The correct answer is to disable local authentication, enable a managed identity, and configure the virtual network. This directly satisfies both security requirements because disabling local authentication forces all API calls to authenticate via Microsoft Entra ID instead of using the default endpoint and key, while enabling a managed identity provides Azure AI Language with a secure, identity-based method to authenticate with Entra ID without storing credentials. Configuring the virtual network then restricts network access to the specified VNet, ensuring that only traffic from that private network can reach the resource. On the Microsoft Azure AI Engineer Associate AI-102 exam, this scenario tests your understanding of how to transition from legacy key-based authentication to modern, zero-trust security controls using managed identities and network isolation. A common trap is to only enable the managed identity without disabling local authentication, which leaves the key-based endpoint still active. Remember the mnemonic D-E-N: Disable keys, Enable identity, Network lock.
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. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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.
Your company uses Azure AI Language to analyze customer feedback. The solution currently uses the default endpoint and key. Security policy requires that all API calls be authenticated using Microsoft Entra ID and that network access be restricted to a specific virtual network. You need to reconfigure the resource. What should you do?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Disable local authentication, enable managed identity, and configure the virtual network
Option A is correct because it addresses both security requirements: disabling local authentication ensures that API keys cannot be used, forcing all calls to authenticate via Microsoft Entra ID; enabling a managed identity provides a secure identity for the resource to authenticate with Entra ID; and configuring the virtual network restricts network access to the specified VNet, meeting the network restriction policy.
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.
✓
Disable local authentication, enable managed identity, and configure the virtual network
Why this is correct
Managed identity uses Microsoft Entra ID, and VNet integration restricts network access.
Related concept
Read the scenario before looking for a memorised answer.
✗
Regenerate the API keys and update the application
Why it's wrong here
Using API keys violates the policy requiring Microsoft Entra ID authentication.
✗
Create a private endpoint for the resource
Why it's wrong here
Private endpoint alone does not enforce Microsoft Entra ID authentication.
✗
Configure the resource to use Microsoft Entra ID authentication only
Why it's wrong here
Does not restrict network access to a specific virtual network.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse 'private endpoint' (which only handles network isolation) with the combined requirement of authentication and network access, leading them to select Option C without realizing that local authentication must also be disabled.
Detailed technical explanation
How to think about this question
Under the hood, Azure AI Language resources expose two authentication endpoints: one for key-based (local) and one for token-based (Entra ID). Disabling local authentication removes the key-based endpoint entirely, so only tokens from Entra ID (obtained via managed identity or service principal) are accepted. The virtual network restriction is applied at the Azure Networking layer using service endpoints or private endpoints, which filter traffic based on source IP or VNet ID. A common real-world scenario is a healthcare application where compliance requires both identity-based access and network isolation to prevent data exfiltration.
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: Disable local authentication, enable managed identity, and configure the virtual network — Option A is correct because it addresses both security requirements: disabling local authentication ensures that API keys cannot be used, forcing all calls to authenticate via Microsoft Entra ID; enabling a managed identity provides a secure identity for the resource to authenticate with Entra ID; and configuring the virtual network restricts network access to the specified VNet, meeting the network restriction policy.
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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