diff --git a/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts b/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
index f7d4917d..b62a8a43 100644
--- a/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
+++ b/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
@@ -1144,3 +1144,3 @@ export function registerChatActions() {
 				precondition: ContextKeyExpr.and(
-					ChatContextKeys.Setup.installed,
+					ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 					ChatContextKeys.Setup.disabled.negate(),
diff --git a/src/vs/workbench/contrib/chat/browser/actions/chatContextActions.ts b/src/vs/workbench/contrib/chat/browser/actions/chatContextActions.ts
index 04243ca9..5241910f 100644
--- a/src/vs/workbench/contrib/chat/browser/actions/chatContextActions.ts
+++ b/src/vs/workbench/contrib/chat/browser/actions/chatContextActions.ts
@@ -316,3 +316,4 @@ class AttachSelectionToChatAction extends Action2 {
 						ResourceContextKey.Scheme.isEqualTo(Schemas.vscodeUserData)
-					)
+					),
+					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 7e9c73f6..03da6f20 100644
--- a/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
+++ b/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
@@ -1420,3 +1420,3 @@ 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 8ac8f531..f56d3e96 100644
--- a/src/vs/workbench/contrib/chat/browser/chatParticipant.contribution.ts
+++ b/src/vs/workbench/contrib/chat/browser/chatParticipant.contribution.ts
@@ -72,2 +72,3 @@ const chatViewDescriptor: IViewDescriptor = {
 		ContextKeyExpr.and(
+			ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 			ChatContextKeys.Setup.hidden.negate(),
diff --git a/src/vs/workbench/contrib/chat/browser/chatSetup/chatSetupContributions.ts b/src/vs/workbench/contrib/chat/browser/chatSetup/chatSetupContributions.ts
index 3fa75da3..b1832fcb 100644
--- a/src/vs/workbench/contrib/chat/browser/chatSetup/chatSetupContributions.ts
+++ b/src/vs/workbench/contrib/chat/browser/chatSetup/chatSetupContributions.ts
@@ -232,8 +232,9 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 					f1: true,
-					precondition: ContextKeyExpr.or(
-						ChatContextKeys.Setup.hidden,
-						ChatContextKeys.Setup.disabledInWorkspace,
-						ChatContextKeys.Setup.untrusted,
-						ChatContextKeys.Setup.completed.negate(),
-						ChatContextKeys.Entitlement.canSignUp
+					precondition: ContextKeyExpr.and(
+						ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
+						ChatContextKeys.Setup.hidden.negate(),
+						ChatContextKeys.Setup.disabledInWorkspace.negate(),
+						ChatContextKeys.Setup.untrusted.negate(),
+						ChatContextKeys.Setup.completed,
+						ChatContextKeys.Entitlement.canSignUp.negate()
 					)
@@ -353,2 +354,3 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 						when: ContextKeyExpr.and(
+							ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 							ChatContextKeys.Setup.hidden.negate(),
@@ -385,2 +387,3 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 						when: ContextKeyExpr.and(
+							ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 							IsWebContext.negate(),
@@ -415,2 +418,3 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 					precondition: ContextKeyExpr.and(
+						ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 						ChatContextKeys.Setup.hidden.negate(),
@@ -472,2 +476,3 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 					precondition: ContextKeyExpr.and(
+						ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 						ChatContextKeys.Setup.hidden.negate(),
@@ -564,2 +569,3 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 		const internalGenerateCodeContext = ContextKeyExpr.and(
+			ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 			ChatContextKeys.Setup.hidden.negate(),
