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AI-102 Implement generative AI solutions Practice Question

You need to create a chatbot that uses Azure OpenAI to answer questions about your company's internal policies. The responses must be based only on the provided policy documents. Which approach 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 Retrieval-Augmented Generation (RAG) with an Azure AI Search index of the documents.

Retrieval-Augmented Generation (RAG) uses an Azure AI Search index to retrieve relevant policy documents and then generates answers based solely on that content, ensuring responses are grounded in the provided documents. Option A is wrong because the model's pre‑existing knowledge is generic and not specific to the company's internal policies, so answers may be inaccurate or unsupported. Option B is wrong because fine‑tuning a GPT model on the policy documents can still lead to hallucination; the model might generate plausible‑sounding but ungrounded content not directly from the documents. Option C is wrong because prompt engineering alone cannot force the model to ignore its training data; without retrieval, the model may incorporate external knowledge or fabricate information.

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 the model's pre-existing knowledge about common policies.

    Why it's wrong here

    Pre-existing knowledge may be outdated or inaccurate.

  • Fine-tune a GPT model on the policy documents.

    Why it's wrong here

    Fine-tuning does not guarantee responses are limited to documents.

  • Use prompt engineering to instruct the model to only use policy knowledge.

    Why it's wrong here

    Prompt engineering is not sufficient to enforce factual grounding.

  • Use Retrieval-Augmented Generation (RAG) with an Azure AI Search index of the documents.

    Why this is correct

    RAG ensures responses are grounded in the retrieved documents.

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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.