The answer is to use Azure AI Language with a HIPAA-eligible service tier and enable encryption. This configuration is correct because HIPAA compliance requires both a Business Associate Agreement (BAA) and technical safeguards for protected health information (PHI); Azure AI Language offers a dedicated HIPAA-enabled service tier that signs a BAA, while enabling encryption at rest and in transit satisfies the security rule’s data protection mandate. On the Microsoft Azure AI Engineer Associate AI-102 exam, this question tests your understanding that HIPAA compliance is not automatic—you must explicitly choose a HIPAA-eligible pricing tier and configure encryption, as the default tier may not support a BAA. A common trap is assuming any Azure AI Language service is automatically HIPAA compliant, but only specific tiers and encryption settings meet the requirement. Memory tip: think “BAA + Encryption = HIPAA Protection” to remember the two critical components when extracting medical entities from clinical notes.
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 healthcare organization uses Azure AI Language to extract medical entities from clinical notes. The solution must comply with HIPAA. What should you configure?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Use Azure AI Language with HIPAA-enabled service and enable encryption
Option A is correct because Azure AI Language can be configured with a HIPAA-eligible service tier, and enabling encryption at rest and in transit ensures compliance with HIPAA's security and privacy rules. This configuration meets the healthcare organization's requirement to protect protected health information (PHI) when extracting medical entities from clinical notes.
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.
✓
Use Azure AI Language with HIPAA-enabled service and enable encryption
Why this is correct
Azure AI Language offers HIPAA-compliant tiers with data encryption.
Related concept
Read the scenario before looking for a memorised answer.
✗
Configure data residency to a specific region
Why it's wrong here
Data residency addresses location requirements, not HIPAA-specific controls.
✗
Enable content filtering
Why it's wrong here
Content filtering blocks offensive content, not for HIPAA compliance.
✗
Isolate the service in a virtual network
Why it's wrong here
Network isolation is a security measure but not sufficient alone for HIPAA.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse network isolation (VNet) or data residency with HIPAA compliance, not realizing that HIPAA mandates specific encryption and a signed BAA, which are only available with a HIPAA-eligible service tier.
Detailed technical explanation
How to think about this question
Azure AI Language's HIPAA-eligible service is available in specific tiers (e.g., S0) and requires enabling customer-managed key (CMK) encryption for data at rest via Azure Key Vault, along with TLS 1.2 for data in transit. Under the hood, the service uses Azure's shared responsibility model where Microsoft provides a HIPAA Business Associate Agreement (BAA) for eligible services, and the customer must configure encryption and access policies to meet the HIPAA Security Rule's administrative, physical, and technical safeguards.
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.
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: Use Azure AI Language with HIPAA-enabled service and enable encryption — Option A is correct because Azure AI Language can be configured with a HIPAA-eligible service tier, and enabling encryption at rest and in transit ensures compliance with HIPAA's security and privacy rules. This configuration meets the healthcare organization's requirement to protect protected health information (PHI) when extracting medical entities from clinical notes.
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.
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