@@ -801,3 +807,7 @@ export class ChatTeardownContribution extends Disposable implements IWorkbenchCo
 					category: CHAT_CATEGORY,
-					precondition: ContextKeyExpr.and(ChatContextKeys.Setup.hidden.negate(), ChatContextKeys.Setup.disabledInWorkspace.negate()),
+					precondition: ContextKeyExpr.and(
+						ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
+						ChatContextKeys.Setup.hidden.negate(),
+						ChatContextKeys.Setup.disabledInWorkspace.negate()
+					),
 					menu: {
diff --git a/src/vs/workbench/contrib/inlineChat/browser/inlineChatActions.ts b/src/vs/workbench/contrib/inlineChat/browser/inlineChatActions.ts
index 2c244736..2f5023d8 100644
--- a/src/vs/workbench/contrib/inlineChat/browser/inlineChatActions.ts
+++ b/src/vs/workbench/contrib/inlineChat/browser/inlineChatActions.ts
@@ -43,3 +43,4 @@ const inlineChatContextKey = ContextKeyExpr.and(
 	EditorContextKeys.writable,
-	EditorContextKeys.editorSimpleInput.negate()
+	EditorContextKeys.editorSimpleInput.negate(),
+	ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 );
diff --git a/src/vs/workbench/contrib/mcp/browser/mcpServersView.ts b/src/vs/workbench/contrib/mcp/browser/mcpServersView.ts
index dc231e44..633de730 100644
--- a/src/vs/workbench/contrib/mcp/browser/mcpServersView.ts
+++ b/src/vs/workbench/contrib/mcp/browser/mcpServersView.ts
@@ -545,3 +545,3 @@ export class McpServersViewsContribution extends Disposable implements IWorkbenc
 				ctorDescriptor: new SyncDescriptor(McpServersListView, [{}]),
-				when: ContextKeyExpr.and(DefaultViewsContext, HasInstalledMcpServersContext, ChatContextKeys.Setup.hidden.negate(), ChatContextKeys.Setup.disabledInWorkspace.negate()),
+				when: ContextKeyExpr.and(DefaultViewsContext, HasInstalledMcpServersContext, ChatContextKeys.Setup.hidden.negate(), ChatContextKeys.Setup.disabledInWorkspace.negate(), ContextKeyExpr.has('config.chat.disableAIFeatures').negate()),
 				weight: 40,
@@ -554,3 +554,3 @@ export class McpServersViewsContribution extends Disposable implements IWorkbenc
 				ctorDescriptor: new SyncDescriptor(DefaultBrowseMcpServersView, [{}]),
-				when: ContextKeyExpr.and(DefaultViewsContext, HasInstalledMcpServersContext.toNegated(), ChatContextKeys.Setup.hidden.negate(), ChatContextKeys.Setup.disabledInWorkspace.negate(), McpServersGalleryStatusContext.isEqualTo(McpGalleryManifestStatus.Available), ContextKeyExpr.or(ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceUrlConfig}`), ProductQualityContext.notEqualsTo('stable'), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceEnablementConfig}`))),
+				when: ContextKeyExpr.and(DefaultViewsContext, HasInstalledMcpServersContext.toNegated(), ChatContextKeys.Setup.hidden.negate(), ChatContextKeys.Setup.disabledInWorkspace.negate(), McpServersGalleryStatusContext.isEqualTo(McpGalleryManifestStatus.Available), ContextKeyExpr.or(ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceUrlConfig}`), ProductQualityContext.notEqualsTo('stable'), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceEnablementConfig}`)), ContextKeyExpr.has('config.chat.disableAIFeatures').negate()),
 				weight: 40,
@@ -563,3 +563,3 @@ export class McpServersViewsContribution extends Disposable implements IWorkbenc
 				ctorDescriptor: new SyncDescriptor(McpServersListView, [{}]),
-				when: ContextKeyExpr.and(SearchMcpServersContext, ChatContextKeys.Setup.hidden.negate(), ChatContextKeys.Setup.disabledInWorkspace.negate(), McpServersGalleryStatusContext.isEqualTo(McpGalleryManifestStatus.Available), ContextKeyExpr.or(ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceUrlConfig}`), ProductQualityContext.notEqualsTo('stable'), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceEnablementConfig}`))),
