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AI-102 Implement agentic AI solutions Practice Question

A company is building an agent that uses Azure OpenAI to answer questions from a large document library. The agent must use a Retrieval Augmented Generation (RAG) pattern. Which TWO actions should the team take to implement RAG effectively?

⚠ Common exam trap

Candidates often confuse fine-tuning (which adapts model behavior) with RAG (which augments prompts with retrieved data), leading them to select Option B instead of understanding that RAG requires an external retrieval step and vector index.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Index the documents into a vector database like Azure Cognitive Search.

Indexing documents into a vector database like Azure Cognitive Search enables efficient similarity search over embeddings, which is the retrieval foundation of RAG. This allows the system to quickly find the most relevant document chunks based on semantic meaning, rather than relying on the model to memorize or be fine-tuned on the entire library.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Ensure the model is large enough to memorize the entire document library.

    Why it's wrong here

    Memorization is not feasible for large libraries.

  • Fine-tune the Azure OpenAI model on the document library.

    Why it's wrong here

    Fine-tuning is not required for RAG.

  • Index the documents into a vector database like Azure Cognitive Search.

    Why this is correct

    Indexing enables efficient retrieval of relevant content.

  • Train a custom language model from scratch.

    Why it's wrong here

    RAG uses a pretrained model.

  • Use a retrieval step to fetch relevant document chunks before generating a response.

    Why this is correct

    Retrieval is the core of RAG.

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