The correct answer is to create a private endpoint and associate a customer-managed key in the resource encryption settings. This combination works because the private endpoint assigns a private IP address from your virtual network to the Azure AI service, effectively isolating the endpoint from the public internet, while the customer-managed key (CMK) ensures all data at rest is encrypted using a key you control in Azure Key Vault. On the AI-102 exam, this scenario tests your understanding of how to configure both network security and encryption governance for Azure AI services, often appearing as a multi-step configuration question where candidates must distinguish between service endpoints and private endpoints. A common trap is choosing a service endpoint instead of a private endpoint, but remember that only a private endpoint provides true network isolation by placing the resource directly on your VNet. Memory tip: “Private for the path, CMK for the vault” — private endpoint secures the network path, CMK secures the data at rest.
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. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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 company is using Azure AI Document Intelligence to extract patient data from forms. They need to ensure that all extracted data is encrypted at rest using a customer-managed key (CMK) and that the service endpoint is restricted to a specific virtual network. Which combination of steps should they take?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Create a private endpoint and associate a customer-managed key in the resource encryption settings
Option D is correct because it combines a private endpoint (which restricts the service endpoint to a specific virtual network by providing a private IP address within that VNet, eliminating public internet exposure) with a customer-managed key (CMK) in the resource encryption settings, which ensures data at rest is encrypted using a key stored in Azure Key Vault that the customer controls. This directly meets both requirements: network isolation via private endpoint and CMK-based encryption at rest.
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 a service endpoint and configure a managed identity
Why it's wrong here
Service endpoints do not support CMK encryption.
✗
Disable public network access and enable CMK via Azure Key Vault
Why it's wrong here
Disabling public network access alone does not enable CMK; must create private endpoint.
✗
Configure IP firewall rules and enable CMK via Azure Key Vault
Why it's wrong here
Firewall rules do not provide network isolation for CMK.
✓
Create a private endpoint and associate a customer-managed key in the resource encryption settings
Why this is correct
Private endpoint secures network traffic; CMK encryption is configured in resource settings with Key Vault.
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 often confuse 'service endpoint' or 'IP firewall rules' with 'private endpoint' for VNet-specific access, but only a private endpoint provides a fully private IP within the VNet and meets the 'restricted to a specific virtual network' requirement, while the other options either allow public exposure or do not enforce VNet-level isolation.
Detailed technical explanation
How to think about this question
A private endpoint uses Azure Private Link to assign a private IP from the customer's VNet to the Azure AI Document Intelligence resource, ensuring traffic never traverses the public internet and is fully isolated within the VNet. Customer-managed keys (CMK) for Azure AI services are configured in the resource's Encryption blade, where you specify an Azure Key Vault key URI; the service then uses that key for envelope encryption of all data at rest, including extracted patient data. A subtle behavior is that once CMK is enabled, the service requires the key to be accessible at all times, and if the key is revoked or deleted, the resource becomes inaccessible.
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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
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: Create a private endpoint and associate a customer-managed key in the resource encryption settings — Option D is correct because it combines a private endpoint (which restricts the service endpoint to a specific virtual network by providing a private IP address within that VNet, eliminating public internet exposure) with a customer-managed key (CMK) in the resource encryption settings, which ensures data at rest is encrypted using a key stored in Azure Key Vault that the customer controls. This directly meets both requirements: network isolation via private endpoint and CMK-based encryption at rest.
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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Question Discussion
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