AI-900 Microsoft Azure AI Fundamentals Free Practice Exam Questions (2026 Updated)

According to the Microsoft Azure AI Fundamentals (AI-900) official study guide and Microsoft Learn module “Describe features of machine learning on Azure”, a classification model outputs a probability score representing how likely each input belongs to a particular class. To decide whether a prediction is “positive” or “negative,” the model applies a threshold (often defaulted to 0.5). Adjusting this threshold directly affects the balance between false positives and false negatives.

A false positive occurs when the model incorrectly predicts a positive outcome (for example, predicting that a patient has a disease when they do not).

A false negative occurs when the model fails to predict a true positive (for example, predicting that a patient does not have a disease when they actually do).

To reduce false positives, you must make the model less likely to classify borderline cases as positive. This is done by increasing the decision threshold, thereby favoring false negatives (because the model will only classify a case as positive when the prediction confidence is very high). In other words, by moving the threshold upward, you tighten the model’s standard for what qualifies as a “positive” prediction, reducing incorrect positives.

Let’s review why other options are incorrect:

A. Include test data in training data: This contaminates your dataset and causes overfitting, which leads to unreliable performance metrics.

B. Increase the number of training iterations: This may improve learning but doesn’t specifically target false positives.

C. Modify the threshold in favor of false positives: That would increase, not reduce, false positives.

Therefore, the correct step to reduce false positives is to adjust the threshold in favor of false negatives, making the model more conservative when labeling a case as positive — hence, Answer: D.

According to the Microsoft Azure AI Fundamentals (AI-900) official study materials and the Microsoft Learn module: “Describe features of common AI workloads”, conversational AI solutions like chatbots can be created using various methods—not only through custom code. Azure provides both no- code/low-code and developer-focused approaches. For instance, users can design chatbots using Power Virtual Agents, which requires no programming knowledge, or they can use Azure Bot Service with the Bot Framework SDK for fully customized scenarios. Hence, the statement “Chatbots can only be built by using custom code” is False (No) because Azure supports multiple levels of technical involvement for building bots.

The second statement is True (Yes) because the Azure Bot Service is designed specifically to host, manage, and connect conversational bots to users across different channels. Microsoft Learn explicitly explains that the service provides integrated hosting, connection management, and telemetry for bots built using the Bot Framework or Power Virtual Agents. It acts as the foundation for deploying, scaling, and managing chatbot workloads in Azure.

The third statement is also True (Yes) because Azure Bot Service supports integration with Microsoft Teams, among many other channels such as Skype, Facebook Messenger, Slack, and web chat. Microsoft documentation states that Azure-hosted bots can communicate directly with Teams users through the Teams channel, enabling intelligent virtual assistants within the Teams environment.

According to the Microsoft Azure AI Fundamentals (AI-900) official study guide and the Microsoft Learn module “Describe features of common AI workloads and considerations”, Microsoft has defined six guiding principles for responsible AI. These principles are intended to ensure that AI systems are developed and deployed in ways that are ethical, transparent, and beneficial to all. The six principles are: Fairness, Reliability and Safety, Privacy and Security, Inclusiveness, Transparency, and Accountability.

Let’s break down the three correct options:

Fairness – Microsoft emphasizes that AI systems should treat all individuals fairly and avoid discrimination against people based on gender, race, age, or other characteristics. Fairness ensures that outcomes and decisions from AI systems are equitable across diverse user groups. In the AI-900 learning materials, fairness is explained as a foundational value that ensures algorithms and models do not introduce or amplify societal bias.

Reliability and Safety – This principle ensures that AI systems function as intended under all expected conditions and that they can handle unexpected inputs safely. Microsoft states that AI should be tested rigorously and validated for reliability before deployment. AI systems must perform consistently and avoid causing harm due to errors or failures.

Inclusiveness – Inclusiveness focuses on empowering everyone and engaging people of all backgrounds. Microsoft’s responsible AI guidance stresses designing AI systems that understand and respect cultural, linguistic, and ability differences to make technology accessible and beneficial to all users.

Options A (knowledgeability), B (decisiveness), and E (opinionatedness) are not part of Microsoft’s Responsible AI principles. These terms do not appear in any Microsoft Learn AI-900 curriculum or official responsible AI documentation.

Thus, based on the verified AI-900 study content and Microsoft’s Responsible AI framework, the correct answer is C. Inclusiveness, D. Fairness, and F. Reliability and Safety.

