diff --git a/apps/studio/components/interfaces/App/FeaturePreview/FeaturePreviewModal.tsx b/apps/studio/components/interfaces/App/FeaturePreview/FeaturePreviewModal.tsx
index 01cbee09063..e7c264fb0d9 100644
--- a/apps/studio/components/interfaces/App/FeaturePreview/FeaturePreviewModal.tsx
+++ b/apps/studio/components/interfaces/App/FeaturePreview/FeaturePreviewModal.tsx
@@ -7,6 +7,7 @@ import { useAppStateSnapshot } from 'state/app-state'
 import { Badge, Button, Modal, ScrollArea, cn } from 'ui'
 import { FEATURE_PREVIEWS, useFeaturePreviewContext } from './FeaturePreviewContext'
 import { useFlag } from 'hooks/ui/useFlag'
+import { LOCAL_STORAGE_KEYS } from 'lib/constants'
 
 const FeaturePreviewModal = () => {
   const snap = useAppStateSnapshot()
@@ -40,6 +41,13 @@ const FeaturePreviewModal = () => {
       action: isSelectedFeatureEnabled ? 'disabled' : 'enabled',
       label: selectedFeatureKey,
     })
+
+    if (
+      selectedFeatureKey === LOCAL_STORAGE_KEYS.UI_PREVIEW_FUNCTIONS_ASSISTANT &&
+      isSelectedFeatureEnabled
+    ) {
+      snap.setAiAssistantPanel({ open: false })
+    }
   }
 
   function handleCloseFeaturePreviewModal() {
diff --git a/apps/studio/components/interfaces/SQLEditor/AiAssistantPanel/index.tsx b/apps/studio/components/interfaces/SQLEditor/AiAssistantPanel/index.tsx
index 994de7cb037..c66c6f3b77f 100644
--- a/apps/studio/components/interfaces/SQLEditor/AiAssistantPanel/index.tsx
+++ b/apps/studio/components/interfaces/SQLEditor/AiAssistantPanel/index.tsx
@@ -94,15 +94,18 @@ export const AiAssistantPanel = ({
   // Use chat id because useChat doesn't have a reset function to clear all messages
   const {
     messages: chatMessages,
-    append,
     isLoading,
+    append,
   } = useChat({
     id: chatId,
     api: `${BASE_PATH}/api/ai/sql/generate-v2`,
     body: {
-      existingSql: existingSql,
+      existingSql,
       entityDefinitions: entityDefinitions,
     },
+    onError: (error) => {
+      console.log('Boom: ', error)
+    },
   })
   const messages = useMemo(() => {
     const merged = [...chatMessages.map((m) => ({ ...m, isDebug: false }))]
diff --git a/apps/studio/middleware.ts b/apps/studio/middleware.ts
index 3c10430f71e..eb510b1988a 100644
--- a/apps/studio/middleware.ts
+++ b/apps/studio/middleware.ts
@@ -10,6 +10,9 @@ const HOSTED_SUPPORTED_API_URLS = [
   '/ai/sql/suggest',
   '/ai/sql/generate-v2',
   '/ai/sql/generate-v3',
+  '/ai/sql/title',
+  '/ai/sql/debug',
+  '/ai/sql/cron',
   '/get-ip-address',
 ]
 
diff --git a/apps/studio/pages/api/ai/sql/generate-v2.ts b/apps/studio/pages/api/ai/sql/generate-v2.ts
index c1d55f7666b..c3e8e8d7fdf 100644
--- a/apps/studio/pages/api/ai/sql/generate-v2.ts
+++ b/apps/studio/pages/api/ai/sql/generate-v2.ts
@@ -1,6 +1,7 @@
 import { StreamingTextResponse } from 'ai'
-import { chatSql } from 'ai-commands/edge'
+import { chatRlsPolicy, chatSql } from 'ai-commands/edge'
 import { SupportedAssistantEntities } from 'components/ui/AIAssistantPanel/AIAssistant.types'
+import { DatabasePoliciesData } from 'data/database-policies/database-policies-query'
 import { NextRequest } from 'next/server'
 import OpenAI from 'openai'
 
