diff --git a/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts b/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
index 7b64c28..bea3a3f 100644
--- a/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
+++ b/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
@@ -192,3 +192,4 @@ abstract class OpenChatGlobalAction extends Action2 {
 				ChatContextKeys.Setup.hidden.negate(),
-				ChatContextKeys.Setup.disabled.negate()
+				ChatContextKeys.Setup.disabled.negate(),
+				ContextKeyExpr.has('config.chat.disableAIFeatures').negate()
 			)
@@ -806,3 +807,3 @@ export function registerChatActions() {
 				precondition: ContextKeyExpr.and(
-					ChatContextKeys.Setup.installed,
+					ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 					ChatContextKeys.Setup.disabled.negate(),
@@ -1232,3 +1233,4 @@ MenuRegistry.appendMenuItem(MenuId.EditorContext, {
 		ChatContextKeys.Setup.hidden.negate(),
-		ChatContextKeys.Setup.disabled.negate()
+		ChatContextKeys.Setup.disabled.negate(),
+		ContextKeyExpr.has('config.chat.disableAIFeatures').negate()
 	)
diff --git a/src/vs/workbench/contrib/chat/browser/chat.contribution.ts b/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
index d211a1d..cfbcdf5 100644
--- a/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
+++ b/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
@@ -969,3 +969,3 @@ configurationRegistry.registerConfiguration({
 			description: nls.localize('chat.disableAIFeatures', "Disable and hide built-in AI features provided by GitHub Copilot, including chat and inline suggestions."),
-			default: false,
+			default: true,
 			scope: ConfigurationScope.WINDOW
diff --git a/src/vs/workbench/contrib/chat/browser/chatParticipant.contribution.ts b/src/vs/workbench/contrib/chat/browser/chatParticipant.contribution.ts
index ddb5df4..7831288 100644
--- a/src/vs/workbench/contrib/chat/browser/chatParticipant.contribution.ts
+++ b/src/vs/workbench/contrib/chat/browser/chatParticipant.contribution.ts
@@ -70,10 +70,9 @@ const chatViewDescriptor: IViewDescriptor = {
 	ctorDescriptor: new SyncDescriptor(ChatViewPane),
-	when: ContextKeyExpr.or(
-		ContextKeyExpr.or(
-			ChatContextKeys.Setup.hidden,
-			ChatContextKeys.Setup.disabled
-		)?.negate(),
-		ChatContextKeys.panelParticipantRegistered,
-		ChatContextKeys.extensionInvalid
-	)
+	when: ContextKeyExpr.and(
+		ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
+		ChatContextKeys.Setup.disabled.negate(),
+		ChatContextKeys.Setup.hidden.negate(),
+ 		ChatContextKeys.panelParticipantRegistered,
+		ChatContextKeys.extensionInvalid.negate()
+ 	)
 };
diff --git a/src/vs/workbench/contrib/chat/common/actions/chatContextKeys.ts b/src/vs/workbench/contrib/chat/common/actions/chatContextKeys.ts
index 9085864..4331066 100644
--- a/src/vs/workbench/contrib/chat/common/actions/chatContextKeys.ts
+++ b/src/vs/workbench/contrib/chat/common/actions/chatContextKeys.ts
@@ -126,3 +126,3 @@ export namespace ChatContextKeyExprs {
 	export const chatSetupTriggerContext = ContextKeyExpr.or(
-		ChatContextKeys.Setup.installed.negate(),
+		ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 		ChatContextKeys.Entitlement.canSignUp
diff --git a/src/vs/workbench/contrib/mcp/browser/mcpServersView.ts b/src/vs/workbench/contrib/mcp/browser/mcpServersView.ts
index 7f4dfea..5957267 100644
--- a/src/vs/workbench/contrib/mcp/browser/mcpServersView.ts
+++ b/src/vs/workbench/contrib/mcp/browser/mcpServersView.ts
@@ -540,3 +540,3 @@ export class McpServersViewsContribution extends Disposable implements IWorkbenc
 				ctorDescriptor: new SyncDescriptor(DefaultBrowseMcpServersView, [{}]),
-				when: ContextKeyExpr.and(DefaultViewsContext, HasInstalledMcpServersContext.toNegated(), ChatContextKeys.Setup.hidden.negate(), McpServersGalleryStatusContext.isEqualTo(McpGalleryManifestStatus.Available), ContextKeyExpr.or(ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceUrlConfig}`), ProductQualityContext.notEqualsTo('stable'), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceEnablementConfig}`))),
+				when: ContextKeyExpr.and(DefaultViewsContext, HasInstalledMcpServersContext.toNegated(), ContextKeyExpr.has('config.chat.disableAIFeatures').negate(), ChatContextKeys.Setup.hidden.negate(), McpServersGalleryStatusContext.isEqualTo(McpGalleryManifestStatus.Available), ContextKeyExpr.or(ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceUrlConfig}`), ProductQualityContext.notEqualsTo('stable'), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceEnablementConfig}`))),
 				weight: 40,
@@ -555,3 +555,3 @@ export class McpServersViewsContribution extends Disposable implements IWorkbenc
 				ctorDescriptor: new SyncDescriptor(DefaultBrowseMcpServersView, [{ showWelcome: true }]),
-				when: ContextKeyExpr.and(DefaultViewsContext, HasInstalledMcpServersContext.toNegated(), ChatContextKeys.Setup.hidden.negate(), McpServersGalleryStatusContext.isEqualTo(McpGalleryManifestStatus.Available), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceUrlConfig}`).negate(), ProductQualityContext.isEqualTo('stable'), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceEnablementConfig}`).negate()),
+				when: ContextKeyExpr.and(DefaultViewsContext, HasInstalledMcpServersContext.toNegated(), ContextKeyExpr.has('config.chat.disableAIFeatures').negate(), ChatContextKeys.Setup.hidden.negate(), McpServersGalleryStatusContext.isEqualTo(McpGalleryManifestStatus.Available), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceUrlConfig}`).negate(), ProductQualityContext.isEqualTo('stable'), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceEnablementConfig}`).negate()),
 				weight: 40,
diff --git a/src/vs/workbench/contrib/scm/browser/scm.contribution.ts b/src/vs/workbench/contrib/scm/browser/scm.contribution.ts
index c38dc40..a3e398c 100644
--- a/src/vs/workbench/contrib/scm/browser/scm.contribution.ts
+++ b/src/vs/workbench/contrib/scm/browser/scm.contribution.ts
@@ -704,3 +704,3 @@ registerAction2(class extends Action2 {
 					ChatContextKeys.Setup.disabled.negate(),
-					ChatContextKeys.Setup.installed.negate(),
+					ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 					ContextKeyExpr.in(ResourceContextKey.Resource.key, 'git.mergeChanges'),
diff --git a/src/vs/workbench/contrib/scm/browser/scmViewPane.ts b/src/vs/workbench/contrib/scm/browser/scmViewPane.ts
index 012d3c5..2f53955 100644
--- a/src/vs/workbench/contrib/scm/browser/scmViewPane.ts
+++ b/src/vs/workbench/contrib/scm/browser/scmViewPane.ts
@@ -1417,3 +1417,3 @@ registerAction2(class extends Action2 {
 					ChatContextKeys.Setup.disabled.negate(),
-					ChatContextKeys.Setup.installed.negate(),
+					ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 					ContextKeyExpr.equals('scmProvider', 'git')