 You can communicate with a bot by using email → No

 You can communicate with a bot by using Microsoft Teams → Yes

 You can communicate with a bot by using a webchat interface → Yes

These answers are based on the Microsoft Azure AI Fundamentals (AI-900) Official Study Guide and the Microsoft Learn module “Explore conversational AI in Microsoft Azure.”

The Azure Bot Service allows developers to build, test, deploy, and manage intelligent chatbots that can interact with users through various channels. Channels are communication platforms or interfaces that connect users to bots. Once a bot is built and published through the Azure Bot Service, it can be connected to multiple channels such as Microsoft Teams, webchat, Skype, Facebook Messenger, Direct Line, Slack, and others.

Let’s evaluate each statement:

You can communicate with a bot by using email → NoAzure Bot Service does not support direct interaction via email as a channel. Bots are designed for real-time or conversational interactions through messaging or voice-based platforms, not asynchronous email communication.

You can communicate with a bot by using Microsoft Teams → YesMicrosoft Teams is one of the primary channels supported by Azure Bot Service. Bots can be integrated directly into Teams to handle chat-based conversations, provide information, automate workflows, or assist users interactively within Teams.

You can communicate with a bot by using a webchat interface → YesThe Web Chat channel is another core feature of Azure Bot Service. It allows embedding the bot into a website or web application using the Web Chat control or the Direct Line API, enabling users to chat directly from a browser interface.

In summary, Azure Bot Service supports real-time conversational interfaces like Teams and webchat, but not email.

According to the Microsoft Azure AI Fundamentals (AI-900) Official Study Guide and the Microsoft Learn module “Explore fundamental principles of machine learning,” anomaly detection is a specialized machine learning technique used to identify data points, patterns, or events that deviate significantly from normal behavior.

Anomaly detection is widely used for monitoring time-series data and detecting unexpected or rare occurrences that may indicate problems, opportunities, or fraud. For example:

Detecting fraudulent transactions in banking systems.

Identifying equipment malfunctions in industrial IoT applications.

Monitoring network intrusions in cybersecurity.

Detecting unexpected spikes or drops in web traffic or sales.

In Azure, this workload is supported by the Azure AI Anomaly Detector service, which uses statistical and machine learning algorithms to learn from historical data and establish a baseline of normal behavior. When the system detects data points that fall outside expected patterns, it flags them as anomalies.

Let’s evaluate the incorrect options:

A. A machine learning technique that understands written and spoken language → This describes Natural Language Processing (NLP), not anomaly detection.

B. A machine learning technique that classifies objects based on user-supplied images → This refers to image classification, typically using computer vision.

D. A machine learning technique that classifies images based on their contents → Also describes computer vision, not anomaly detection.

Therefore, the correct answer is C, since anomaly detection specifically refers to analyzing data over time and identifying unusual or abnormal patterns that differ from the expected trend.

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The correct answer is C. AI systems must be understandable, which corresponds to the Transparency principle of Microsoft’s Responsible AI framework.

According to the Microsoft Azure AI Fundamentals (AI-900) Official Study Guide and the Microsoft Learn module “Identify guiding principles for responsible AI”, Microsoft defines six key principles for responsible AI:

Fairness – AI systems should treat everyone equitably.

Reliability and safety – AI should function as intended, even under unexpected conditions.

Privacy and security – AI must protect personal and business data.

Inclusiveness – AI should empower everyone and engage diverse users.

Transparency – AI systems should be understandable.

Accountability – People should be accountable for AI systems.

The statement “AI systems must be understandable” aligns directly with the Transparency principle, ensuring that AI decisions and behaviors can be explained and interpreted by developers, users, and stakeholders. Microsoft emphasizes that transparent AI builds trust, allows debugging, and ensures ethical usage.

Other options are incorrect:

A. Use only publicly available data – Not a principle of Responsible AI.

B. Protect the interests of the company – Focused on business goals, not ethical AI.

D. Keep personal details public – Violates the Privacy and Security principle.

✅ Final Answer (Q179): C. AI systems must be understandable.

According to the Microsoft Azure AI Fundamentals (AI-900) official study guide and the Microsoft Learn module “Describe features of conversational AI workloads,” the correct answer is Power Virtual Agents. This service is part of the Microsoft Power Platform and is specifically designed to enable users to create intelligent chatbots without writing any code.

