AI-102 Plan and manage an Azure AI solution Practice Question
A healthcare organization uses Azure AI Language to extract medical entities from clinical notes. The solution must comply with HIPAA and data residency requirements. Which configuration is essential?
⚠ Common exam trap
Many candidates confuse network-level security (private endpoints) or encryption controls (CMK) with data residency, assuming any security measure automatically satisfies geographic compliance requirements.
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 the AI resource in the required Azure region.
Data residency requirements dictate that the Azure AI Language resource must be physically located in the specific Azure region where the clinical notes and extracted medical entities are permitted to reside. Creating the resource in the required Azure region ensures that all data at rest and in transit stays within that geographic boundary, which is a fundamental compliance step for HIPAA and data residency. Other configurations like encryption keys or private endpoints enhance security but do not satisfy the core residency requirement.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Enable diagnostic logging for all operations.
Why it's wrong here
Logging helps auditing but does not enforce data residency.
- ✗
Use a customer-managed key (CMK) for encryption.
Why it's wrong here
CMK is an encryption option but not required for HIPAA or residency.
- ✗
Enable private endpoint for the AI resource.
Why it's wrong here
Private endpoints provide network isolation but do not guarantee data residency.
- ✓
Create the AI resource in the required Azure region.
Why this is correct
Data stays in the region where the resource is provisioned, meeting residency.
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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.