+				when: ContextKeyExpr.and(SearchMcpServersContext, ChatContextKeys.Setup.hidden.negate(), ChatContextKeys.Setup.disabledInWorkspace.negate(), McpServersGalleryStatusContext.isEqualTo(McpGalleryManifestStatus.Available), ContextKeyExpr.or(ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceUrlConfig}`), ProductQualityContext.notEqualsTo('stable'), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceEnablementConfig}`)), ContextKeyExpr.has('config.chat.disableAIFeatures').negate()),
 			},
@@ -569,3 +569,3 @@ export class McpServersViewsContribution extends Disposable implements IWorkbenc
 				ctorDescriptor: new SyncDescriptor(DefaultBrowseMcpServersView, [{ showWelcome: true }]),
-				when: ContextKeyExpr.and(DefaultViewsContext, HasInstalledMcpServersContext.toNegated(), ChatContextKeys.Setup.hidden.negate(), ChatContextKeys.Setup.disabledInWorkspace.negate(), McpServersGalleryStatusContext.isEqualTo(McpGalleryManifestStatus.Available), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceUrlConfig}`).negate(), ProductQualityContext.isEqualTo('stable'), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceEnablementConfig}`).negate()),
+				when: ContextKeyExpr.and(DefaultViewsContext, HasInstalledMcpServersContext.toNegated(), ChatContextKeys.Setup.hidden.negate(), ChatContextKeys.Setup.disabledInWorkspace.negate(), McpServersGalleryStatusContext.isEqualTo(McpGalleryManifestStatus.Available), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceUrlConfig}`).negate(), ProductQualityContext.isEqualTo('stable'), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceEnablementConfig}`).negate(), ContextKeyExpr.has('config.chat.disableAIFeatures').negate()),
 				weight: 40,
@@ -578,3 +578,3 @@ export class McpServersViewsContribution extends Disposable implements IWorkbenc
 				ctorDescriptor: new SyncDescriptor(McpServersListView, [{ showWelcome: true }]),
-				when: ContextKeyExpr.and(SearchMcpServersContext, ChatContextKeys.Setup.hidden.negate(), ChatContextKeys.Setup.disabledInWorkspace.negate(), McpServersGalleryStatusContext.isEqualTo(McpGalleryManifestStatus.Available), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceUrlConfig}`).negate(), ProductQualityContext.isEqualTo('stable'), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceEnablementConfig}`).negate()),
+				when: ContextKeyExpr.and(SearchMcpServersContext, ChatContextKeys.Setup.hidden.negate(), ChatContextKeys.Setup.disabledInWorkspace.negate(), McpServersGalleryStatusContext.isEqualTo(McpGalleryManifestStatus.Available), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceUrlConfig}`).negate(), ProductQualityContext.isEqualTo('stable'), ContextKeyDefinedExpr.create(`config.${mcpGalleryServiceEnablementConfig}`).negate(), ContextKeyExpr.has('config.chat.disableAIFeatures').negate()),
 			}
diff --git a/src/vs/workbench/contrib/scm/browser/scm.contribution.ts b/src/vs/workbench/contrib/scm/browser/scm.contribution.ts
index 6bdf7f36..3bfc7d19 100644
--- a/src/vs/workbench/contrib/scm/browser/scm.contribution.ts
+++ b/src/vs/workbench/contrib/scm/browser/scm.contribution.ts
@@ -703,2 +703,3 @@ registerAction2(class extends Action2 {
 				when: ContextKeyExpr.and(
+					ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 					ChatContextKeys.Setup.hidden.negate(),
diff --git a/src/vs/workbench/contrib/scm/browser/scmInput.ts b/src/vs/workbench/contrib/scm/browser/scmInput.ts
index 6adf03c6..38a6d42c 100644
--- a/src/vs/workbench/contrib/scm/browser/scmInput.ts
+++ b/src/vs/workbench/contrib/scm/browser/scmInput.ts
@@ -848,2 +848,3 @@ registerAction2(class extends Action2 {
 				when: ContextKeyExpr.and(
+					ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 					ChatContextKeys.Setup.hidden.negate(),