diff --git a/apps/studio/components/ui/AIAssistantPanel/AIAssistant.tsx b/apps/studio/components/ui/AIAssistantPanel/AIAssistant.tsx
index 3eb400a6ecb..26c2a81aef3 100644
--- a/apps/studio/components/ui/AIAssistantPanel/AIAssistant.tsx
+++ b/apps/studio/components/ui/AIAssistantPanel/AIAssistant.tsx
@@ -8,11 +8,14 @@ import { toast } from 'sonner'
 
 import type { Message as MessageType } from 'ai/react'
 import { useChat } from 'ai/react'
+import { useParams } from 'common'
+import { subscriptionHasHipaaAddon } from 'components/interfaces/Billing/Subscription/Subscription.utils'
 import OptInToOpenAIToggle from 'components/interfaces/Organization/GeneralSettings/OptInToOpenAIToggle'
 import { SQL_TEMPLATES } from 'components/interfaces/SQLEditor/SQLEditor.queries'
 import { useCheckOpenAIKeyQuery } from 'data/ai/check-api-key-query'
 import { constructHeaders } from 'data/fetchers'
 import { useOrganizationUpdateMutation } from 'data/organizations/organization-update-mutation'
+import { useOrgSubscriptionQuery } from 'data/subscriptions/org-subscription-query'
 import { useTablesQuery } from 'data/tables/tables-query'
 import { useSendEventMutation } from 'data/telemetry/send-event-mutation'
 import { useCheckPermissions } from 'hooks/misc/useCheckPermissions'
@@ -30,6 +33,7 @@ import {
 } from 'lib/constants'
 import uuidv4 from 'lib/uuid'
 import { useAppStateSnapshot } from 'state/app-state'
+import { useSqlEditorV2StateSnapshot } from 'state/sql-editor-v2'
 import {
   AiIconAnimation,
   Button,
@@ -44,8 +48,6 @@ import ConfirmationModal from 'ui-patterns/Dialogs/ConfirmationModal'
 import AIOnboarding from './AIOnboarding'
 import CollapsibleCodeBlock from './CollapsibleCodeBlock'
 import { Message } from './Message'
-import { getSqlEditorV2StateSnapshot, useSqlEditorV2StateSnapshot } from 'state/sql-editor-v2'
-import { useParams } from 'common'
 
 const MemoizedMessage = memo(({ message }: { message: MessageType }) => {
   return (
@@ -72,6 +74,7 @@ export const AIAssistant = ({ id, className, onResetConversation }: AIAssistantP
   const router = useRouter()
   const project = useSelectedProject()
   const { id: snippetId } = useParams()
+
   const isOptedInToAI = useOrgOptedIntoAi()
   const selectedOrganization = useSelectedOrganization()
   const includeSchemaMetadata = isOptedInToAI || !IS_PLATFORM
@@ -98,6 +101,9 @@ export const AIAssistant = ({ id, className, onResetConversation }: AIAssistantP
   const snippet = snippets[snippetId ?? '']
   const snippetContent = snippet?.snippet?.content?.sql
 