@@ -8,7 +9,7 @@ export const config = {
   runtime: 'edge',
   /* To avoid OpenAI errors, restrict to the Vercel Edge Function regions that
   overlap with the OpenAI API regions.
-
+  
   Reference for Vercel regions: https://vercel.com/docs/edge-network/regions#region-list
   Reference for OpenAI regions: https://help.openai.com/en/articles/5347006-openai-api-supported-countries-and-territories
   */
@@ -68,17 +69,29 @@ async function handlePost(request: NextRequest) {
   const openai = new OpenAI({ apiKey: openAiKey })
 
   const body = await (request.json() as Promise<{
+    context?: SupportedAssistantEntities
     messages: { content: string; role: 'user' | 'assistant' }[]
     existingSql?: string
     entityDefinitions: string[]
-    context?: SupportedAssistantEntities
+    existingPolicies?: DatabasePoliciesData
   }>)
 
-  const { messages, existingSql, entityDefinitions, context } = body
+  const { messages, existingSql, entityDefinitions, context, existingPolicies } = body
 
   try {
-    const stream = await chatSql(openai, messages, existingSql, entityDefinitions, context)
-    return new StreamingTextResponse(stream)
+    if (context === 'rls-policies') {
+      const stream = await chatRlsPolicy(
+        openai,
+        messages,
+        entityDefinitions,
+        existingPolicies ?? [],
+        existingSql
+      )
+      return new StreamingTextResponse(stream)
+    } else {
+      const stream = await chatSql(openai, messages, existingSql, entityDefinitions, context)
+      return new StreamingTextResponse(stream)
+    }
   } catch (error) {
     if (error instanceof Error) {
       console.error(`AI SQL generation-v2 failed: ${error.message}`)
@@ -86,14 +99,9 @@ async function handlePost(request: NextRequest) {
       console.error(`AI SQL generation-v2 failed: ${error}`)
     }
 
-    return new Response(
-      JSON.stringify({
-        error: 'There was an error processing your request',
-      }),
-      {
-        status: 500,
-        headers: { 'Content-Type': 'application/json' },
-      }
-    )
+    return new Response(JSON.stringify({ error: 'There was an error processing your request' }), {
+      status: 500,
+      headers: { 'Content-Type': 'application/json' },
+    })
   }
 }
diff --git a/apps/studio/pages/api/ai/sql/generate-v3.ts b/apps/studio/pages/api/ai/sql/generate-v3.ts
index 0a704e5ff5b..117c7902086 100644
--- a/apps/studio/pages/api/ai/sql/generate-v3.ts
+++ b/apps/studio/pages/api/ai/sql/generate-v3.ts
@@ -6,10 +6,39 @@ import { executeSql } from 'data/sql/execute-sql-query'
 import { NextApiRequest, NextApiResponse } from 'next'
 
 export const maxDuration = 30
-
+const openAiKey = process.env.OPENAI_API_KEY
 const pgMetaSchemasList = pgMeta.schemas.list()
 
 export default async function handler(req: NextApiRequest, res: NextApiResponse) {
+  if (!openAiKey) {
+    return new Response(
+      JSON.stringify({
+        error: 'No OPENAI_API_KEY set. Create this environment variable to use AI features.',
+      }),
+      {
+        status: 500,
+        headers: { 'Content-Type': 'application/json' },
+      }
+    )
+  }
+
+  const { method } = req
+
+  switch (method) {
+    case 'POST':
+      return handlePost(req, res)
+    default:
+      return new Response(
+        JSON.stringify({ data: null, error: { message: `Method ${method} Not Allowed` } }),
+        {
+          status: 405,
+          headers: { 'Content-Type': 'application/json', Allow: 'POST' },
+        }
+      )
+  }
+}
+
+async function handlePost(req: NextApiRequest, res: NextApiResponse) {
   const { messages, projectRef, connectionString, includeSchemaMetadata } = req.body
 
   if (!projectRef) {
diff --git a/apps/studio/pages/project/[ref]/auth/policies.tsx b/apps/studio/pages/project/[ref]/auth/policies.tsx
index 3cba1b29e97..80dc8d97269 100644
--- a/apps/studio/pages/project/[ref]/auth/policies.tsx
+++ b/apps/studio/pages/project/[ref]/auth/policies.tsx
@@ -22,6 +22,7 @@ import type { NextPageWithLayout } from 'types'
 import { Button, Input } from 'ui'
 import { DocsButton } from 'components/ui/DocsButton'
 import { useAppStateSnapshot } from 'state/app-state'
+import { useIsDatabaseFunctionsAssistantEnabled } from 'components/interfaces/App/FeaturePreview/FeaturePreviewContext'
 
