AI-102 Implement an agentic solution Practice Question
A company wants to integrate their Copilot Studio agent with an on-premises ERP system using an API. The on-premises API requires Windows Authentication. The agent must call the API securely without exposing credentials. Which Azure service should be used to enable this integration?
⚠ Common exam trap
Many candidates confuse network-level connectivity (VPN Gateway) with application-level integration (API Management + gateway), overlooking that Windows Authentication requires a gateway that can handle credential delegation and protocol translation, not just a network tunnel.
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
✓
Azure API Management with on-premises data gateway.
Azure API Management with an on-premises data gateway enables secure integration with on-premises APIs that require Windows Authentication. The gateway acts as a bridge, allowing the Copilot Studio agent to call the on-premises ERP API without exposing credentials, as the gateway handles authentication and secure connectivity via Azure Relay.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Azure Functions with HTTP trigger.
Why it's wrong here
Azure Functions cannot directly access on-premises resources without a gateway or hybrid connection.
- ✗
Azure VPN Gateway to connect to the on-premises network.
Why it's wrong here
VPN Gateway creates a network connection but does not provide API management or authentication handling.
- ✗
Azure Logic Apps with a connector.
Why it's wrong here
Logic Apps connectors for on-premises require an on-premises data gateway.
- ✓
Azure API Management with on-premises data gateway.
Why this is correct
API Management can use an on-premises data gateway to securely connect to on-premises APIs and handle Windows Authentication.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.