diff --git a/apps/frontend/src/components/ai/AIChat.tsx b/apps/frontend/src/components/ai/AIChat.tsx
new file mode 100644
index 00000000..d4f73a2e
--- /dev/null
+++ b/apps/frontend/src/components/ai/AIChat.tsx
@@ -0,0 +1,232 @@
+import { useState, useRef, useEffect, FormEvent } from 'react';
+import { Send, Trash2, Settings2, Loader2 } from 'lucide-react';
+import clsx from 'clsx';
+import { ChatMessage, ChatMessageProps } from './ChatMessage';
+import { useAIChat, useAIConfig, useAIModels } from '@/hooks/useAI';
+import { ChatMessage as ChatMessageType } from '@/services/api';
+
+interface Message extends ChatMessageProps {
+  id: string;
+}
+
+interface AIChatProps {
+  systemPrompt?: string;
+  placeholder?: string;
+  className?: string;
+  showModelSelector?: boolean;
+  onUsageUpdate?: () => void;
+}
+
+export function AIChat({
+  systemPrompt,
+  placeholder = 'Type your message...',
+  className,
+  showModelSelector = false,
+  onUsageUpdate,
+}: AIChatProps) {
+  const [messages, setMessages] = useState<Message[]>([]);
+  const [input, setInput] = useState('');
+  const [selectedModel, setSelectedModel] = useState<string | undefined>();
+  const messagesEndRef = useRef<HTMLDivElement>(null);
+  const inputRef = useRef<HTMLTextAreaElement>(null);
+
+  const { data: config } = useAIConfig();
+  const { data: models } = useAIModels();
+  const chatMutation = useAIChat();
+
+  // Set default model from config
+  useEffect(() => {
+    if (config?.default_model && !selectedModel) {
+      setSelectedModel(config.default_model);
+    }
+  }, [config, selectedModel]);
+
+  // Auto scroll to bottom
+  useEffect(() => {
+    messagesEndRef.current?.scrollIntoView({ behavior: 'smooth' });
+  }, [messages]);
+
+  // Auto resize textarea
+  const handleInputChange = (e: React.ChangeEvent<HTMLTextAreaElement>) => {
+    setInput(e.target.value);
+    e.target.style.height = 'auto';
+    e.target.style.height = `${Math.min(e.target.scrollHeight, 120)}px`;
+  };
+
+  const handleSubmit = async (e: FormEvent) => {
+    e.preventDefault();
+    const trimmedInput = input.trim();
+    if (!trimmedInput || chatMutation.isPending) return;
+
+    const userMessage: Message = {
+      id: `user-${Date.now()}`,
+      role: 'user',
+      content: trimmedInput,
+      timestamp: new Date(),
+    };
+
+    setMessages((prev) => [...prev, userMessage]);
+    setInput('');
+
+    // Reset textarea height
+    if (inputRef.current) {
+      inputRef.current.style.height = 'auto';
+    }
+
+    // Build message history for API
+    const apiMessages: ChatMessageType[] = [];
+
+    // Add system prompt if provided
+    if (systemPrompt) {
+      apiMessages.push({ role: 'system', content: systemPrompt });
+    } else if (config?.system_prompt) {
+      apiMessages.push({ role: 'system', content: config.system_prompt });
+    }
+
+    // Add conversation history
+    messages.forEach((msg) => {
+      if (msg.role !== 'system') {
+        apiMessages.push({ role: msg.role, content: msg.content });
+      }
+    });
+
+    // Add current user message
+    apiMessages.push({ role: 'user', content: trimmedInput });
+
+    // Add loading message
+    const loadingId = `assistant-${Date.now()}`;
+    setMessages((prev) => [
+      ...prev,
+      { id: loadingId, role: 'assistant', content: '', isLoading: true },
+    ]);
+
+    try {
+      const response = await chatMutation.mutateAsync({
+        messages: apiMessages,
+        model: selectedModel,
+        temperature: config?.temperature,
+        max_tokens: config?.max_tokens,
+      });
+
+      // Replace loading message with actual response
+      setMessages((prev) =>
+        prev.map((msg) =>
+          msg.id === loadingId
+            ? {
+                ...msg,
+                content: response.choices[0]?.message?.content || 'No response',
+                isLoading: false,
+                timestamp: new Date(),
+              }
+            : msg
+        )
+      );
+
+      onUsageUpdate?.();
+    } catch {
+      // Remove loading message on error
+      setMessages((prev) => prev.filter((msg) => msg.id !== loadingId));
+    }
+  };
+
+  const handleKeyDown = (e: React.KeyboardEvent<HTMLTextAreaElement>) => {
+    if (e.key === 'Enter' && !e.shiftKey) {
+      e.preventDefault();
+      handleSubmit(e);
+    }
+  };
+
+  const clearChat = () => {
+    setMessages([]);
+  };
+
+  return (
+    <div className={clsx('flex flex-col bg-white dark:bg-secondary-800 rounded-lg border border-secondary-200 dark:border-secondary-700', className)}>
+      {/* Header */}
+      <div className="flex items-center justify-between px-4 py-3 border-b border-secondary-200 dark:border-secondary-700">
+        <div className="flex items-center gap-2">
+          <Settings2 className="w-4 h-4 text-secondary-500" />
+          <span className="text-sm font-medium text-secondary-900 dark:text-white">
+            AI Assistant
+          </span>
+        </div>
+
+        <div className="flex items-center gap-2">
+          {showModelSelector && models && models.length > 0 && (
+            <select
+              value={selectedModel || ''}
+              onChange={(e) => setSelectedModel(e.target.value)}
+              className="text-xs bg-secondary-100 dark:bg-secondary-700 border-0 rounded px-2 py-1 text-secondary-700 dark:text-secondary-300"
