diff --git a/src/appConfigurationImpl.ts b/src/appConfigurationImpl.ts
index 5d89508..e3d0722 100644
--- a/src/appConfigurationImpl.ts
+++ b/src/appConfigurationImpl.ts
@@ -43,7 +43,7 @@ import {
     CONDITIONS_KEY_NAME,
     CLIENT_FILTERS_KEY_NAME
 } from "./featureManagement/constants.js";
-import { FM_PACKAGE_NAME, AI_MIME_PROFILE, AI_CHAT_COMPLETION_MIME_PROFILE } from "./requestTracing/constants.js";
+import { FM_PACKAGE_NAME, AI_MIME_PROFILE, AI_CHAT_COMPLETION_MIME_PROFILE, AZURE_AI_PACKAGE_NAMES } from "./requestTracing/constants.js";
 import { parseContentType, isJsonContentType, isFeatureFlagContentType, isSecretReferenceContentType } from "./common/contentType.js";
 import { AzureKeyVaultKeyValueAdapter } from "./keyvault/keyVaultKeyValueAdapter.js";
 import { RefreshTimer } from "./refresh/refreshTimer.js";
@@ -86,6 +86,7 @@ export class AzureAppConfigurationImpl implements AzureAppConfiguration {
     #fmVersion: string | undefined;
     #aiConfigurationTracing: AIConfigurationTracingOptions | undefined;
     #useSnapshotReference: boolean = false;
+    #useAzureAI: boolean = false;
 
     // Refresh
     #refreshInProgress: boolean = false;
@@ -218,7 +219,8 @@ export class AzureAppConfigurationImpl implements AzureAppConfiguration {
             featureFlagTracing: this.#featureFlagTracing,
             fmVersion: this.#fmVersion,
             aiConfigurationTracing: this.#aiConfigurationTracing,
-            useSnapshotReference: this.#useSnapshotReference
+            useSnapshotReference: this.#useSnapshotReference,
+            usesAISdk: this.#useAzureAI
         };
     }
 
@@ -384,6 +386,7 @@ export class AzureAppConfigurationImpl implements AzureAppConfiguration {
     async #initializeWithRetryPolicy(abortSignal: AbortSignal): Promise<void> {
         if (!this.#isInitialLoadCompleted) {
             await this.#inspectFmPackage();
+            await this.#inspectAzureAIPackages();
             const startTimestamp = Date.now();
             let postAttempts = 0;
             do { // at least try to load once
@@ -437,6 +440,23 @@ export class AzureAppConfigurationImpl implements AzureAppConfiguration {
         }
     }
 
+    /**
+     * Inspects whether Azure AI packages are installed.
+     */
+    async #inspectAzureAIPackages() {
+        if (this.#requestTracingEnabled && !this.#useAzureAI) {
+            for (const packageName of AZURE_AI_PACKAGE_NAMES) {
+                try {
+                    await import(/* @vite-ignore */packageName);
+                    this.#useAzureAI = true;
+                    break; // Found one package, no need to check others
+                } catch {
+                    // Package not installed, continue checking
+                }
+            }
+        }
+    }
+
     async #refreshTasks(): Promise<void> {
         const refreshTasks: Promise<boolean>[] = [];
         if (this.#refreshEnabled || this.#secretRefreshEnabled) {
diff --git a/src/requestTracing/constants.ts b/src/requestTracing/constants.ts
index 2695d0b..41b3385 100644
--- a/src/requestTracing/constants.ts
+++ b/src/requestTracing/constants.ts
@@ -52,6 +52,7 @@ export const KEY_VAULT_CONFIGURED_TAG = "UsesKeyVault";
 export const KEY_VAULT_REFRESH_CONFIGURED_TAG = "RefreshesKeyVault";
 export const FAILOVER_REQUEST_TAG = "Failover";
 export const SNAPSHOT_REFERENCE_TAG = "SnapshotRef";
+export const AI_SDK_TAG = "UsesAISdk";
 
 // Compact feature tags
 export const FEATURES_KEY = "Features";
@@ -79,4 +80,7 @@ export const AI_CHAT_COMPLETION_CONFIGURATION_TAG = "AICC";
 export const AI_MIME_PROFILE = "https://azconfig.io/mime-profiles/ai";
 export const AI_CHAT_COMPLETION_MIME_PROFILE = "https://azconfig.io/mime-profiles/ai/chat-completion";
 
+// Azure AI SDK tracing
+export const AZURE_AI_PACKAGE_NAMES = ["@azure/ai-agents", "@azure/ai-projects", "@azure/openai", "@azure-rest/ai-inference"];
+
 export const DELIMITER = "+";
diff --git a/src/requestTracing/utils.ts b/src/requestTracing/utils.ts
index 3b1337e..2a2022a 100644
--- a/src/requestTracing/utils.ts
+++ b/src/requestTracing/utils.ts
@@ -42,7 +42,8 @@ import {
     DELIMITER,
     AI_CONFIGURATION_TAG,
     AI_CHAT_COMPLETION_CONFIGURATION_TAG,
-    SNAPSHOT_REFERENCE_TAG
+    SNAPSHOT_REFERENCE_TAG,
+    AI_SDK_TAG
 } from "./constants.js";
 
 export interface RequestTracingOptions {
@@ -55,6 +56,7 @@ export interface RequestTracingOptions {
     fmVersion: string | undefined;
     aiConfigurationTracing: AIConfigurationTracingOptions | undefined;
     useSnapshotReference: boolean;
+    usesAISdk: boolean;
 }
 
 // Utils
@@ -152,6 +154,9 @@ function createCorrelationContextHeader(requestTracingOptions: RequestTracingOpt
     if (requestTracingOptions.isFailoverRequest) {
         tags.push(FAILOVER_REQUEST_TAG);
     }
+    if (requestTracingOptions.usesAISdk) {
+        tags.push(AI_SDK_TAG);
+    }
     if (requestTracingOptions.replicaCount > 0) {
         keyValues.set(REPLICA_COUNT_KEY, requestTracingOptions.replicaCount.toString());
     }