diff --git a/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts b/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
index d1232f9..51121f9 100644
--- a/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
+++ b/src/vs/workbench/contrib/chat/browser/actions/chatActions.ts
@@ -204,3 +204,4 @@ abstract class OpenChatGlobalAction extends Action2 {
 				ChatContextKeys.Setup.hidden.negate(),
-				ChatContextKeys.Setup.disabled.negate()
+				ChatContextKeys.Setup.disabled.negate(),
+				ContextKeyExpr.has('config.chat.disableAIFeatures').negate()
 			)
@@ -1161,3 +1162,3 @@ export function registerChatActions() {
 				precondition: ContextKeyExpr.and(
-					ChatContextKeys.Setup.installed,
+					ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 					ChatContextKeys.Setup.disabled.negate(),
@@ -1692,3 +1693,4 @@ 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 d50fc45..ffc8a5b 100644
--- a/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
+++ b/src/vs/workbench/contrib/chat/browser/chat.contribution.ts
@@ -1195,3 +1195,3 @@ 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/browser/chatSetup/chatSetupContributions.ts b/src/vs/workbench/contrib/chat/browser/chatSetup/chatSetupContributions.ts
index d110a65..226b99d 100644
--- a/src/vs/workbench/contrib/chat/browser/chatSetup/chatSetupContributions.ts
+++ b/src/vs/workbench/contrib/chat/browser/chatSetup/chatSetupContributions.ts
@@ -228,2 +228,3 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 						ChatContextKeys.Setup.untrusted,
+						ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 						ChatContextKeys.Setup.installed.negate(),
@@ -345,2 +346,3 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 							ChatContextKeys.Setup.hidden.negate(),
+							ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 							ChatContextKeys.Setup.installed.negate(),
@@ -512,2 +514,3 @@ export class ChatSetupContribution extends Disposable implements IWorkbenchContr
 			ChatContextKeys.Setup.disabled.negate(),
+			ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 			ChatContextKeys.Setup.installed.negate(),
diff --git a/src/vs/workbench/contrib/chat/common/actions/chatContextKeys.ts b/src/vs/workbench/contrib/chat/common/actions/chatContextKeys.ts
index 8e703e2..535b1d8 100644
--- a/src/vs/workbench/contrib/chat/common/actions/chatContextKeys.ts
+++ b/src/vs/workbench/contrib/chat/common/actions/chatContextKeys.ts
@@ -157,3 +157,3 @@ 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 9e82f11..0669f45 100644
--- a/src/vs/workbench/contrib/mcp/browser/mcpServersView.ts
+++ b/src/vs/workbench/contrib/mcp/browser/mcpServersView.ts
@@ -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(), 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,
@@ -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(), 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 8f2ea73..429e28f 100644
--- a/src/vs/workbench/contrib/scm/browser/scm.contribution.ts
+++ b/src/vs/workbench/contrib/scm/browser/scm.contribution.ts
@@ -705,3 +705,3 @@ 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/scmInput.ts b/src/vs/workbench/contrib/scm/browser/scmInput.ts
index bcc312c..f388856 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 {
 					ChatContextKeys.Setup.disabled.negate(),
+					ContextKeyExpr.has('config.chat.disableAIFeatures').negate(),
 					ChatContextKeys.Setup.installed.negate(),