+            >
+              {models.map((model) => (
+                <option key={model.id} value={model.id}>
+                  {model.name}
+                </option>
+              ))}
+            </select>
+          )}
+
+          <button
+            onClick={clearChat}
+            disabled={messages.length === 0}
+            className="p-1.5 text-secondary-400 hover:text-secondary-600 dark:hover:text-secondary-300 disabled:opacity-50 disabled:cursor-not-allowed"
+            title="Clear chat"
+          >
+            <Trash2 className="w-4 h-4" />
+          </button>
+        </div>
+      </div>
+
+      {/* Messages Area */}
+      <div className="flex-1 overflow-y-auto min-h-[300px] max-h-[500px]">
+        {messages.length === 0 ? (
+          <div className="flex flex-col items-center justify-center h-full text-secondary-400 py-12">
+            <Settings2 className="w-12 h-12 mb-3 opacity-50" />
+            <p className="text-sm">Start a conversation</p>
+            <p className="text-xs mt-1">Type a message below to begin</p>
+          </div>
+        ) : (
+          <div className="py-2">
+            {messages.map((message) => (
+              <ChatMessage key={message.id} {...message} />
+            ))}
+            <div ref={messagesEndRef} />
+          </div>
+        )}
+      </div>
+
+      {/* Input Area */}
+      <form onSubmit={handleSubmit} className="border-t border-secondary-200 dark:border-secondary-700 p-3">
+        <div className="flex items-end gap-2">
+          <textarea
+            ref={inputRef}
+            value={input}
+            onChange={handleInputChange}
+            onKeyDown={handleKeyDown}
+            placeholder={placeholder}
+            disabled={chatMutation.isPending || !config?.is_enabled}
+            rows={1}
+            className="flex-1 resize-none bg-secondary-50 dark:bg-secondary-700 border-0 rounded-lg px-4 py-2.5 text-sm text-secondary-900 dark:text-white placeholder-secondary-400 focus:ring-2 focus:ring-primary-500 disabled:opacity-50"
+          />
+          <button
+            type="submit"
+            disabled={!input.trim() || chatMutation.isPending || !config?.is_enabled}
+            className="flex-shrink-0 p-2.5 bg-primary-500 hover:bg-primary-600 disabled:bg-secondary-300 dark:disabled:bg-secondary-600 text-white rounded-lg transition-colors disabled:cursor-not-allowed"
+          >
+            {chatMutation.isPending ? (
+              <Loader2 className="w-5 h-5 animate-spin" />
+            ) : (
+              <Send className="w-5 h-5" />
+            )}
+          </button>
+        </div>
+
+        {!config?.is_enabled && (
+          <p className="text-xs text-amber-600 dark:text-amber-400 mt-2">
+            AI is currently disabled. Enable it in settings to start chatting.
+          </p>
+        )}
+      </form>
+    </div>
+  );
+}
diff --git a/apps/frontend/src/components/ai/AISettings.tsx b/apps/frontend/src/components/ai/AISettings.tsx
new file mode 100644
index 00000000..c0e987a0
--- /dev/null
+++ b/apps/frontend/src/components/ai/AISettings.tsx
@@ -0,0 +1,300 @@
+import { useForm } from 'react-hook-form';
+import { Bot, Zap, AlertCircle, Loader2, CheckCircle, XCircle } from 'lucide-react';
+import clsx from 'clsx';
+import { useAIConfig, useUpdateAIConfig, useAIModels, useCurrentAIUsage, useAIHealth } from '@/hooks/useAI';
+
+interface AIConfigForm {
+  is_enabled: boolean;
+  default_model: string;
+  temperature: number;
+  max_tokens: number;
+  system_prompt: string;
+  allow_custom_prompts: boolean;
+  log_conversations: boolean;
+}
+
+export function AISettings() {
+  const { data: config, isLoading: configLoading } = useAIConfig();
+  const { data: models } = useAIModels();
+  const { data: usage } = useCurrentAIUsage();
+  const { data: health } = useAIHealth();
+  const updateConfig = useUpdateAIConfig();
+
+  const {
+    register,
+    handleSubmit,
+    watch,
+    formState: { isDirty },
+  } = useForm<AIConfigForm>({
+    values: config ? {
+      is_enabled: config.is_enabled,
+      default_model: config.default_model,
+      temperature: config.temperature,
+      max_tokens: config.max_tokens,
+      system_prompt: config.system_prompt || '',
+      allow_custom_prompts: config.allow_custom_prompts,
+      log_conversations: config.log_conversations,
+    } : undefined,
+  });
+
+  const isEnabled = watch('is_enabled');
+  const temperature = watch('temperature');
+
+  const onSubmit = async (data: AIConfigForm) => {
+    await updateConfig.mutateAsync(data);
+  };
+
+  if (configLoading) {
+    return (
+      <div className="flex items-center justify-center py-12">
+        <Loader2 className="w-6 h-6 animate-spin text-primary-500" />
+      </div>
+    );
+  }
+
+  const formatCurrency = (amount: number) => {
+    return new Intl.NumberFormat('en-US', {
+      style: 'currency',
+      currency: 'USD',
+      minimumFractionDigits: 4,
+    }).format(amount);
+  };
+
+  return (
+    <div className="space-y-6">
+      {/* Status Card */}
+      <div className="card">
+        <div className="card-header flex items-center gap-3">
+          <Bot className="w-5 h-5 text-secondary-500" />
+          <div>
+            <h2 className="text-lg font-semibold text-secondary-900 dark:text-white">
+              AI Integration
+            </h2>