+  const { data: subscription } = useOrgSubscriptionQuery({ orgSlug: selectedOrganization?.slug })
+  const hasHipaaAddon = subscriptionHasHipaaAddon(subscription)
+
   const { data: tables, isLoading: isLoadingTables } = useTablesQuery({
     projectRef: project?.ref,
     connectionString: project?.connectionString,
@@ -122,8 +128,10 @@ export const AIAssistant = ({ id, className, onResetConversation }: AIAssistantP
     id,
     api: `${BASE_PATH}/api/ai/sql/generate-v3`,
     maxSteps: 5,
+    // [Joshen] Not currently used atm, but initialMessages will be for...
     initialMessages: initialMessages as unknown as MessageType[],
     body: {
+      includeSchemaMetadata,
       projectRef: project?.ref,
       connectionString: project?.connectionString,
     },
@@ -297,16 +305,22 @@ export const AIAssistant = ({ id, className, onResetConversation }: AIAssistantP
               <Admonition
                 type="default"
                 title="Project metadata is not shared"
-                description="The Assistant can improve the quality of the answers if you send project metadata along with your prompts. Opt into sending anonymous data to share your schema and table definitions."
+                description={
+                  hasHipaaAddon
+                    ? 'Your organization has the HIPAA addon and will not send any project metadata with your prompts.'
+                    : 'The Assistant can improve the quality of the answers if you send project metadata along with your prompts. Opt into sending anonymous data to share your schema and table definitions.'
+                }
                 className="border-0 border-b rounded-none"
               >
-                <Button
-                  type="default"
-                  className="w-fit mt-4"
-                  onClick={() => setIsConfirmOptInModalOpen(true)}
-                >
-                  Update AI settings
-                </Button>
+                {!hasHipaaAddon && (
+                  <Button
+                    type="default"
+                    className="w-fit mt-4"
+                    onClick={() => setIsConfirmOptInModalOpen(true)}
+                  >
+                    Update AI settings
+                  </Button>
+                )}
               </Admonition>
             )}
           </div>
@@ -468,11 +482,13 @@ export const AIAssistant = ({ id, className, onResetConversation }: AIAssistantP
             </div>
           )}
         </div>
+
         {showFade && (
           <div className="pointer-events-none z-10 -mt-24">
-            <div className="h-24 w-full bg-gradient-to-t from-background muted to-transparent"></div>
+            <div className="h-24 w-full bg-gradient-to-t from-background muted to-transparent" />
           </div>
         )}
+
         <div className="p-5 pt-0 z-20 relative">
           {sqlSnippets && sqlSnippets.length > 0 && (
             <div className="mb-2">
@@ -510,14 +526,19 @@ export const AIAssistant = ({ id, className, onResetConversation }: AIAssistantP
             onValueChange={(e) => setValue(e.target.value)}
             onSubmit={(event) => {
               event.preventDefault()
-              const sqlSnippetsString =
-                sqlSnippets?.map((snippet) => '```sql\n' + snippet + '\n```').join('\n') || ''
-              const valueWithSnippets = [value, sqlSnippetsString].filter(Boolean).join('\n\n')
-              sendMessageToAssistant(valueWithSnippets)
+              if (includeSchemaMetadata) {
+                const sqlSnippetsString =
+                  sqlSnippets?.map((snippet) => '```sql\n' + snippet + '\n```').join('\n') || ''
+                const valueWithSnippets = [value, sqlSnippetsString].filter(Boolean).join('\n\n')
+                sendMessageToAssistant(valueWithSnippets)
+              } else {
+                sendMessageToAssistant(value)
+              }
             }}
           />
         </div>
       </div>
+
       <ConfirmationModal
         visible={isConfirmOptInModalOpen}
         size="large"
diff --git a/apps/studio/hooks/misc/useOrgOptedIntoAi.ts b/apps/studio/hooks/misc/useOrgOptedIntoAi.ts
index 49f2c1ec937..7c1f3522254 100644
--- a/apps/studio/hooks/misc/useOrgOptedIntoAi.ts
+++ b/apps/studio/hooks/misc/useOrgOptedIntoAi.ts
@@ -2,6 +2,11 @@ import { useDisallowHipaa } from 'hooks/misc/useDisallowHipaa'
 import { useSelectedOrganization } from 'hooks/misc/useSelectedOrganization'
 import { OPT_IN_TAGS } from 'lib/constants'
 
+/**
+ * Checks if the organization has opted into sending anonymous data to OpenAI.
+ * Also considers if the organization has the HIPAA addon.
+ * @returns boolean (false if either not opted in or has the HIPAA addon)
+ */
 export function useOrgOptedIntoAi() {
   const selectedOrganization = useSelectedOrganization()
   const optInTags = selectedOrganization?.opt_in_tags
diff --git a/apps/studio/pages/api/ai/sql/generate-v3.ts b/apps/studio/pages/api/ai/sql/generate-v3.ts
index 6b99ab8d1f9..0a704e5ff5b 100644
--- a/apps/studio/pages/api/ai/sql/generate-v3.ts
+++ b/apps/studio/pages/api/ai/sql/generate-v3.ts
@@ -10,7 +10,7 @@ export const maxDuration = 30
 const pgMetaSchemasList = pgMeta.schemas.list()
 
 export default async function handler(req: NextApiRequest, res: NextApiResponse) {
-  const { messages, projectRef, connectionString } = req.body
+  const { messages, projectRef, connectionString, includeSchemaMetadata } = req.body
 
   if (!projectRef) {
     return res.status(400).json({
@@ -20,18 +20,20 @@ export default async function handler(req: NextApiRequest, res: NextApiResponse)
 
   const authorization = req.headers.authorization
 
-  const { result: schemas } = await executeSql(
-    {
-      projectRef,
-      connectionString,
-      sql: pgMetaSchemasList.sql,
-    },
-    undefined,
-    {
-      'Content-Type': 'application/json',
-      ...(authorization && { Authorization: authorization }),
-    }
-  )
+  const { result: schemas } = includeSchemaMetadata
+    ? await executeSql(
+        {
+          projectRef,
+          connectionString,
+          sql: pgMetaSchemasList.sql,
+        },
+        undefined,
+        {
+          'Content-Type': 'application/json',
+          ...(authorization && { Authorization: authorization }),
+        }
+      )
+    : { result: [] }
 
   const result = await streamText({
     model: openai('gpt-4o-mini'),
@@ -80,7 +82,7 @@ export default async function handler(req: NextApiRequest, res: NextApiResponse)
       Here are the existing database schema names you can retrieve: ${schemas}
       `,
     messages,
-    tools: getTools(projectRef, connectionString, authorization),
+    tools: getTools({ projectRef, connectionString, authorization, includeSchemaMetadata }),
   })
 