 /**
  * Filter tables by table name and policy name
@@ -65,6 +66,7 @@ const AuthPoliciesPage: NextPageWithLayout = () => {
   }>()
   const { schema = 'public', search: searchString = '' } = params
   const { project } = useProjectContext()
+  const isAssistantV2Enabled = useIsDatabaseFunctionsAssistantEnabled()
   const { setAiAssistantPanel, aiAssistantPanel } = useAppStateSnapshot()
 
   const [selectedTable, setSelectedTable] = useState<string>()
@@ -150,10 +152,15 @@ const AuthPoliciesPage: NextPageWithLayout = () => {
           hasTables={tables.length > 0}
           isLocked={isLocked}
           onSelectCreatePolicy={(table: string) => {
-            setAiAssistantPanel({
-              open: true,
-              initialInput: `Help me create an RLS policy for the table ${table} on the ${schema} schema`,
-            })
+            if (isAssistantV2Enabled) {
+              setAiAssistantPanel({
+                open: true,
+                initialInput: `Help me create an RLS policy for the table ${table} on the ${schema} schema`,
+              })
+            } else {
+              setSelectedTable(table)
+              setShowPolicyAiEditor(true)
+            }
           }}
           onSelectEditPolicy={(policy) => {
             setSelectedPolicyToEdit(policy)
diff --git a/package-lock.json b/package-lock.json
index 226d5f6f4f4..9f3795ae99f 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -18552,44 +18552,6 @@
         "node": ">=8"
       }
     },
-    "node_modules/ai": {
-      "version": "2.2.37",
-      "resolved": "https://registry.npmjs.org/ai/-/ai-2.2.37.tgz",
-      "integrity": "sha512-JIYm5N1muGVqBqWnvkt29FmXhESoO5TcDxw74OE41SsM+uIou6NPDDs0XWb/ABcd1gmp6k5zym64KWMPM2xm0A==",
-      "license": "Apache-2.0",
-      "dependencies": {
-        "eventsource-parser": "1.0.0",
-        "nanoid": "3.3.6",
-        "solid-swr-store": "0.10.7",
-        "sswr": "2.0.0",
-        "swr": "2.2.0",
-        "swr-store": "0.10.6",
-        "swrv": "1.0.4"
-      },
-      "engines": {
-        "node": ">=14.6"
-      },
-      "peerDependencies": {
-        "react": "^18.2.0",
-        "solid-js": "^1.7.7",
-        "svelte": "^3.0.0 || ^4.0.0",
-        "vue": "^3.3.4"
-      },
-      "peerDependenciesMeta": {
-        "react": {
-          "optional": true
-        },
-        "solid-js": {
-          "optional": true
-        },
-        "svelte": {
-          "optional": true
-        },
-        "vue": {
-          "optional": true
-        }
-      }
-    },
     "node_modules/ai-commands": {
       "resolved": "packages/ai-commands",
       "link": true
@@ -23205,14 +23167,6 @@
         "node": ">=0.8.x"
       }
     },
-    "node_modules/eventsource-parser": {
-      "version": "1.0.0",
-      "resolved": "https://registry.npmjs.org/eventsource-parser/-/eventsource-parser-1.0.0.tgz",
-      "integrity": "sha512-9jgfSCa3dmEme2ES3mPByGXfgZ87VbP97tng1G2nWwWx6bV2nYxm2AWCrbQjXToSe+yYlqaZNtxffR9IeQr95g==",
-      "engines": {
-        "node": ">=14.18"
-      }
-    },
     "node_modules/execa": {
       "version": "5.1.1",
       "dev": true,
@@ -39640,6 +39594,7 @@