+            <p className="text-sm text-secondary-500">
+              Configure AI assistant settings for your organization
+            </p>
+          </div>
+        </div>
+        <div className="card-body">
+          {/* Health Status */}
+          <div className="flex items-center justify-between p-4 bg-secondary-50 dark:bg-secondary-700/50 rounded-lg mb-4">
+            <div className="flex items-center gap-3">
+              <div className={clsx(
+                'w-10 h-10 rounded-lg flex items-center justify-center',
+                health?.status === 'healthy' ? 'bg-green-100 dark:bg-green-900/30' :
+                health?.status === 'degraded' ? 'bg-yellow-100 dark:bg-yellow-900/30' :
+                'bg-red-100 dark:bg-red-900/30'
+              )}>
+                {health?.status === 'healthy' ? (
+                  <CheckCircle className="w-5 h-5 text-green-600 dark:text-green-400" />
+                ) : health?.status === 'degraded' ? (
+                  <AlertCircle className="w-5 h-5 text-yellow-600 dark:text-yellow-400" />
+                ) : (
+                  <XCircle className="w-5 h-5 text-red-600 dark:text-red-400" />
+                )}
+              </div>
+              <div>
+                <p className="font-medium text-secondary-900 dark:text-white">
+                  {health?.status === 'healthy' ? 'AI Service Operational' :
+                   health?.status === 'degraded' ? 'AI Service Degraded' :
+                   'AI Service Unavailable'}
+                </p>
+                <p className="text-sm text-secondary-500">
+                  {health?.provider || 'OpenRouter'} - {health?.models_available || 0} models available
+                </p>
+              </div>
+            </div>
+            {health?.latency_ms && (
+              <span className="text-sm text-secondary-500">
+                {health.latency_ms}ms latency
+              </span>
+            )}
+          </div>
+
+          {/* Usage Stats */}
+          {usage && (
+            <div className="grid grid-cols-2 md:grid-cols-4 gap-4 mb-6">
+              <div className="p-3 bg-secondary-50 dark:bg-secondary-700/50 rounded-lg">
+                <p className="text-xs text-secondary-500 uppercase tracking-wide">Requests</p>
+                <p className="text-xl font-semibold text-secondary-900 dark:text-white">
+                  {usage.request_count.toLocaleString()}
+                </p>
+              </div>
+              <div className="p-3 bg-secondary-50 dark:bg-secondary-700/50 rounded-lg">
+                <p className="text-xs text-secondary-500 uppercase tracking-wide">Tokens Used</p>
+                <p className="text-xl font-semibold text-secondary-900 dark:text-white">
+                  {usage.total_tokens.toLocaleString()}
+                </p>
+              </div>
+              <div className="p-3 bg-secondary-50 dark:bg-secondary-700/50 rounded-lg">
+                <p className="text-xs text-secondary-500 uppercase tracking-wide">Cost (Month)</p>
+                <p className="text-xl font-semibold text-secondary-900 dark:text-white">
+                  {formatCurrency(usage.total_cost)}
+                </p>
+              </div>
+              <div className="p-3 bg-secondary-50 dark:bg-secondary-700/50 rounded-lg">
+                <p className="text-xs text-secondary-500 uppercase tracking-wide">Avg Latency</p>
+                <p className="text-xl font-semibold text-secondary-900 dark:text-white">
+                  {Math.round(usage.avg_latency_ms)}ms
+                </p>
+              </div>
+            </div>
+          )}
+        </div>
+      </div>
+
+      {/* Configuration Form */}
+      <form onSubmit={handleSubmit(onSubmit)} className="card">
+        <div className="card-header flex items-center gap-3">
+          <Zap className="w-5 h-5 text-secondary-500" />
+          <div>
+            <h2 className="text-lg font-semibold text-secondary-900 dark:text-white">
+              Configuration
+            </h2>
+            <p className="text-sm text-secondary-500">
+              Customize AI behavior for your organization
+            </p>
+          </div>
+        </div>
+        <div className="card-body space-y-6">
+          {/* Enable AI */}
+          <div className="flex items-center justify-between">
+            <div>
+              <p className="font-medium text-secondary-900 dark:text-white">Enable AI</p>
+              <p className="text-sm text-secondary-500">Allow AI features in your organization</p>
+            </div>
+            <label className="relative inline-flex items-center cursor-pointer">
+              <input
+                type="checkbox"
+                className="sr-only peer"
+                {...register('is_enabled')}
+              />
+              <div className="w-11 h-6 bg-secondary-200 peer-focus:outline-none peer-focus:ring-4 peer-focus:ring-primary-300 dark:peer-focus:ring-primary-800 rounded-full peer dark:bg-secondary-700 peer-checked:after:translate-x-full peer-checked:after:border-white after:content-[''] after:absolute after:top-[2px] after:left-[2px] after:bg-white after:border-secondary-300 after:border after:rounded-full after:h-5 after:w-5 after:transition-all dark:border-secondary-600 peer-checked:bg-primary-500"></div>
+            </label>
+          </div>