Power Virtual Agents (PVA) provides a no-code/low-code environment where business users and developers can collaboratively design conversational experiences. It integrates built-in natural language processing (NLP) models to understand user intent and respond intelligently to text or speech inputs. The platform’s interface allows chatbot creators to design dialogues visually, connect to back-end data via Power Automate, and publish bots on websites, Teams, or other communication channels.

This approach is highlighted in Microsoft Learn as an ideal solution for organizations that want to deploy conversational bots quickly without requiring specialized AI or programming expertise. PVA automatically leverages Microsoft’s language understanding models, allowing it to interpret user input and map it to predefined topics or actions.

Let’s analyze the other options:

Azure Health Bot: A specialized solution for the healthcare industry that provides prebuilt medical compliance and healthcare content. It is not a general-purpose, no-code chatbot builder.

Microsoft Bot Framework: A developer-focused SDK for building highly customized bots through code, offering maximum flexibility but not no-code functionality.

Therefore, the most appropriate choice that “can be used to build no-code apps that use built-in natural language processing models” is Power Virtual Agents — the official Microsoft no-code chatbot solution for conversational AI workloads.

According to the Microsoft Azure AI Fundamentals (AI-900) study guide, the three main types of supervised and unsupervised machine learning models—classification, clustering, and regression—are used for distinct problem types depending on the structure of the data and the prediction goal.

Clustering is an unsupervised learning technique used when the goal is to group items with similar characteristics without predefined labels. In this scenario, “Assign categories to passengers based on demographic data” implies automatically grouping passengers based on patterns such as age, income, or travel frequency, without any prior labeling. This directly maps to clustering, which discovers hidden groupings (for example, segmenting customers into categories like business travelers or vacationers).

Regression is a supervised learning method used to predict continuous numerical values. The scenario “Predict the amount of consumed fuel based on flight distance” is a classic regression problem because the output (fuel consumption) is a continuous variable dependent on another continuous variable (distance). Regression models, such as linear regression, are trained to estimate numeric outputs.

Classification is also a supervised learning approach, but it predicts discrete categories or outcomes. The scenario “Predict whether a passenger will miss their flight based on demographic data” involves a binary decision (missed or not missed), which is typical of classification tasks. These models learn from labeled examples to assign new instances to specific categories.

In summary, Clustering groups similar passengers, Regression predicts continuous numerical outcomes, and Classification determines categorical outcomes. This alignment precisely matches the definitions in Microsoft’s AI-900 learning objectives under “Describe common machine learning types and scenarios.”

This question tests understanding of AI workload types, a fundamental topic in the Microsoft Azure AI Fundamentals (AI-900) curriculum. Each workload type—Computer Vision, Natural Language Processing, Machine Learning (Regression), and Anomaly Detection—serves a specific function within the AI landscape, as explained in Microsoft Learn’s module “Describe features of common AI workloads.”

Computer Vision enables computers to “see” and interpret visual information such as images or videos. Identifying handwritten letters requires analyzing image patterns, shapes, and strokes, which is a classic image recognition task. Azure’s Computer Vision API and Custom Vision services are specifically designed for such tasks.

Natural Language Processing (NLP) involves interpreting human language, both written and spoken. Determining the sentiment of a social media post (positive, negative, or neutral) is a typical text analytics use case within NLP, often implemented using Azure’s Text Analytics for Sentiment Analysis.

Anomaly Detection focuses on identifying data points that deviate from normal patterns. Detecting fraudulent credit card payments requires finding transactions that are unusual compared to historical spending behavior. Azure’s Anomaly Detector API applies machine learning to identify such irregularities.

Machine Learning (Regression) is used for predicting continuous numerical outcomes based on historical data. Estimating next month’s toy sales is a regression problem—an example of supervised learning where the model predicts future sales values from past sales data.

Thus, based on Microsoft’s official AI-900 learning objectives, the correct mapping of workloads to scenarios is:

Computer Vision → Identify handwritten letters

NLP → Predict sentiment

Anomaly Detection → Fraud detection

Machine Learning (Regression) → Predict toy sales

The scenario requires two checks on each photo: (1) there is at least one face, and (2) at least one detected face is wearing sunglasses. The Azure AI Face service – Detect operation is purpose-built for this combination. It detects faces and returns per-face attributes, including glasses type, so you can enforce both rules in a single pass. From the official guidance, the Detect API “detects human faces in an image and returns the rectangle coordinates of their locations” and exposes face attributes such as glasses. A concise attribute extract states: “Glasses: NoGlasses, ReadingGlasses, Sunglasses, Swimming Goggles.” With this, you can count faces (requirement 1) and then verify that at least one face’s glasses attribute equals sunglasses (requirement 2).

