam Inc. plans to migrate to a cloud-based development environment to mitigate the issues.
Additionally, the company plans to implement a Retrieval-Augmented Generation (RAG)-based chat application for client support. Leadership requires the application to be developed and deployed with a low operational risk.
Current Environment
Fabrikam Inc. operates a single Azure subscription that has the following components:
* Azure Data Lake Storage Gen2 that contains de-identified clinical and operational datasets
* Azure AI Search indexing curated analytical documents and reference materials
* A small set of Python-based training scripts maintained by data scientists
* Azure OpenAI Service with deployed foundational models
* A Microsoft Foundry resource for building a RAG-based solution
Evaluation data has manually defined expected responses.
The current challenges faced by the data science team include the following:
* Model training jobs are run manually from notebooks.
* Experiment tracking is inconsistent
* Model versions are registered without standardized metadata.
* Deployment is performed manually by data scientists, with limited rollback capability.
* The team has no standardized evaluation process for generative AI outputs.
The environment currently allows public network access. Authentication relies on user accounts rather than managed identities. Compute targets are manually created and shared across experiments. This has led to resource contention during peak usage.
Business Requirements
Fabrikam Inc. has the following business requirements for the modernization initiative:
* Provide a conversational interface that answers analytics questions by using internal documents and datasets.
* Ensure that sensitive healthcare-related data is not exposed outside the Fabrikam Inc. Azure tenant.
* Enable repeatable and auditable model training and deployment processes.
* Support experimentation to compare prompt strategies and fine-tuned models.
* Align the model with the ranked preferences and optimize behavior for the long term.
* Minimize disruption to existing analytics workloads during rollout.
Technical Requirements
To support the business goals, Fabrikam Inc. identifies these technical requirements:
* Use Azure Machine Learning workspaces to centrally manage data assets, models, and environments.
* Implement experiment tracking and model versioning for all training jobs.
* Orchestrate training and evaluation by using pipelines rather than manually running notebooks.
* Deploy traditional machine learning models with support for staged rollout and rollback.
* Improve RAG-based solution output quality.
* Use the existing evaluation datasets that are based on real data with input-output pairs.
* Apply advanced fine-tuning techniques only when prompt engineering is insufficient Issues and Constraints Fabrikam Inc. must comply with internal security policies that require the company to restrict network access and avoid long-lived secrets. The data science team has limited Azure DevOps experience, so solutions must favor managed services and automation over custom infrastructure.
Cost predictability is important. Leadership prefers serverless or managed compute options where possible but is willing to approve dedicated compute for stable production workloads.
Problem Statement
Fabrikam Inc. must design and implement an Azure-based AI operations solution that enables reliable training, evaluation, deployment, and iteration of generative AI models. The solution must support experimentation and gradual rollout while ensuring governance, security, and operational stability. The data science and platform teams must collaborate to deliver this solution by using Azure Machine Learning and Microsoft Foundry capabilities.
You need to improve a GPT-5 model performance based on Fabrikam Inc.'s technical requirements. Which action should you perform first?
A) Fine-tune the model to improve accuracy.
B) Evaluate the model output.
C) Generate synthetic interaction data.
D) Deploy the model to production to gather real-world feedback.
4. DRAG DROP
A team deploys a classification model to production and scores incoming customer data daily.
After several weeks, business stakeholders report unexpected changes in prediction behavior, even though the endpoint remains healthy.
You need to determine whether data drift is occurring and if it is, identify the appropriate actions.
Which action should you perform for each observed signal? To answer, move the appropriate actions to the correct observed signals. You may use each action once, more than once, or not at all. You may need to move the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
5. Drag and Drop Question
A company is standardizing generative AI development across multiple teams.
Each team requires an isolated workspace. Governance and shared connections must be centrally managed.
You need to implement a Microsoft Foundry environment structure that supports centralized governance and team isolation.
Which type of configuration should you use for each requirement? To answer, move the appropriate configurations to the correct requirements. You may use each configuration once, more than once, or not at all. You may need to move the split bar between panes or scroll to view content.
NOTE: Each correct selection is worth one point.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: Only visible for members | Question # 3 Answer: B | Question # 4 Answer: Only visible for members | Question # 5 Answer: Only visible for members |
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