+
+          {/* Model Selection */}
+          <div>
+            <label className="label">Default Model</label>
+            <select
+              className="input"
+              disabled={!isEnabled}
+              {...register('default_model')}
+            >
+              {models?.map((model) => (
+                <option key={model.id} value={model.id}>
+                  {model.name} ({model.provider})
+                </option>
+              ))}
+            </select>
+            <p className="text-xs text-secondary-500 mt-1">
+              This model will be used by default for all AI requests
+            </p>
+          </div>
+
+          {/* Temperature */}
+          <div>
+            <label className="label">Temperature: {temperature}</label>
+            <input
+              type="range"
+              min="0"
+              max="2"
+              step="0.1"
+              disabled={!isEnabled}
+              className="w-full h-2 bg-secondary-200 rounded-lg appearance-none cursor-pointer dark:bg-secondary-700 disabled:opacity-50"
+              {...register('temperature', { valueAsNumber: true })}
+            />
+            <div className="flex justify-between text-xs text-secondary-500 mt-1">
+              <span>Precise (0)</span>
+              <span>Balanced (1)</span>
+              <span>Creative (2)</span>
+            </div>
+          </div>
+
+          {/* Max Tokens */}
+          <div>
+            <label className="label">Max Tokens</label>
+            <input
+              type="number"
+              className="input"
+              min="100"
+              max="128000"
+              disabled={!isEnabled}
+              {...register('max_tokens', { valueAsNumber: true })}
+            />
+            <p className="text-xs text-secondary-500 mt-1">
+              Maximum number of tokens per response (100-128,000)
+            </p>
+          </div>
+
+          {/* System Prompt */}
+          <div>
+            <label className="label">System Prompt</label>
+            <textarea
+              className="input min-h-[100px]"
+              placeholder="You are a helpful assistant..."
+              disabled={!isEnabled}
+              {...register('system_prompt')}
+            />
+            <p className="text-xs text-secondary-500 mt-1">
+              Custom instructions for the AI assistant
+            </p>
+          </div>
+
+          {/* Additional Settings */}
+          <div className="space-y-4 pt-4 border-t border-secondary-200 dark:border-secondary-700">
+            <div className="flex items-center justify-between">
+              <div>
+                <p className="font-medium text-secondary-900 dark:text-white">Allow Custom Prompts</p>
+                <p className="text-sm text-secondary-500">Let users override the system prompt</p>
+              </div>
+              <label className="relative inline-flex items-center cursor-pointer">
+                <input
+                  type="checkbox"
+                  className="sr-only peer"
+                  disabled={!isEnabled}
+                  {...register('allow_custom_prompts')}
+                />
+                <div className="w-11 h-6 bg-secondary-200 peer-focus:outline-none peer-focus:ring-4 peer-focus:ring-primary-300 dark:peer-focus:ring-primary-800 rounded-full peer dark:bg-secondary-700 peer-checked:after:translate-x-full peer-checked:after:border-white after:content-[''] after:absolute after:top-[2px] after:left-[2px] after:bg-white after:border-secondary-300 after:border after:rounded-full after:h-5 after:w-5 after:transition-all dark:border-secondary-600 peer-checked:bg-primary-500 peer-disabled:opacity-50"></div>
+              </label>
+            </div>
+
+            <div className="flex items-center justify-between">
+              <div>
+                <p className="font-medium text-secondary-900 dark:text-white">Log Conversations</p>
+                <p className="text-sm text-secondary-500">Store conversation history for analytics</p>
+              </div>
+              <label className="relative inline-flex items-center cursor-pointer">
+                <input
+                  type="checkbox"
+                  className="sr-only peer"
+                  disabled={!isEnabled}
+                  {...register('log_conversations')}
+                />
+                <div className="w-11 h-6 bg-secondary-200 peer-focus:outline-none peer-focus:ring-4 peer-focus:ring-primary-300 dark:peer-focus:ring-primary-800 rounded-full peer dark:bg-secondary-700 peer-checked:after:translate-x-full peer-checked:after:border-white after:content-[''] after:absolute after:top-[2px] after:left-[2px] after:bg-white after:border-secondary-300 after:border after:rounded-full after:h-5 after:w-5 after:transition-all dark:border-secondary-600 peer-checked:bg-primary-500 peer-disabled:opacity-50"></div>
+              </label>
+            </div>
+          </div>
+
+          {/* Submit Button */}
+          <div className="pt-4">
+            <button
+              type="submit"
+              disabled={!isDirty || updateConfig.isPending}
+              className="btn-primary"
+            >
+              {updateConfig.isPending ? (
+                <>
+                  <Loader2 className="w-4 h-4 mr-2 animate-spin" />
+                  Saving...