   // write the data stream to the response
diff --git a/apps/studio/pages/api/ai/sql/tools.ts b/apps/studio/pages/api/ai/sql/tools.ts
index 59bd7d56404..2e2a61fac15 100644
--- a/apps/studio/pages/api/ai/sql/tools.ts
+++ b/apps/studio/pages/api/ai/sql/tools.ts
@@ -1,12 +1,22 @@
-import { z } from 'zod'
 import { tool } from 'ai'
-import { executeSql } from 'data/sql/execute-sql-query'
-import { getEntityDefinitionsQuery } from 'data/database/entity-definitions-query'
-import { getDatabasePolicies } from 'data/database-policies/database-policies-query'
 import { stripIndent } from 'common-tags'
-import { DatabasePoliciesData } from 'data/database-policies/database-policies-query'
+import { z } from 'zod'
 
-export const getTools = (projectRef: string, connectionString: string, authorization?: string) => {
+import { getDatabasePolicies } from 'data/database-policies/database-policies-query'
+import { getEntityDefinitionsQuery } from 'data/database/entity-definitions-query'
+import { executeSql } from 'data/sql/execute-sql-query'
+
+export const getTools = ({
+  projectRef,
+  connectionString,
+  authorization,
+  includeSchemaMetadata,
+}: {
+  projectRef: string
+  connectionString: string
+  authorization?: string
+  includeSchemaMetadata: boolean
+}) => {
   return {
     getSchema: tool({
       description: 'Get more information about one or more schemas',
@@ -14,22 +24,24 @@ export const getTools = (projectRef: string, connectionString: string, authoriza
         schemas: z.array(z.string()).describe('The schema names to get the definitions for'),
       }),
       execute: async ({ schemas }) => {
-        // retrieve schema
         console.log('schema:', schemas)
 
         try {
-          const result = await executeSql(
-            {
-              projectRef,
-              connectionString,
-              sql: getEntityDefinitionsQuery({ schemas }),
-            },
-            undefined,
-            {
-              'Content-Type': 'application/json',
-              ...(authorization && { Authorization: authorization }),
-            }
-          )
+          const result = includeSchemaMetadata
+            ? await executeSql(
+                {
+                  projectRef,
+                  connectionString,
+                  sql: getEntityDefinitionsQuery({ schemas }),
+                },
+                undefined,
+                {
+                  'Content-Type': 'application/json',
+                  ...(authorization && { Authorization: authorization }),
+                }
+              )
+            : { result: [] }
+
           console.log('response2:', result)
           return result
         } catch (error) {
@@ -45,20 +57,23 @@ export const getTools = (projectRef: string, connectionString: string, authoriza
         schemas: z.array(z.string()).describe('The schema names to get the policies for'),
       }),
       execute: async ({ schemas }) => {
-        const data = await getDatabasePolicies(
-          {
-            projectRef,
-            connectionString,
-          },
-          undefined,
-          {
-            'Content-Type': 'application/json',
-            ...(authorization && { Authorization: authorization }),
-          }
-        )
+        const data = includeSchemaMetadata
+          ? await getDatabasePolicies(
+              {
+                projectRef,
+                connectionString,
+              },
+              undefined,
+              {
+                'Content-Type': 'application/json',
+                ...(authorization && { Authorization: authorization }),
+              }
+            )
+          : []
+
         const formattedPolicies = data
           .map(
-            (policy: DatabasePoliciesData) => `
+            (policy) => `
           Policy Name: "${policy.name}"
           Action: ${policy.action}
           Roles: ${policy.roles.join(', ')}
@@ -306,7 +321,7 @@ export const getTools = (projectRef: string, connectionString: string, authoriza
 
           This prevents the policy \`( (select auth.uid()) = user_id )\` from running for any \`anon\` users, since the execution stops at the \`to authenticated\` step.
 
-          Here are my existing policies: ${formattedPolicies}
+          ${data.length > 0 ? `Here are my existing policies: ${formattedPolicies}` : ''}
         `
       },
     }),