diff --git a/Svrnty.Sample/AI/Commands/ExecuteAgentCommand.cs b/Svrnty.Sample/AI/Commands/ExecuteAgentCommand.cs
new file mode 100644
index 0000000..a8e72a8
--- /dev/null
+++ b/Svrnty.Sample/AI/Commands/ExecuteAgentCommand.cs
@@ -0,0 +1,17 @@
+using Svrnty.CQRS.Grpc.Abstractions.Attributes;
+
+namespace Svrnty.Sample.AI.Commands;
+
+/// <summary>
+/// Command to execute an AI agent with a user prompt
+/// </summary>
+/// <param name="Prompt">The user's input prompt for the AI agent</param>
+[GrpcIgnore] // MVP: HTTP-only endpoint, gRPC support can be added later
+public record ExecuteAgentCommand(string Prompt);
+
+/// <summary>
+/// Response from the AI agent execution
+/// </summary>
+/// <param name="Content">The AI agent's response content</param>
+/// <param name="ConversationId">Unique identifier for this conversation</param>
+public record AgentResponse(string Content, Guid ConversationId);
diff --git a/Svrnty.Sample/AI/Commands/ExecuteAgentCommandHandler.cs b/Svrnty.Sample/AI/Commands/ExecuteAgentCommandHandler.cs
new file mode 100644
index 0000000..d874593
--- /dev/null
+++ b/Svrnty.Sample/AI/Commands/ExecuteAgentCommandHandler.cs
@@ -0,0 +1,107 @@
+using Microsoft.Extensions.AI;
+using Svrnty.CQRS.Abstractions;
+using Svrnty.Sample.AI.Tools;
+
+namespace Svrnty.Sample.AI.Commands;
+
+/// <summary>
+/// Handler for executing AI agent commands with function calling support
+/// </summary>
+public class ExecuteAgentCommandHandler(IChatClient chatClient) : ICommandHandler<ExecuteAgentCommand, AgentResponse>
+{
+    // In-memory conversation store (replace with proper persistence in production)
+    private static readonly Dictionary<Guid, List<ChatMessage>> ConversationStore = new();
+    private const int MaxFunctionCallIterations = 10; // Prevent infinite loops
+
+    public async Task<AgentResponse> HandleAsync(
+        ExecuteAgentCommand command,
+        CancellationToken cancellationToken = default)
+    {
+        var conversationId = Guid.NewGuid();
+        var messages = new List<ChatMessage>
+        {
+            new(ChatRole.User, command.Prompt)
+        };
+
+        // Register available tools
+        var mathTool = new MathTool();
+        var dbTool = new DatabaseQueryTool();
+        var tools = new List<AIFunction>
+        {
+            // Math tools
+            AIFunctionFactory.Create(mathTool.Add),
+            AIFunctionFactory.Create(mathTool.Multiply),
+
+            // Business tools
+            AIFunctionFactory.Create(dbTool.GetMonthlyRevenue),
+            AIFunctionFactory.Create(dbTool.GetRevenueRange),
+            AIFunctionFactory.Create(dbTool.CountCustomersByState),
+            AIFunctionFactory.Create(dbTool.CountCustomersByTier),
+            AIFunctionFactory.Create(dbTool.GetCustomers)
+        };
+
+        var options = new ChatOptions
+        {
+            ModelId = "qwen2.5-coder:7b",
+            Tools = tools.Cast<AITool>().ToList()
+        };
+
+        // Create function lookup by name for invocation
+        var functionLookup = tools.ToDictionary(
+            f => f.Metadata.Name,
+            f => f,
+            StringComparer.OrdinalIgnoreCase
+        );
+
+        // Initial AI completion
+        var completion = await chatClient.CompleteAsync(messages, options, cancellationToken);
+        messages.Add(completion.Message);
+
+        // Function calling loop - continue until no more function calls or max iterations
+        var iterations = 0;
+        while (completion.Message.Contents.OfType<FunctionCallContent>().Any() && iterations < MaxFunctionCallIterations)
+        {
+            iterations++;
+
+            // Execute all function calls from the response
+            foreach (var functionCall in completion.Message.Contents.OfType<FunctionCallContent>())
+            {
+                try
+                {
+                    // Look up the actual function
+                    if (!functionLookup.TryGetValue(functionCall.Name, out var function))
+                    {
+                        throw new InvalidOperationException($"Function '{functionCall.Name}' not found");
+                    }
+
+                    // Invoke the function with arguments
+                    var result = await function.InvokeAsync(functionCall.Arguments, cancellationToken);
+
+                    // Add function result to conversation as a tool message
+                    var toolMessage = new ChatMessage(ChatRole.Tool, result?.ToString() ?? "null");
+                    toolMessage.Contents.Add(new FunctionResultContent(functionCall.CallId, functionCall.Name, result));
+                    messages.Add(toolMessage);
+                }
+                catch (Exception ex)
+                {
+                    // Handle function call errors gracefully
+                    var errorMessage = new ChatMessage(ChatRole.Tool, $"Error executing {functionCall.Name}: {ex.Message}");
+                    errorMessage.Contents.Add(new FunctionResultContent(functionCall.CallId, functionCall.Name, $"Error: {ex.Message}"));
+                    messages.Add(errorMessage);