+                </>
+              ) : (
+                'Save Changes'
+              )}
+            </button>
+          </div>
+        </div>
+      </form>
+    </div>
+  );
+}
diff --git a/apps/frontend/src/components/ai/ChatMessage.tsx b/apps/frontend/src/components/ai/ChatMessage.tsx
new file mode 100644
index 00000000..3102bb40
--- /dev/null
+++ b/apps/frontend/src/components/ai/ChatMessage.tsx
@@ -0,0 +1,83 @@
+import { Bot, User } from 'lucide-react';
+import clsx from 'clsx';
+
+export interface ChatMessageProps {
+  role: 'user' | 'assistant' | 'system';
+  content: string;
+  timestamp?: Date;
+  isLoading?: boolean;
+}
+
+export function ChatMessage({ role, content, timestamp, isLoading }: ChatMessageProps) {
+  const isUser = role === 'user';
+  const isSystem = role === 'system';
+
+  if (isSystem) {
+    return (
+      <div className="flex justify-center my-2">
+        <span className="text-xs text-secondary-500 bg-secondary-100 dark:bg-secondary-800 px-3 py-1 rounded-full">
+          {content}
+        </span>
+      </div>
+    );
+  }
+
+  return (
+    <div
+      className={clsx(
+        'flex gap-3 p-4',
+        isUser ? 'flex-row-reverse' : 'flex-row'
+      )}
+    >
+      {/* Avatar */}
+      <div
+        className={clsx(
+          'flex-shrink-0 w-8 h-8 rounded-full flex items-center justify-center',
+          isUser
+            ? 'bg-primary-100 dark:bg-primary-900/30'
+            : 'bg-secondary-100 dark:bg-secondary-800'
+        )}
+      >
+        {isUser ? (
+          <User className="w-4 h-4 text-primary-600 dark:text-primary-400" />
+        ) : (
+          <Bot className="w-4 h-4 text-secondary-600 dark:text-secondary-400" />
+        )}
+      </div>
+
+      {/* Message Content */}
+      <div
+        className={clsx(
+          'flex flex-col max-w-[80%]',
+          isUser ? 'items-end' : 'items-start'
+        )}
+      >
+        <div
+          className={clsx(
+            'rounded-2xl px-4 py-2',
+            isUser
+              ? 'bg-primary-500 text-white rounded-tr-sm'
+              : 'bg-secondary-100 dark:bg-secondary-800 text-secondary-900 dark:text-white rounded-tl-sm'
+          )}
+        >
+          {isLoading ? (
+            <div className="flex items-center gap-1">
+              <span className="w-2 h-2 bg-current rounded-full animate-bounce" style={{ animationDelay: '0ms' }} />
+              <span className="w-2 h-2 bg-current rounded-full animate-bounce" style={{ animationDelay: '150ms' }} />
+              <span className="w-2 h-2 bg-current rounded-full animate-bounce" style={{ animationDelay: '300ms' }} />
+            </div>
+          ) : (
+            <p className="text-sm whitespace-pre-wrap">{content}</p>
+          )}
+        </div>
+
+        {/* Timestamp */}
+        {timestamp && (
+          <span className="text-xs text-secondary-400 mt-1">
+            {timestamp.toLocaleTimeString([], { hour: '2-digit', minute: '2-digit' })}
+          </span>
+        )}
+      </div>
+    </div>
+  );
+}
diff --git a/apps/frontend/src/components/ai/index.ts b/apps/frontend/src/components/ai/index.ts
new file mode 100644
index 00000000..9888a97c
--- /dev/null
+++ b/apps/frontend/src/components/ai/index.ts
@@ -0,0 +1,4 @@
+export { AIChat } from './AIChat';
+export { AISettings } from './AISettings';
+export { ChatMessage } from './ChatMessage';
+export type { ChatMessageProps } from './ChatMessage';
diff --git a/apps/frontend/src/components/index.ts b/apps/frontend/src/components/index.ts
index f90b75e5..543b148e 100644
--- a/apps/frontend/src/components/index.ts
+++ b/apps/frontend/src/components/index.ts
@@ -1,2 +1,5 @@
 // Notifications
 export * from './notifications';
+
+// AI
+export * from './ai';
diff --git a/apps/frontend/src/hooks/index.ts b/apps/frontend/src/hooks/index.ts
index de593340..0aff192b 100644
--- a/apps/frontend/src/hooks/index.ts
+++ b/apps/frontend/src/hooks/index.ts
@@ -2,3 +2,4 @@ export * from './useAuth';
 export * from './useData';
 export * from './useSuperadmin';
 export * from './useOnboarding';
+export * from './useAI';