       "version": "0.14.1",
       "resolved": "https://registry.npmjs.org/seroval/-/seroval-0.14.1.tgz",
       "integrity": "sha512-ZlC9y1KVDhZFdEHLYZup1RjKDutyX1tt3ffOauqRbRURa2vRr2NU/bHuVEuNEqR3zE2uCU3WM6LqH6Oinc3tWg==",
+      "optional": true,
       "peer": true,
       "engines": {
         "node": ">=10"
@@ -40083,24 +40038,13 @@
       "version": "1.8.6",
       "resolved": "https://registry.npmjs.org/solid-js/-/solid-js-1.8.6.tgz",
       "integrity": "sha512-yiH6ZfBBZ3xj/aU/PBpVKB+8r8WWp100NGF7k/Z0IrK9Y8Lv0jwvFiJY1cHdc6Tj7GqXArKnMBabM0m1k+LzkA==",
+      "optional": true,
       "peer": true,
       "dependencies": {
         "csstype": "^3.1.0",
         "seroval": "^0.14.1"
       }
     },
-    "node_modules/solid-swr-store": {
-      "version": "0.10.7",
-      "resolved": "https://registry.npmjs.org/solid-swr-store/-/solid-swr-store-0.10.7.tgz",
-      "integrity": "sha512-A6d68aJmRP471aWqKKPE2tpgOiR5fH4qXQNfKIec+Vap+MGQm3tvXlT8n0I8UgJSlNAsSAUuw2VTviH2h3Vv5g==",
-      "engines": {
-        "node": ">=10"
-      },
-      "peerDependencies": {
-        "solid-js": "^1.2",
-        "swr-store": "^0.10"
-      }
-    },
     "node_modules/sonner": {
       "version": "1.5.0",
       "resolved": "https://registry.npmjs.org/sonner/-/sonner-1.5.0.tgz",
@@ -40256,17 +40200,6 @@
         "node": "^14.17.0 || ^16.13.0 || >=18.0.0"
       }
     },
-    "node_modules/sswr": {
-      "version": "2.0.0",
-      "resolved": "https://registry.npmjs.org/sswr/-/sswr-2.0.0.tgz",
-      "integrity": "sha512-mV0kkeBHcjcb0M5NqKtKVg/uTIYNlIIniyDfSGrSfxpEdM9C365jK0z55pl9K0xAkNTJi2OAOVFQpgMPUk+V0w==",
-      "dependencies": {
-        "swrev": "^4.0.0"
-      },
-      "peerDependencies": {
-        "svelte": "^4.0.0"
-      }
-    },
     "node_modules/stack-generator": {
       "version": "2.0.10",
       "resolved": "https://registry.npmjs.org/stack-generator/-/stack-generator-2.0.10.tgz",
@@ -41302,28 +41235,6 @@
         "node": ">= 4.7.0"
       }
     },
-    "node_modules/swr": {
-      "version": "2.2.0",
-      "resolved": "https://registry.npmjs.org/swr/-/swr-2.2.0.tgz",
-      "integrity": "sha512-AjqHOv2lAhkuUdIiBu9xbuettzAzWXmCEcLONNKJRba87WAefz8Ca9d6ds/SzrPc235n1IxWYdhJ2zF3MNUaoQ==",
-      "dependencies": {
-        "use-sync-external-store": "^1.2.0"
-      },
-      "peerDependencies": {
-        "react": "^16.11.0 || ^17.0.0 || ^18.0.0"
-      }
-    },
-    "node_modules/swr-store": {
-      "version": "0.10.6",
-      "resolved": "https://registry.npmjs.org/swr-store/-/swr-store-0.10.6.tgz",
-      "integrity": "sha512-xPjB1hARSiRaNNlUQvWSVrG5SirCjk2TmaUyzzvk69SZQan9hCJqw/5rG9iL7xElHU784GxRPISClq4488/XVw==",
-      "dependencies": {
-        "dequal": "^2.0.3"
-      },
-      "engines": {
-        "node": ">=10"
-      }
-    },
     "node_modules/swrev": {
       "version": "4.0.0",
       "resolved": "https://registry.npmjs.org/swrev/-/swrev-4.0.0.tgz",
@@ -45151,7 +45062,7 @@
       "dependencies": {
         "@serafin/schema-builder": "^0.18.5",
         "@supabase/supabase-js": "*",
-        "ai": "^2.2.29",
+        "ai": "^3.4.33",
         "common-tags": "^1.8.2",
