Lab Setup

The AI-102 is a hands-on engineering exam. Every challenge requires writing code that calls Azure AI services. Expect to spend $20–50 on Azure resources across all challenges (with diligent cleanup).

Option 1: GitHub Codespaces (Recommended)

The fastest way to get started — everything is pre-installed.

Your Codespace comes pre-configured with:

• Python 3.11+ with Azure AI SDKs
• .NET 8 SDK
• Azure CLI (latest) with AI extensions
• Docker for container-based challenges
• Git and GitHub CLI

GitHub Free accounts get 60 hours/month of Codespaces — more than enough to complete all challenges.

After opening Codespaces, log in to Azure:

# Login to Azure (opens a browser window)
az login --use-device-code

# Verify your subscription
az account show --output table

# Register required resource providers
az provider register --namespace Microsoft.CognitiveServices
az provider register --namespace Microsoft.Search

Option 2: Local Setup

If you prefer to work locally, install these tools:

Tool	Install	Purpose
Azure Subscription	Pay-As-You-Go or MSDN	All labs require billable resources
VS Code	Download	Primary IDE
Python 3.9+	Download	SDK challenges
.NET 8+	Download	C# tab challenges
Azure CLI	Install guide	Resource management
Git	Download	Clone challenge repos
Docker Desktop	Download	Container challenges

VS Code Extensions

Install these extensions for the best experience:

• Python (ms-python.python)
• Azure Tools (ms-vscode.vscode-node-azure-pack)
• Azure AI (ms-azuretools.vscode-ai)
• REST Client (humao.rest-client) — for testing REST API calls
• C# Dev Kit (ms-dotnettools.csdevkit) — if using C#

Verify your setup:

python --version    # 3.9+
dotnet --version    # 8.0+
az --version        # 2.60+
git --version
docker --version

Azure Resource Setup

Step 1: Create a resource group for labs

export LOCATION="eastus"
az group create --name rg-ai102-labs --location $LOCATION

Step 2: Provision Azure AI Services (multi-service resource)

az cognitiveservices account create \
  --name ai102-ai-services \
  --resource-group rg-ai102-labs \
  --kind AIServices \
  --sku S0 \
  --location $LOCATION \
  --yes

Step 3: Set up Azure OpenAI (if access is approved)

az cognitiveservices account create \
  --name ai102-openai \
  --resource-group rg-ai102-labs \
  --kind OpenAI \
  --sku S0 \
  --location swedencentral \
  --yes

Azure OpenAI Access

Azure OpenAI requires an approved access request. Apply at https://aka.ms/oai/access. Approval typically takes 1–2 business days. You can start with Challenges 01–10 while waiting.

Step 4: Save environment variables

# Get your keys and endpoints
export AZURE_AI_SERVICES_ENDPOINT=$(az cognitiveservices account show \
  --name ai102-ai-services --resource-group rg-ai102-labs \
  --query properties.endpoint -o tsv)

export AZURE_AI_SERVICES_KEY=$(az cognitiveservices account keys list \
  --name ai102-ai-services --resource-group rg-ai102-labs \
  --query key1 -o tsv)

echo "Endpoint: $AZURE_AI_SERVICES_ENDPOINT"

Cost Management

Lab Costs

AI-102 challenges create billable resources. Total cost: $20–50 with proper cleanup.

Tip	Details
Use free tiers	Azure AI Services has free-tier limits (20 calls/min for many APIs)
Delete after each challenge	Every challenge includes a cleanup script — run it!
Set budget alerts	Create a $30 budget alert on your resource group
Use S0 tier	Standard tier is pay-per-use — you only pay for calls made
Azure OpenAI	Most expensive service — delete deployments when not in use

Set a budget alert:

# Create a budget with email alert at 80%
az consumption budget create \
  --budget-name ai102-budget \
  --amount 30 \
  --resource-group rg-ai102-labs \
  --time-grain Monthly \
  --category Cost \
  --start-date 2025-01-01 \
  --end-date 2025-12-31

Troubleshooting

Problem	Solution
"Resource provider not registered"	Run az provider register --namespace Microsoft.CognitiveServices
"Azure OpenAI access denied"	Apply at aka.ms/oai/access — use Challenges 01–10 while waiting
"Quota exceeded"	Switch regions or request a quota increase in the Azure Portal
"Python SDK import errors"	Run pip install azure-ai-textanalytics azure-ai-vision-imageanalysis azure-identity
"Region not available"	Use eastus, westus2, or swedencentral (best OpenAI availability)
"Authentication failed"	Run az login again, verify az account show shows correct subscription
"Docker permission denied"	Ensure Docker Desktop is running; on Linux use sudo usermod -aG docker $USER

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Setup complete? Start with Challenge 01: Select and Provision Azure AI Services.