diff --git a/apps/frontend/src/hooks/useAI.ts b/apps/frontend/src/hooks/useAI.ts
new file mode 100644
index 00000000..8264cd44
--- /dev/null
+++ b/apps/frontend/src/hooks/useAI.ts
@@ -0,0 +1,134 @@
+import { useQuery, useMutation, useQueryClient } from '@tanstack/react-query';
+import toast from 'react-hot-toast';
+import { aiApi, ChatRequest, ChatResponse, AIConfig, AIModel, AIUsageStats } from '@/services/api';
+import { AxiosError } from 'axios';
+
+interface ApiError {
+  message: string;
+  statusCode?: number;
+}
+
+// ==================== Query Keys ====================
+
+export const aiQueryKeys = {
+  all: ['ai'] as const,
+  config: () => [...aiQueryKeys.all, 'config'] as const,
+  models: () => [...aiQueryKeys.all, 'models'] as const,
+  usage: (page?: number, limit?: number) => [...aiQueryKeys.all, 'usage', { page, limit }] as const,
+  currentUsage: () => [...aiQueryKeys.all, 'current-usage'] as const,
+  health: () => [...aiQueryKeys.all, 'health'] as const,
+};
+
+// ==================== Config Hooks ====================
+
+export function useAIConfig() {
+  return useQuery({
+    queryKey: aiQueryKeys.config(),
+    queryFn: () => aiApi.getConfig(),
+    retry: 1,
+    staleTime: 5 * 60 * 1000, // 5 minutes
+  });
+}
+
+export function useUpdateAIConfig() {
+  const queryClient = useQueryClient();
+
+  return useMutation({
+    mutationFn: (data: Partial<AIConfig>) => aiApi.updateConfig(data),
+    onSuccess: () => {
+      queryClient.invalidateQueries({ queryKey: aiQueryKeys.config() });
+      toast.success('AI configuration updated');
+    },
+    onError: (error: AxiosError<ApiError>) => {
+      toast.error(error.response?.data?.message || 'Failed to update AI configuration');
+    },
+  });
+}
+
+// ==================== Models Hook ====================
+
+export function useAIModels() {
+  return useQuery({
+    queryKey: aiQueryKeys.models(),
+    queryFn: () => aiApi.getModels(),
+    staleTime: 30 * 60 * 1000, // 30 minutes - models don't change often
+  });
+}
+
+// ==================== Chat Hook ====================
+
+export function useAIChat() {
+  const queryClient = useQueryClient();
+
+  return useMutation({
+    mutationFn: (data: ChatRequest) => aiApi.chat(data),
+    onSuccess: () => {
+      // Invalidate usage queries after successful chat
+      queryClient.invalidateQueries({ queryKey: aiQueryKeys.currentUsage() });
+      queryClient.invalidateQueries({ queryKey: aiQueryKeys.usage() });
+    },
+    onError: (error: AxiosError<ApiError>) => {
+      const message = error.response?.data?.message || 'Failed to get AI response';
+      toast.error(message);
+    },
+  });
+}
+
+// ==================== Usage Hooks ====================
+
+export interface AIUsageRecord {
+  id: string;
+  model: string;
+  input_tokens: number;
+  output_tokens: number;
+  total_tokens: number;
+  cost: number;
+  latency_ms: number;
+  status: string;
+  created_at: string;
+}
+
+export interface AIUsageResponse {
+  data: AIUsageRecord[];
+  total: number;
+  page: number;
+  limit: number;
+  totalPages: number;
+}
+
+export function useAIUsage(page = 1, limit = 10) {
+  return useQuery({
+    queryKey: aiQueryKeys.usage(page, limit),
+    queryFn: () => aiApi.getUsage({ page, limit }) as Promise<AIUsageResponse>,
+  });
+}
+
+export function useCurrentAIUsage() {
+  return useQuery({
+    queryKey: aiQueryKeys.currentUsage(),
+    queryFn: () => aiApi.getCurrentUsage(),
+    refetchInterval: 60000, // Refetch every minute
+  });
+}
+
+// ==================== Health Hook ====================
+
+export interface AIHealthStatus {
+  status: 'healthy' | 'degraded' | 'unhealthy';
+  provider: string;
+  latency_ms: number;
+  models_available: number;
+}
+
+export function useAIHealth() {
+  return useQuery({
+    queryKey: aiQueryKeys.health(),
+    queryFn: () => aiApi.getHealth() as Promise<AIHealthStatus>,
+    refetchInterval: 5 * 60 * 1000, // Check every 5 minutes
+    retry: 1,
+  });
+}
+
+// ==================== Re-export types ====================
+
+export type { ChatRequest, ChatResponse, AIConfig, AIModel, AIUsageStats };
diff --git a/apps/frontend/src/layouts/DashboardLayout.tsx b/apps/frontend/src/layouts/DashboardLayout.tsx