         "config": "*",
         "js-tiktoken": "^1.0.10",
@@ -45159,6 +45070,7 @@
         "openai": "^4.26.1"
       },
       "devDependencies": {
+        "@ai-sdk/openai": "^0.0.72",
         "@babel/core": "^7.23.6",
         "@babel/preset-env": "^7.23.6",
         "@jest/globals": "^29.7.0",
@@ -45177,6 +45089,82 @@
         "typescript": "~5.5.0"
       }
     },
+    "packages/ai-commands/node_modules/@opentelemetry/api": {
+      "version": "1.9.0",
+      "resolved": "https://registry.npmjs.org/@opentelemetry/api/-/api-1.9.0.tgz",
+      "integrity": "sha512-3giAOQvZiH5F9bMlMiv8+GSPMeqg0dbaeo58/0SlA9sxSqZhnUtxzX9/2FzyhS9sWQf5S0GJE0AKBrFqjpeYcg==",
+      "engines": {
+        "node": ">=8.0.0"
+      }
+    },
+    "packages/ai-commands/node_modules/ai": {
+      "version": "3.4.33",
+      "resolved": "https://registry.npmjs.org/ai/-/ai-3.4.33.tgz",
+      "integrity": "sha512-plBlrVZKwPoRTmM8+D1sJac9Bq8eaa2jiZlHLZIWekKWI1yMWYZvCCEezY9ASPwRhULYDJB2VhKOBUUeg3S5JQ==",
+      "dependencies": {
+        "@ai-sdk/provider": "0.0.26",
+        "@ai-sdk/provider-utils": "1.0.22",
+        "@ai-sdk/react": "0.0.70",
+        "@ai-sdk/solid": "0.0.54",
+        "@ai-sdk/svelte": "0.0.57",
+        "@ai-sdk/ui-utils": "0.0.50",
+        "@ai-sdk/vue": "0.0.59",
+        "@opentelemetry/api": "1.9.0",
+        "eventsource-parser": "1.1.2",
+        "json-schema": "^0.4.0",
+        "jsondiffpatch": "0.6.0",
+        "secure-json-parse": "^2.7.0",
+        "zod-to-json-schema": "^3.23.3"
+      },
+      "engines": {
+        "node": ">=18"
+      },
+      "peerDependencies": {
+        "openai": "^4.42.0",
+        "react": "^18 || ^19 || ^19.0.0-rc",
+        "sswr": "^2.1.0",
+        "svelte": "^3.0.0 || ^4.0.0 || ^5.0.0",
+        "zod": "^3.0.0"
+      },
+      "peerDependenciesMeta": {
+        "openai": {
+          "optional": true
+        },
+        "react": {
+          "optional": true
+        },
+        "sswr": {
+          "optional": true
+        },
+        "svelte": {
+          "optional": true
+        },
+        "zod": {
+          "optional": true
+        }
+      }
+    },
+    "packages/ai-commands/node_modules/ai/node_modules/@ai-sdk/vue": {
+      "version": "0.0.59",
+      "resolved": "https://registry.npmjs.org/@ai-sdk/vue/-/vue-0.0.59.tgz",
+      "integrity": "sha512-+ofYlnqdc8c4F6tM0IKF0+7NagZRAiqBJpGDJ+6EYhDW8FHLUP/JFBgu32SjxSxC6IKFZxEnl68ZoP/Z38EMlw==",
+      "dependencies": {
+        "@ai-sdk/provider-utils": "1.0.22",
+        "@ai-sdk/ui-utils": "0.0.50",
+        "swrv": "^1.0.4"
+      },
+      "engines": {
+        "node": ">=18"
+      },
+      "peerDependencies": {
+        "vue": "^3.3.4"
+      },
+      "peerDependenciesMeta": {
+        "vue": {
+          "optional": true
+        }
+      }
+    },
     "packages/ai-commands/node_modules/argparse": {
       "version": "2.0.1",
       "resolved": "https://registry.npmjs.org/argparse/-/argparse-2.0.1.tgz",
@@ -45195,6 +45183,14 @@
         "url": "https://github.com/chalk/chalk?sponsor=1"
       }
     },
+    "packages/ai-commands/node_modules/eventsource-parser": {
+      "version": "1.1.2",