+                }
+            }
+
+            // Get next completion with function results
+            completion = await chatClient.CompleteAsync(messages, options, cancellationToken);
+            messages.Add(completion.Message);
+        }
+
+        // Store conversation for potential future use
+        ConversationStore[conversationId] = messages;
+
+        return new AgentResponse(
+            Content: completion.Message.Text ?? "No response",
+            ConversationId: conversationId
+        );
+    }
+}
diff --git a/Svrnty.Sample/AI/OllamaClient.cs b/Svrnty.Sample/AI/OllamaClient.cs
new file mode 100644
index 0000000..d55f8c9
--- /dev/null
+++ b/Svrnty.Sample/AI/OllamaClient.cs
@@ -0,0 +1,170 @@
+using Microsoft.Extensions.AI;
+using System.Text.Json;
+
+namespace Svrnty.Sample.AI;
+
+public sealed class OllamaClient(HttpClient http) : IChatClient
+{
+    public ChatClientMetadata Metadata => new("ollama", new Uri("http://localhost:11434"));
+
+    public async Task<ChatCompletion> CompleteAsync(
+        IList<ChatMessage> messages,
+        ChatOptions? options = null,
+        CancellationToken cancellationToken = default)
+    {
+        // Build messages array including tool results
+        var ollamaMessages = messages.Select(m => new
+        {
+            role = m.Role.ToString().ToLower(),
+            content = m.Text ?? string.Empty,
+            tool_call_id = m.Contents.OfType<FunctionResultContent>().FirstOrDefault()?.CallId
+        }).ToList();
+
+        // Build payload with optional tools
+        var payload = new Dictionary<string, object>
+        {
+            ["model"] = options?.ModelId ?? "qwen2.5-coder:7b",
+            ["messages"] = ollamaMessages,
+            ["stream"] = false
+        };
+
+        // Add tools if provided
+        if (options?.Tools is { Count: > 0 })
+        {
+            payload["tools"] = options.Tools.Select(BuildToolDefinition).ToArray();
+        }
+
+        var response = await http.PostAsJsonAsync("/api/chat", payload, cancellationToken);
+        response.EnsureSuccessStatusCode();
+
+        var json = await response.Content.ReadFromJsonAsync<JsonDocument>(cancellationToken);
+        var messageElement = json!.RootElement.GetProperty("message");
+
+        var content = messageElement.TryGetProperty("content", out var contentProp)
+            ? contentProp.GetString() ?? ""
+            : "";
+
+        var chatMessage = new ChatMessage(ChatRole.Assistant, content);
+
+        // Parse tool calls - handle both OpenAI format and text-based format
+        if (messageElement.TryGetProperty("tool_calls", out var toolCallsElement))
+        {
+            // OpenAI-style tool_calls format
+            foreach (var toolCall in toolCallsElement.EnumerateArray())
+            {
+                var function = toolCall.GetProperty("function");
+                var functionName = function.GetProperty("name").GetString()!;
+                var argumentsJson = function.GetProperty("arguments");
+
+                var arguments = ParseArguments(argumentsJson);
+
+                chatMessage.Contents.Add(new FunctionCallContent(
+                    callId: Guid.NewGuid().ToString(),
+                    name: functionName,
+                    arguments: arguments
+                ));
+            }
+        }
+        else if (!string.IsNullOrWhiteSpace(content) && content.TrimStart().StartsWith("{"))
+        {
+            // Text-based function call format (some models like qwen2.5-coder return this)
+            try
+            {
+                var functionCallJson = JsonDocument.Parse(content);
+                if (functionCallJson.RootElement.TryGetProperty("name", out var nameProp) &&
+                    functionCallJson.RootElement.TryGetProperty("arguments", out var argsProp))
+                {
+                    var functionName = nameProp.GetString()!;
+                    var arguments = ParseArguments(argsProp);
+
+                    chatMessage.Contents.Add(new FunctionCallContent(
+                        callId: Guid.NewGuid().ToString(),
+                        name: functionName,
+                        arguments: arguments
+                    ));
+                }
+            }
+            catch
+            {
+                // Not a function call, just regular content
+            }
+        }
+
+        return new ChatCompletion(chatMessage);
+    }
+
+    private static Dictionary<string, object?> ParseArguments(JsonElement argumentsJson)
+    {
+        var arguments = new Dictionary<string, object?>();
+        foreach (var prop in argumentsJson.EnumerateObject())
+        {
+            arguments[prop.Name] = prop.Value.ValueKind switch
+            {
+                JsonValueKind.Number => prop.Value.GetDouble(),
+                JsonValueKind.String => prop.Value.GetString(),
+                JsonValueKind.True => true,
+                JsonValueKind.False => false,
+                _ => prop.Value.ToString()
+            };
+        }
+        return arguments;
+    }