index a63713d1..38eec4dc 100644
--- a/apps/frontend/src/layouts/DashboardLayout.tsx
+++ b/apps/frontend/src/layouts/DashboardLayout.tsx
@@ -13,6 +13,7 @@ import {
   Building2,
   Shield,
   BarChart3,
+  Bot,
 } from 'lucide-react';
 import { useState } from 'react';
 import clsx from 'clsx';
@@ -20,6 +21,7 @@ import { NotificationBell } from '@/components/notifications';
 
 const navigation = [
   { name: 'Dashboard', href: '/dashboard', icon: LayoutDashboard },
+  { name: 'AI Assistant', href: '/dashboard/ai', icon: Bot },
   { name: 'Users', href: '/dashboard/users', icon: Users },
   { name: 'Billing', href: '/dashboard/billing', icon: CreditCard },
   { name: 'Settings', href: '/dashboard/settings', icon: Settings },
diff --git a/apps/frontend/src/pages/dashboard/AIPage.tsx b/apps/frontend/src/pages/dashboard/AIPage.tsx
new file mode 100644
index 00000000..c24238ad
--- /dev/null
+++ b/apps/frontend/src/pages/dashboard/AIPage.tsx
@@ -0,0 +1,107 @@
+import { Bot, Sparkles, TrendingUp } from 'lucide-react';
+import { AIChat } from '@/components/ai';
+import { useCurrentAIUsage, useAIConfig } from '@/hooks/useAI';
+
+export function AIPage() {
+  const { data: usage } = useCurrentAIUsage();
+  const { data: config } = useAIConfig();
+
+  const formatNumber = (num: number) => {
+    if (num >= 1000000) return `${(num / 1000000).toFixed(1)}M`;
+    if (num >= 1000) return `${(num / 1000).toFixed(1)}K`;
+    return num.toString();
+  };
+
+  return (
+    <div className="space-y-6">
+      {/* Header */}
+      <div className="flex items-center justify-between">
+        <div>
+          <h1 className="text-2xl font-bold text-secondary-900 dark:text-white">
+            AI Assistant
+          </h1>
+          <p className="text-secondary-600 dark:text-secondary-400 mt-1">
+            Chat with your AI assistant powered by {config?.provider || 'OpenRouter'}
+          </p>
+        </div>
+      </div>
+
+      {/* Stats */}
+      <div className="grid grid-cols-1 md:grid-cols-3 gap-4">
+        <div className="card p-4">
+          <div className="flex items-center gap-3">
+            <div className="w-10 h-10 bg-primary-100 dark:bg-primary-900/30 rounded-lg flex items-center justify-center">
+              <Bot className="w-5 h-5 text-primary-600 dark:text-primary-400" />
+            </div>
+            <div>
+              <p className="text-sm text-secondary-500">Requests This Month</p>
+              <p className="text-xl font-semibold text-secondary-900 dark:text-white">
+                {usage?.request_count?.toLocaleString() || 0}
+              </p>
+            </div>
+          </div>
+        </div>
+
+        <div className="card p-4">
+          <div className="flex items-center gap-3">
+            <div className="w-10 h-10 bg-green-100 dark:bg-green-900/30 rounded-lg flex items-center justify-center">
+              <Sparkles className="w-5 h-5 text-green-600 dark:text-green-400" />
+            </div>
+            <div>
+              <p className="text-sm text-secondary-500">Tokens Used</p>
+              <p className="text-xl font-semibold text-secondary-900 dark:text-white">
+                {formatNumber(usage?.total_tokens || 0)}
+              </p>
+            </div>
+          </div>
+        </div>
+
+        <div className="card p-4">
+          <div className="flex items-center gap-3">
+            <div className="w-10 h-10 bg-amber-100 dark:bg-amber-900/30 rounded-lg flex items-center justify-center">
+              <TrendingUp className="w-5 h-5 text-amber-600 dark:text-amber-400" />
+            </div>
+            <div>
+              <p className="text-sm text-secondary-500">Avg Response Time</p>
+              <p className="text-xl font-semibold text-secondary-900 dark:text-white">
+                {Math.round(usage?.avg_latency_ms || 0)}ms
+              </p>
+            </div>
+          </div>
+        </div>
+      </div>
+
+      {/* Chat Interface */}
+      <AIChat
+        className="h-[600px]"
+        showModelSelector={config?.allow_custom_prompts}
+        placeholder="Ask me anything..."