By contrast, other options don’t align as precisely:

A. Verify (Face service) compares whether two detected faces belong to the same person. It does not provide content attributes like sunglasses; it requires face inputs for identity/one-to-one scenarios, which doesn’t meet your content-filter goal.

C. Describe Image (Computer Vision) returns a natural-language caption of the whole image. While a caption might mention “a person wearing sunglasses,” it’s not guaranteed, is not face-scoped, and offers less deterministic filtering than a structured attribute on a detected face.

D. Analyze Image (Computer Vision) can return tags such as “person” or sometimes “sunglasses,” but those tags are image-level and not bound to specific faces. You need to ensure that a detected face (not just any region) is wearing sunglasses. Face-scoped attributes from Face Detect are more reliable for this logic.

Therefore, the most accurate and exam-aligned choice is B. the Detect operation in the Face service, because it allows you to programmatically confirm face presence and per-face sunglasses in a precise, rule-driven workflow.

The described app identifies the coordinates of a product within an image of a supermarket shelf. This scenario directly corresponds to the object detection capability of Azure AI Custom Vision. As per the Microsoft Learn module “Train a Custom Vision model”, the object detection project type allows developers to train models that can both detect and locate objects within an image. It returns bounding box coordinates along with predicted labels for each detected item.

In this use case, the app doesn’t just classify what products are present—it needs the position of the product (coordinates). That function distinguishes object detection from classification. Classification simply assigns a label to the entire image, while object detection provides spatial information for multiple items in one image.

The other options are incorrect:

B. Azure AI Computer Vision Read and C. Azure AI Computer Vision OCR are used for extracting text from images, not locating objects.

D. Azure AI Custom Vision classification only categorizes images but cannot determine where objects appear.

Therefore, to build an app that finds and locates products in images, the correct choice is A. Azure AI Custom Vision object detection.

Box1: Sentiment analysis

Sentiment Analysis is the process of determining whether a piece of writing is positive, negative or neutral.

Box 2: Broad entity extraction

Broad entity extraction: Identify important concepts in text, including key

Key phrase extraction/ Broad entity extraction: Identify important concepts in text, including key phrases and named entities such as people, places, and organizations.

Box 3: Entity Recognition

Named Entity Recognition: Identify and categorize entities in your text as people, places, organizations, date/time, quantities, percentages, currencies, and more. Well-known entities are also recognized and linked to more information on the web.

In Microsoft Azure OpenAI Service and the AI-900/AI-102 study materials, grounding data is the correct term used to describe the process of providing contextual or external information to improve the accuracy, relevance, and quality of responses generated by a generative AI model such as GPT-3.5 or GPT-4.

Grounding is a prompt engineering technique where the AI model is supplemented with relevant background data, such as company documents, knowledge bases, or user context, that helps the model generate factually correct and context-aware responses. Microsoft Learn defines grounding as a way to connect the model’s general knowledge to specific, real-world information. For example, if you ask a GPT-3.5 model about your organization’s HR policies, the base model will not know them unless that policy information is provided (grounded) in the prompt. By embedding this contextual data, the AI becomes “grounded” in the facts it needs to respond reliably.

This technique differs from other prompt engineering concepts:

A. Providing examples (few-shot prompting) shows the model sample inputs and outputs to guide formatting or style, not factual context.

B. Fine-tuning involves retraining the model with labeled data to permanently adjust its behavior — it’s not a prompt-based technique.

D. System messages define the model’s role, tone, or style (for example, “You are a helpful assistant”) but do not add factual context.

Therefore, when you provide contextual information (like product details, policy documents, or reference text) within a prompt to enhance the quality and factual reliability of the model’s responses, you are applying the grounding data technique.

This question evaluates understanding of the different Azure AI Computer Vision services and their distinct functionalities, as covered in the Microsoft AI-900 study guide and Microsoft Learn modules under “Describe features of common AI workloads” and “Identify Azure services for computer vision.”

