AI-102 Implement an agentic solution Practice Question
You are a Microsoft AI engineer for a multinational retail company. The company uses Microsoft Copilot Studio to build an agent for employee self-service. The agent must handle three main tasks: (1) look up employee information from an on-premises HR database, (2) submit expense reports, and (3) answer questions about company policies stored in SharePoint Online. The HR database can only be accessed via a REST API that requires NTLM authentication. The expense report submission must be routed to a third-party system that uses OAuth 2.0. The policy documents are in multiple languages and the agent must provide answers in the user's language. The agent is published to Microsoft Teams and must support single sign-on (SSO) for authenticated users. The company has strict security requirements: all backend calls must use the user's identity, not a generic service account. The agent must also log all interactions for audit purposes. You need to design the solution architecture. Which combination of Azure services and configurations should you use?
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
✓
Use an on-premises data gateway with a custom connector for the HR API, a custom connector for the expense system with OAuth 2.0, enable generative answers with SharePoint, and configure SSO with Microsoft Entra ID.
Azure Functions require an on-premises data gateway to securely access the on-premises HR API with NTLM authentication, and the Bot Framework SDK is unnecessary as Copilot Studio natively supports multi-language. Option B is incorrect because Power Automate flows cannot directly access the on-premises API without an on-premises data gateway, and they cannot handle OAuth 2.0 for the expense system without custom connectors. Option C is incorrect because while it uses the on-premises data gateway and custom connector, it does not configure SSO with Microsoft Entra ID, which is required for user identity delegation and single sign-on. Option D correctly combines the on-premises data gateway with a custom connector for NTLM, a custom connector for OAuth 2.0, generative answers with SharePoint for multilingual policies, and SSO with Microsoft Entra ID.
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 Functions to wrap the on-premises API and the expense system, connect via hybrid connections, and use the Bot Framework SDK to handle multi-language.
Why it's wrong here
Azure Functions would need an on-premises data gateway for NTLM, and hybrid connections are not the standard approach for NTLM.
- ✗
Use Power Automate flows for all backend calls, configure SharePoint as a knowledge source, and enable SSO with Microsoft Entra ID.
Why it's wrong here
Power Automate flows cannot directly call on-premises APIs with NTLM without an on-premises data gateway.
- ✗
Use Azure Logic Apps with on-premises data gateway for the HR API, custom connector for expense system, and enable generative answers with SharePoint.
Why it's wrong here
Logic Apps can use the gateway but the agent would need to call Logic Apps; custom connectors are more direct for Copilot Studio.
- ✓
Use an on-premises data gateway with a custom connector for the HR API, a custom connector for the expense system with OAuth 2.0, enable generative answers with SharePoint, and configure SSO with Microsoft Entra ID.
Why this is correct
This architecture meets all requirements: on-premises gateway for NTLM, custom connectors for authentication, generative answers for multi-language, and SSO for Teams.
Quick reference
Cloud Service Model Comparison
| Model | You Manage | Provider Manages | Examples |
|---|---|---|---|
| IaaS | OS, runtime, apps, data | Hardware, hypervisor, networking | EC2, Azure VMs, GCP Compute Engine |
| PaaS | Apps and data | OS, runtime, middleware, hardware | Elastic Beanstalk, Azure App Service |
| SaaS | Data and settings only | Everything else | Microsoft 365, Salesforce, Workday |
| FaaS / Serverless | Function code only | Infra, scaling, runtime | Lambda, Azure Functions, Cloud Run |
| CaaS | Containers and apps | Kubernetes, OS, hardware | EKS, AKS, GKE |
Go deeper
Related to this question
About these practice questions
Courseiva writes every AI-102 question from scratch — 945 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
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.