+      />
+
+      {/* Tips */}
+      <div className="card p-4">
+        <h3 className="font-medium text-secondary-900 dark:text-white mb-3">
+          Tips for better results
+        </h3>
+        <ul className="space-y-2 text-sm text-secondary-600 dark:text-secondary-400">
+          <li className="flex items-start gap-2">
+            <span className="text-primary-500">•</span>
+            Be specific and provide context for your questions
+          </li>
+          <li className="flex items-start gap-2">
+            <span className="text-primary-500">•</span>
+            Break complex tasks into smaller, focused requests
+          </li>
+          <li className="flex items-start gap-2">
+            <span className="text-primary-500">•</span>
+            Use follow-up questions to refine responses
+          </li>
+          <li className="flex items-start gap-2">
+            <span className="text-primary-500">•</span>
+            Clear the chat to start fresh conversations
+          </li>
+        </ul>
+      </div>
+    </div>
+  );
+}
diff --git a/apps/frontend/src/pages/dashboard/index.ts b/apps/frontend/src/pages/dashboard/index.ts
index b4fe1cf0..3be9a1ae 100644
--- a/apps/frontend/src/pages/dashboard/index.ts
+++ b/apps/frontend/src/pages/dashboard/index.ts
@@ -2,3 +2,4 @@ export * from './DashboardPage';
 export * from './SettingsPage';
 export * from './BillingPage';
 export * from './UsersPage';
+export * from './AIPage';
diff --git a/apps/frontend/src/pages/settings/SettingsPage.tsx b/apps/frontend/src/pages/settings/SettingsPage.tsx
index 084ed129..b33f78ce 100644
--- a/apps/frontend/src/pages/settings/SettingsPage.tsx
+++ b/apps/frontend/src/pages/settings/SettingsPage.tsx
@@ -1,11 +1,12 @@
 import { useState } from 'react';
-import { Settings, User, Bell, Shield } from 'lucide-react';
+import { Settings, User, Bell, Shield, Bot } from 'lucide-react';
 import clsx from 'clsx';
 import { GeneralSettings } from './GeneralSettings';
 import { NotificationSettings } from './NotificationSettings';
 import { SecuritySettings } from './SecuritySettings';
+import { AISettings } from '@/components/ai';
 
-type TabKey = 'general' | 'notifications' | 'security';
+type TabKey = 'general' | 'notifications' | 'security' | 'ai';
 
 interface Tab {
   key: TabKey;
@@ -33,6 +34,12 @@ const tabs: Tab[] = [
     icon: Shield,
     component: SecuritySettings,
   },
+  {
+    key: 'ai',
+    label: 'AI',
+    icon: Bot,
+    component: AISettings,
+  },
 ];
 
 export function SettingsPage() {
diff --git a/apps/frontend/src/router/index.tsx b/apps/frontend/src/router/index.tsx
index 7e66a6f9..425ebcc6 100644
--- a/apps/frontend/src/router/index.tsx
+++ b/apps/frontend/src/router/index.tsx
@@ -14,6 +14,7 @@ import { ForgotPasswordPage } from '@/pages/auth/ForgotPasswordPage';
 import { DashboardPage } from '@/pages/dashboard/DashboardPage';
 import { BillingPage } from '@/pages/dashboard/BillingPage';
 import { UsersPage } from '@/pages/dashboard/UsersPage';
+import { AIPage } from '@/pages/dashboard/AIPage';
 
 // Settings pages
 import { SettingsPage } from '@/pages/settings';
@@ -96,6 +97,7 @@ export function AppRouter() {
         <Route path="settings" element={<SettingsPage />} />
         <Route path="billing" element={<BillingPage />} />
         <Route path="users" element={<UsersPage />} />
+        <Route path="ai" element={<AIPage />} />
       </Route>
 
       {/* Superadmin routes */}
diff --git a/apps/frontend/src/services/api.ts b/apps/frontend/src/services/api.ts
index 396b50ee..5f6fbbb1 100644
--- a/apps/frontend/src/services/api.ts
+++ b/apps/frontend/src/services/api.ts
@@ -423,6 +423,107 @@ export const superadminApi = {
   },
 };
 
+// AI API
+export interface ChatMessage {
+  role: 'system' | 'user' | 'assistant';
+  content: string;
+}
+
+export interface ChatRequest {
+  messages: ChatMessage[];
+  model?: string;
+  temperature?: number;
+  max_tokens?: number;
+}
+
+export interface ChatResponse {
+  id: string;
+  model: string;
+  choices: {
+    index: number;
+    message: ChatMessage;
+    finish_reason: string;
+  }[];
+  usage: {
+    prompt_tokens: number;
+    completion_tokens: number;
+    total_tokens: number;
+  };
+}
+
+export interface AIConfig {
+  id: string;
+  tenant_id: string;
+  provider: string;
+  default_model: string;
+  fallback_model?: string;
+  temperature: number;
+  max_tokens: number;
+  system_prompt?: string;
+  is_enabled: boolean;
+  allow_custom_prompts: boolean;
+  log_conversations: boolean;
+  created_at: string;
+  updated_at: string;
+}
+
+export interface AIModel {
+  id: string;
+  name: string;
+  provider: string;
+  context_length: number;
+  pricing: {
+    prompt: number;
+    completion: number;
+  };
+}
+
+export interface AIUsageStats {
+  request_count: number;
+  total_input_tokens: number;
+  total_output_tokens: number;
+  total_tokens: number;
+  total_cost: number;
+  avg_latency_ms: number;
+}
+
+export const aiApi = {
+  chat: async (data: ChatRequest): Promise<ChatResponse> => {
+    const response = await api.post<ChatResponse>('/ai/chat', data);
+    return response.data;
+  },
+
+  getModels: async (): Promise<AIModel[]> => {
+    const response = await api.get<AIModel[]>('/ai/models');
+    return response.data;
+  },
+
+  getConfig: async (): Promise<AIConfig> => {
+    const response = await api.get<AIConfig>('/ai/config');
+    return response.data;
+  },
+
+  updateConfig: async (data: Partial<AIConfig>): Promise<AIConfig> => {
+    const response = await api.patch<AIConfig>('/ai/config', data);
+    return response.data;
+  },
+
+  getUsage: async (params?: { page?: number; limit?: number }) => {
+    const response = await api.get('/ai/usage', { params });
+    return response.data;
+  },
+
+  getCurrentUsage: async (): Promise<AIUsageStats> => {
+    const response = await api.get<AIUsageStats>('/ai/usage/current');
+    return response.data;
+  },
+
+  getHealth: async () => {
+    const response = await api.get('/ai/health');
+    return response.data;
+  },
+};
+
 // Export utilities
 export { getTenantId };
 export default api;