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### Hands-On Activity: Build a Basic AI-Powered Chatbot with Azure OpenAI Studio
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**Time:** 15 min
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**Objective:**
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Use Azure OpenAI Studio to create a simple AI-powered chatbot that can handle basic user queries. This activity sets the foundation for building more advanced dialogue systems in later modules.
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**Materials Needed:**
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**Materials needed:**
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- Laptop or desktop with internet access
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- Azure OpenAI Studio access
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- An Azure account with OpenAI resources enabled
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### Part 1: Create a Prompt-Based Chatbot in Azure OpenAI Studio
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## Part 1: Create a prompt-based chatbot in Azure OpenAI Studio
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1. **Log into Azure OpenAI Studio**
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- Go to [Azure OpenAI Studio](https://oai.azure.com/) and sign in using your Azure credentials.
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2. **Start a New Chat Deployment**
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2. **Start a new chat deployment**
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- Select a GPT model (such as `gpt-35-turbo`) and open a new chat playground session.
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3. **Design Your Prompt Template**
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- Enter a system message that guides the chatbots behavior.
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3. **Design your prompt template**
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- Enter a system message that guides the chatbot's behavior.
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Example:
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*You are a friendly customer support bot for a fictional online bookstore. Answer questions about orders, shipping times, and return policies.*
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*"You are a friendly customer support bot for a fictional online bookstore. Answer questions about orders, shipping times, and return policies."*
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4. **Test Basic Queries**
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4. **Test basic queries**
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- Try 3–4 user prompts such as:
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- Wheres my order?
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- How long does shipping take?
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- Can I return a book Ive already opened?
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- Refine your system prompt if the chatbots responses are too vague or stray off-topic.
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- "Where's my order?"
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- "How long does shipping take?"
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- "Can I return a book I've already opened?"
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- Refine your system prompt if the chatbot's responses are too vague or stray off-topic.
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### Part 2: Reflect and Extend
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## Part 2: Reflect and extend
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1. **Review Chat Flow and Output Quality**
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1. **Review chat flow and output quality**
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- Does the chatbot give helpful, accurate, and relevant answers?
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- How well does it stay in character (for example, friendly and professional)?
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- What happens if the user asks an unexpected or off-topic question?
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2. **Iterate on Your Prompt**
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2. **Iterate on your prompt**
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- Add follow-up instructions to adjust tone, set boundaries, or clarify scope.
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Examples:
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- Make responses more concise.
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- Avoid answering questions outside of bookstore topics.
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- Add empathy if the user seems frustrated.
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- "Make responses more concise."
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- "Avoid answering questions outside of bookstore topics."
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- "Add empathy if the user seems frustrated."
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3. **Optional: Add User Memory (Advanced Preview)**
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3. **Optional: Add user memory (advanced preview)**
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- Experiment with short-term memory by summarizing user input or keeping context through prompt chaining (covered in later lessons).
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**Expected Outcome:**
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## Expected outcome
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Learners build a basic, prompt-driven chatbot using Azure OpenAI Studio. They learn how to guide tone and behavior through system prompts and test how the model responds to different user inputs. This hands-on experience lays the groundwork for developing more interactive and dynamic dialogue systems in upcoming modules.

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