+      "resolved": "https://registry.npmjs.org/eventsource-parser/-/eventsource-parser-1.1.2.tgz",
+      "integrity": "sha512-v0eOBUbiaFojBu2s2NPBfYUoRR9GjcDNvCXVaqEf5vVfpIAh9f8RCo4vXTP8c63QRKCFwoLpMpTdPwwhEKVgzA==",
+      "engines": {
+        "node": ">=14.18"
+      }
+    },
     "packages/ai-commands/node_modules/sql-formatter": {
       "version": "15.0.2",
       "resolved": "https://registry.npmjs.org/sql-formatter/-/sql-formatter-15.0.2.tgz",
@@ -45209,6 +45205,19 @@
         "sql-formatter": "bin/sql-formatter-cli.cjs"
       }
     },
+    "packages/ai-commands/node_modules/sswr": {
+      "version": "2.1.0",
+      "resolved": "https://registry.npmjs.org/sswr/-/sswr-2.1.0.tgz",
+      "integrity": "sha512-Cqc355SYlTAaUt8iDPaC/4DPPXK925PePLMxyBKuWd5kKc5mwsG3nT9+Mq2tyguL5s7b4Jg+IRMpTRsNTAfpSQ==",
+      "optional": true,
+      "peer": true,
+      "dependencies": {
+        "swrev": "^4.0.0"
+      },
+      "peerDependencies": {
+        "svelte": "^4.0.0 || ^5.0.0-next.0"
+      }
+    },
     "packages/api-types": {
       "version": "0.0.0",
       "license": "MIT",
diff --git a/packages/ai-commands/package.json b/packages/ai-commands/package.json
index 49d84317fc5..4a8efe0ad86 100644
--- a/packages/ai-commands/package.json
+++ b/packages/ai-commands/package.json
@@ -13,7 +13,7 @@
   "dependencies": {
     "@serafin/schema-builder": "^0.18.5",
     "@supabase/supabase-js": "*",
-    "ai": "^2.2.29",
+    "ai": "^3.4.33",
     "common-tags": "^1.8.2",
     "config": "*",
     "js-tiktoken": "^1.0.10",
@@ -22,6 +22,7 @@
   },
   "devDependencies": {
     "api-types": "*",
+    "@ai-sdk/openai": "^0.0.72",
     "@babel/core": "^7.23.6",
     "@babel/preset-env": "^7.23.6",
     "@jest/globals": "^29.7.0",
diff --git a/packages/ai-commands/src/sql/chat.ts b/packages/ai-commands/src/sql/chat.ts
index cc38825a598..426d9f8f617 100644
--- a/packages/ai-commands/src/sql/chat.ts
+++ b/packages/ai-commands/src/sql/chat.ts
@@ -25,8 +25,6 @@ export async function chatSql(
       - Always use semicolons
       - Output as markdown
       - Always include code snippets if available
-      - If a code snippet is SQL, the first line of the snippet should always be -- props: {"title": "Query title", "isChart": "true", "xAxis": "columnName", "yAxis": "columnName"}
-      - Explain what the snippet does in a sentence or two before showing it
       - Use vector(384) data type for any embedding/vector related query
 
       When generating tables, do the following:
@@ -45,6 +43,8 @@ export async function chatSql(
     // is definitely not optimal at all, but just to get an idea started
     const generateInstructionsBasedOnContext = () => {
       switch (context) {
+        // [Joshen] Sorry for the mess, there's duplicate logic here between this and rls.ts - i'm wondering what should be the best practice
+        // here? Do we (1) Put ALL logic into this file, or (2) we split each context into their own files? Latter might be cleaner?
         case 'rls-policies':
           return stripIndent`
           You're a Supabase Postgres expert in writing row level security policies. Your purpose is to