- A
Deploy the Azure AI services in multiple regions globally and use geo-replication.
Why wrong: Multi-region deployment may replicate data outside EU.
- B
Use the Azure AI services 'Data Residency' SKU.
Why wrong: No such SKU exists; data residency is managed by region selection.
- C
Use the Free tier of Azure AI services.
Why wrong: The Free tier does not guarantee data residency.
- D
Create an Azure AI services resource in a specific EU region and set the data residency option to 'EU'.
Azure AI services allow you to choose a region to control data residency.
AI-102 Plan and manage an Azure AI solution Practice Question
This AI-102 practice question tests your understanding of plan and manage an azure ai solution. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company plans to deploy an Azure AI solution that processes sensitive customer data. The solution must comply with GDPR and ensure data residency within the European Union. Which Azure resource configuration should be used?
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
Create an Azure AI services resource in a specific EU region and set the data residency option to 'EU'.
Option D is correct because Azure AI services allow you to specify a data residency option when creating the resource in a specific EU region, ensuring that all customer data remains within the European Union as required by GDPR. This configuration explicitly restricts data processing and storage to the chosen geographic boundary, meeting compliance and residency mandates.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Deploy the Azure AI services in multiple regions globally and use geo-replication.
Why it's wrong here
Multi-region deployment may replicate data outside EU.
- ✗
Use the Azure AI services 'Data Residency' SKU.
Why it's wrong here
No such SKU exists; data residency is managed by region selection.
- ✗
Use the Free tier of Azure AI services.
Why it's wrong here
The Free tier does not guarantee data residency.
- ✓
Create an Azure AI services resource in a specific EU region and set the data residency option to 'EU'.
Why this is correct
Azure AI services allow you to choose a region to control data residency.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse the 'Data Residency' option with a separate SKU or assume that geo-replication across EU regions is acceptable, but Azure requires explicit regional restriction to prevent data leaving the EU boundary.
Detailed technical explanation
How to think about this question
Under the hood, Azure AI services enforce data residency through the 'Data Residency' toggle in the resource creation blade, which restricts processing and storage to the selected geographic region (e.g., West Europe) and prevents data from being transferred to other regions even for redundancy. This is critical for GDPR compliance, as Article 44-49 require that personal data of EU subjects remains within the European Economic Area unless specific safeguards are met. In real-world scenarios, a financial institution handling EU customer credit scores must use this option to avoid fines of up to 4% of annual global turnover.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this AI-102 question test?
Plan and manage an Azure AI solution — This question tests Plan and manage an Azure AI solution — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Create an Azure AI services resource in a specific EU region and set the data residency option to 'EU'. — Option D is correct because Azure AI services allow you to specify a data residency option when creating the resource in a specific EU region, ensuring that all customer data remains within the European Union as required by GDPR. This configuration explicitly restricts data processing and storage to the chosen geographic boundary, meeting compliance and residency mandates.
What should I do if I get this AI-102 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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Last reviewed: Jun 11, 2026
This AI-102 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AI-102 exam.
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