diff --git a/apps/studio/lib/ai/generate-assistant-response.ts b/apps/studio/lib/ai/generate-assistant-response.ts
new file mode 100644
index 00000000000..6cd7881f8eb
--- /dev/null
+++ b/apps/studio/lib/ai/generate-assistant-response.ts
@@ -0,0 +1,127 @@
+import {
+  convertToModelMessages,
+  isToolUIPart,
+  type LanguageModel,
+  type ModelMessage,
+  stepCountIs,
+  streamText,
+  type ToolSet,
+  type UIMessage,
+} from 'ai'
+import { source } from 'common-tags'
+
+import type { AiOptInLevel } from 'hooks/misc/useOrgOptedIntoAi'
+import {
+  CHAT_PROMPT,
+  EDGE_FUNCTION_PROMPT,
+  GENERAL_PROMPT,
+  PG_BEST_PRACTICES,
+  RLS_PROMPT,
+  REALTIME_PROMPT,
+  SECURITY_PROMPT,
+  LIMITATIONS_PROMPT,
+} from 'lib/ai/prompts'
+import { sanitizeMessagePart } from 'lib/ai/tools/tool-sanitizer'
+
+export async function generateAssistantResponse({
+  messages: rawMessages,
+  model,
+  tools,
+  aiOptInLevel = 'schema',
+  getSchemas,
+  projectRef,
+  chatName,
+  promptProviderOptions,
+  providerOptions,
+  abortSignal,
+}: {
+  messages: UIMessage[]
+  model: LanguageModel
+  tools: ToolSet
+  aiOptInLevel?: AiOptInLevel
+  getSchemas?: () => Promise<string>
+  projectRef?: string
+  chatName?: string
+  promptProviderOptions?: Record<string, any>
+  providerOptions?: Record<string, any>
+  abortSignal?: AbortSignal
+}) {
+  // Only returns last 7 messages
+  // Filters out tools with invalid states
+  // Filters out tool outputs based on opt-in level using renderingToolOutputParser
+  const messages = (rawMessages || []).slice(-7).map((msg) => {
+    if (msg && msg.role === 'assistant' && 'results' in msg) {
+      const cleanedMsg = { ...msg }
+      delete cleanedMsg.results
+      return cleanedMsg
+    }
+    if (msg && msg.role === 'assistant' && msg.parts) {
+      const cleanedParts = msg.parts
+        .filter((part) => {
+          if (isToolUIPart(part)) {
+            const invalidStates = ['input-streaming', 'input-available', 'output-error']
+            return !invalidStates.includes(part.state)
+          }
+          return true
+        })
+        .map((part) => {
+          return sanitizeMessagePart(part, aiOptInLevel)
+        })
+      return { ...msg, parts: cleanedParts }
+    }
+    return msg
+  })
+
+  const schemasString =
+    aiOptInLevel !== 'disabled' && getSchemas
+      ? await getSchemas()
+      : "You don't have access to any schemas."
+
+  // Important: do not use dynamic content in the system prompt or Bedrock will not cache it
+  const system = source`
+    ${GENERAL_PROMPT}
+    ${CHAT_PROMPT}
+    ${PG_BEST_PRACTICES}
+    ${RLS_PROMPT}
+    ${EDGE_FUNCTION_PROMPT}
+    ${REALTIME_PROMPT}
+    ${SECURITY_PROMPT}
+    ${LIMITATIONS_PROMPT}
+  `
+
+  // Note: these must be of type `CoreMessage` to prevent AI SDK from stripping `providerOptions`
+  // https://github.com/vercel/ai/blob/81ef2511311e8af34d75e37fc8204a82e775e8c3/packages/ai/core/prompt/standardize-prompt.ts#L83-L88
+  const assistantContent =
+    projectRef || chatName || schemasString !== "You don't have access to any schemas."
+      ? `The user's current project is ${projectRef || 'unknown'}. Their available schemas are: ${schemasString}. The current chat name is: ${chatName || 'unnamed'}`
+      : undefined
+
+  const coreMessages: ModelMessage[] = [
+    {
+      role: 'system',
+      content: system,
+      ...(promptProviderOptions && {
+        providerOptions: promptProviderOptions,
+      }),
+    },
+    ...(assistantContent
+      ? [
+          {
+            role: 'assistant' as const,
+            // Add any dynamic context here
+            content: assistantContent,
+          },
+        ]
+      : []),
+    ...convertToModelMessages(messages),
+  ]
+
+  return streamText({
+    model,
+    stopWhen: stepCountIs(5),
+    messages: coreMessages,
+    ...(providerOptions && { providerOptions }),
+    tools,
+    ...(abortSignal && { abortSignal }),
+  })
+}
diff --git a/apps/studio/pages/api/ai/sql/generate-v4.ts b/apps/studio/pages/api/ai/sql/generate-v4.ts
index de6672ea412..466734aa823 100644
--- a/apps/studio/pages/api/ai/sql/generate-v4.ts
+++ b/apps/studio/pages/api/ai/sql/generate-v4.ts
@@ -1,36 +1,15 @@
 import pgMeta from '@supabase/pg-meta'
-import {
-  convertToModelMessages,
-  generateText,
-  isToolUIPart,
-  type LanguageModel,
-  type ModelMessage,
-  stepCountIs,
-  streamText,
-  type ToolSet,
-  type UIMessage,
-} from 'ai'
-import { source } from 'common-tags'
 import type { NextApiRequest, NextApiResponse } from 'next'
 import z from 'zod'
 