Azure AI Document Intelligence (formerly known as Form Recognizer):This service is designed to extract structured information from documents, such as forms, receipts, and invoices. It uses optical character recognition (OCR) combined with AI models to detect key-value pairs, tables, and handwritten text. This makes it ideal for automating data entry and digitizing scanned documents. Hence, it matches “Extract information from scanned forms and invoices.”

Azure AI Vision (formerly Computer Vision):This service provides image and video analysis capabilities. It can detect objects, people, text, and scenes; generate image captions; and extract descriptive tags. It also supports OCR for printed and handwritten text within images. Therefore, it matches “Analyze images and video, and extract descriptions, tags, objects, and text.”

Azure AI Custom Vision:Custom Vision allows you to train your own image classification and object detection models using your own labeled images. Unlike the general Vision service, Custom Vision lets you build domain-specific models—for example, detecting your company’s products or identifying manufacturing defects. Hence, it matches “Train custom image classification and object detection models by using your own images.”

These three services complement each other within Azure’s computer vision ecosystem, collectively supporting both general-purpose and specialized AI solutions for visual data analysis.

Features

According to the Microsoft Azure AI Fundamentals (AI-900) official study guide and the Microsoft Learn module “Explore fundamental principles of machine learning,” data values that influence the prediction of a model are called features. In the context of machine learning, a feature is an individual measurable property, attribute, or input variable used by the model to make predictions.

Features are the independent variables that describe the characteristics of the data. For example, in a housing price prediction model, features might include square footage, location, number of bedrooms, and year built. These inputs help the model understand relationships in the data so it can predict the target outcome (the house price).

Microsoft Learn explains that features are the input variables that the algorithm uses to identify patterns and relationships in the training data. During training, the model learns how changes in these features influence the label (also known as the dependent variable or target variable). The label is the value the model tries to predict—such as “price,” “category,” or “yes/no.”

Here’s how the other options differ:

Dependent variables (labels): These are the outcomes or target values the model predicts, not the inputs.

Identifiers: These are unique keys (like customer ID or transaction ID) used to distinguish records but not to influence predictions.

Labels: As mentioned, labels are the results the model tries to predict.

Therefore, based on the AI-900 learning objectives and Microsoft’s official explanation, the data values that influence the prediction of a model—that is, the input variables that guide the model’s learning—are called features. These features form the foundation of the model’s predictive capabilities and directly impact its accuracy and performance.

In Microsoft Azure AI Language Service, both Named Entity Recognition (NER) and Key Phrase Extraction are core features for text analytics. They serve distinct purposes in analyzing and structuring unstructured text data.

Named Entity Recognition (NER):NER is used to identify and categorize specific entities within text, such as people, organizations, locations, dates, times, and quantities. According to Microsoft Learn’s “Analyze text with Azure AI Language” module, NER scans text to extract these entities along with their types. Therefore, the statement “Named entity recognition can be used to retrieve dates and times in a text string” is True (Yes).

Key Phrase Extraction:This feature identifies the most important phrases or main topics in a block of text. It is useful for summarization or highlighting central ideas without classifying them into specific categories. Therefore, the statement “Key phrase extraction can be used to retrieve important phrases in a text string” is also True (Yes).

City Name Retrieval:While key phrase extraction highlights major phrases, it does not extract specific entities like cities or dates. Extracting such details requires Named Entity Recognition, which is designed to find named entities such as city names, people, or organizations. Hence, the statement “Key phrase extraction can be used to retrieve all the city names in a text string” is False (No).

According to the Microsoft Azure AI Fundamentals (AI-900) official study guide and the Microsoft Learn module “Describe core concepts of machine learning on Azure”, when building a predictive machine learning model, features are the input variables used by the algorithm to predict the target label. The target label is the output or value the model is trained to predict.

In this dataset, the target variable is clearly the Income Range, since the goal is to predict a customer’s income bracket. Therefore, Income Range (D) is the label, not a feature. Features must be other attributes that help the model make this prediction.

The fields Education Level (A) and Age (C) are the most relevant features because both can logically and statistically influence income level.

Education Level is a categorical variable that often correlates strongly with income. Individuals with higher education levels tend to earn more on average, making this an important predictor.

Age is a numerical variable that typically affects income level due to factors such as experience and career progression.

By contrast:

First Name (E) and Last Name (B) are irrelevant as features because they are identifiers, not meaningful predictors of income. Including them could lead to bias or model overfitting without contributing to accurate predictions.

Hence, according to AI-900 principles, the features used to train a model predicting income range would be Education Level and Age.