 import { IS_PLATFORM } from 'common'
 import { executeSql } from 'data/sql/execute-sql-query'
+import type { UIMessage } from 'ai'
 import type { AiOptInLevel } from 'hooks/misc/useOrgOptedIntoAi'
 import { getModel } from 'lib/ai/model'
 import { getOrgAIDetails } from 'lib/ai/org-ai-details'
-import {
-  CHAT_PROMPT,
-  EDGE_FUNCTION_PROMPT,
-  GENERAL_PROMPT,
-  PG_BEST_PRACTICES,
-  RLS_PROMPT,
-  REALTIME_PROMPT,
-  SECURITY_PROMPT,
-  LIMITATIONS_PROMPT,
-} from 'lib/ai/prompts'
+import { generateAssistantResponse } from 'lib/ai/generate-assistant-response'
 import { getTools } from 'lib/ai/tools'
-import { sanitizeMessagePart } from 'lib/ai/tools/tool-sanitizer'
 import apiWrapper from 'lib/api/apiWrapper'
 import { executeQuery } from 'lib/api/self-hosted/query'
 
@@ -64,109 +43,6 @@ const wrapper = (req: NextApiRequest, res: NextApiResponse) =>
 
 export default wrapper
 
-export async function generateAssistantResponse({
-  messages: rawMessages,
-  model,
-  tools,
-  aiOptInLevel = 'schema',
-  getSchemas,
-  projectRef,
-  chatName,
-  promptProviderOptions,
-  providerOptions,
-  abortSignal,
-}: {
-  messages: UIMessage[]
-  model: LanguageModel
-  tools: ToolSet
-  aiOptInLevel?: AiOptInLevel
-  getSchemas?: () => Promise<string>
-  projectRef?: string
-  chatName?: string
-  promptProviderOptions?: Record<string, any>
-  providerOptions?: Record<string, any>
-  abortSignal?: AbortSignal
-}) {
-  // Only returns last 7 messages
-  // Filters out tools with invalid states
-  // Filters out tool outputs based on opt-in level using renderingToolOutputParser
-  const messages = (rawMessages || []).slice(-7).map((msg) => {
-    if (msg && msg.role === 'assistant' && 'results' in msg) {
-      const cleanedMsg = { ...msg }
-      delete cleanedMsg.results
-      return cleanedMsg
-    }
-    if (msg && msg.role === 'assistant' && msg.parts) {
-      const cleanedParts = msg.parts
-        .filter((part) => {
-          if (isToolUIPart(part)) {
-            const invalidStates = ['input-streaming', 'input-available', 'output-error']
-            return !invalidStates.includes(part.state)
-          }
-          return true
-        })
-        .map((part) => {
-          return sanitizeMessagePart(part, aiOptInLevel)
-        })
-      return { ...msg, parts: cleanedParts }
-    }
-    return msg
-  })
-
-  const schemasString =
-    aiOptInLevel !== 'disabled' && getSchemas
-      ? await getSchemas()
-      : "You don't have access to any schemas."
-
-  // Important: do not use dynamic content in the system prompt or Bedrock will not cache it
-  const system = source`
-    ${GENERAL_PROMPT}
-    ${CHAT_PROMPT}
-    ${PG_BEST_PRACTICES}
-    ${RLS_PROMPT}
-    ${EDGE_FUNCTION_PROMPT}
-    ${REALTIME_PROMPT}
-    ${SECURITY_PROMPT}
-    ${LIMITATIONS_PROMPT}
-  `
-
-  // Note: these must be of type `CoreMessage` to prevent AI SDK from stripping `providerOptions`
-  // https://github.com/vercel/ai/blob/81ef2511311e8af34d75e37fc8204a82e775e8c3/packages/ai/core/prompt/standardize-prompt.ts#L83-L88
-  const assistantContent =
-    projectRef || chatName || schemasString !== "You don't have access to any schemas."
-      ? `The user's current project is ${projectRef || 'unknown'}. Their available schemas are: ${schemasString}. The current chat name is: ${chatName || 'unnamed'}`
-      : undefined
-
-  const coreMessages: ModelMessage[] = [
-    {
-      role: 'system',
-      content: system,
-      ...(promptProviderOptions && {
-        providerOptions: promptProviderOptions,
-      }),
-    },
-    ...(assistantContent
-      ? [
-          {
-            role: 'assistant' as const,
-            // Add any dynamic context here
-            content: assistantContent,
-          },
-        ]
-      : []),
-    ...convertToModelMessages(messages),
-  ]
-
-  return streamText({
-    model,
-    stopWhen: stepCountIs(5),
-    messages: coreMessages,
-    ...(providerOptions && { providerOptions }),
-    tools,
-    ...(abortSignal && { abortSignal }),
-  })
-}
-
 const requestBodySchema = z.object({
   messages: z.array(z.custom<UIMessage>()),
   projectRef: z.string(),