+
+    private static object BuildToolDefinition(AITool tool)
+    {
+        var functionInfo = tool.GetType().GetProperty("Metadata")?.GetValue(tool) as AIFunctionMetadata
+            ?? throw new InvalidOperationException("Tool must have Metadata property");
+
+        var parameters = new Dictionary<string, object>
+        {
+            ["type"] = "object",
+            ["properties"] = functionInfo.Parameters.ToDictionary(
+                p => p.Name,
+                p => new Dictionary<string, object>
+                {
+                    ["type"] = GetJsonType(p.ParameterType),
+                    ["description"] = p.Description ?? ""
+                }
+            ),
+            ["required"] = functionInfo.Parameters
+                .Where(p => p.IsRequired)
+                .Select(p => p.Name)
+                .ToArray()
+        };
+
+        return new
+        {
+            type = "function",
+            function = new
+            {
+                name = functionInfo.Name,
+                description = functionInfo.Description ?? "",
+                parameters
+            }
+        };
+    }
+
+    private static string GetJsonType(Type type)
+    {
+        if (type == typeof(int) || type == typeof(long) || type == typeof(short))
+            return "integer";
+        if (type == typeof(float) || type == typeof(double) || type == typeof(decimal))
+            return "number";
+        if (type == typeof(bool))
+            return "boolean";
+        if (type == typeof(string))
+            return "string";
+        return "object";
+    }
+
+    public IAsyncEnumerable<StreamingChatCompletionUpdate> CompleteStreamingAsync(
+        IList<ChatMessage> messages,
+        ChatOptions? options = null,
+        CancellationToken cancellationToken = default)
+        => throw new NotImplementedException("Streaming not supported in MVP");
+
+    public TService? GetService<TService>(object? key = null) where TService : class
+        => this as TService;
+
+    public void Dispose() { }
+}
diff --git a/Svrnty.Sample/AI/Tools/DatabaseQueryTool.cs b/Svrnty.Sample/AI/Tools/DatabaseQueryTool.cs
new file mode 100644
index 0000000..03fc232
--- /dev/null
+++ b/Svrnty.Sample/AI/Tools/DatabaseQueryTool.cs
@@ -0,0 +1,88 @@
+using System.ComponentModel;
+
+namespace Svrnty.Sample.AI.Tools;
+
+/// <summary>
+/// Business tool for querying database and business metrics
+/// </summary>
+public class DatabaseQueryTool
+{
+    // Simulated data - replace with actual database queries via CQRS
+    private static readonly Dictionary<string, decimal> MonthlyRevenue = new()
+    {
+        ["2025-01"] = 50000m,
+        ["2025-02"] = 45000m,
+        ["2025-03"] = 55000m,
+        ["2025-04"] = 62000m,
+        ["2025-05"] = 58000m,
+        ["2025-06"] = 67000m
+    };
+
+    private static readonly List<(string Name, string State, string Tier)> Customers = new()
+    {
+        ("Acme Corp", "California", "Enterprise"),
+        ("TechStart Inc", "California", "Startup"),
+        ("BigRetail LLC", "Texas", "Enterprise"),
+        ("SmallShop", "New York", "SMB"),
+        ("MegaCorp", "California", "Enterprise")
+    };
+
+    [Description("Get revenue for a specific month in YYYY-MM format")]
+    public decimal GetMonthlyRevenue(
+        [Description("Month in YYYY-MM format, e.g., 2025-01")] string month)
+    {
+        return MonthlyRevenue.TryGetValue(month, out var revenue) ? revenue : 0m;
+    }
+
+    [Description("Calculate total revenue between two months (inclusive)")]
+    public decimal GetRevenueRange(
+        [Description("Start month in YYYY-MM format")] string startMonth,
+        [Description("End month in YYYY-MM format")] string endMonth)
+    {
+        var total = 0m;
+        foreach (var kvp in MonthlyRevenue)
+        {
+            if (string.Compare(kvp.Key, startMonth, StringComparison.Ordinal) >= 0 &&
+                string.Compare(kvp.Key, endMonth, StringComparison.Ordinal) <= 0)
+            {
+                total += kvp.Value;
+            }
+        }
+        return total;
+    }
+
+    [Description("Count customers by state")]
+    public int CountCustomersByState(
+        [Description("US state name, e.g., California")] string state)
+    {
+        return Customers.Count(c => c.State.Equals(state, StringComparison.OrdinalIgnoreCase));
+    }
+
+    [Description("Count customers by tier (Enterprise, SMB, Startup)")]
+    public int CountCustomersByTier(
+        [Description("Customer tier: Enterprise, SMB, or Startup")] string tier)
+    {
+        return Customers.Count(c => c.Tier.Equals(tier, StringComparison.OrdinalIgnoreCase));
+    }
+
+    [Description("Get list of customer names by state and tier")]
+    public string GetCustomers(
+        [Description("US state name, optional")] string? state = null,
+        [Description("Customer tier, optional")] string? tier = null)
+    {
+        var filtered = Customers.AsEnumerable();
+
+        if (!string.IsNullOrWhiteSpace(state))
+        {
+            filtered = filtered.Where(c => c.State.Equals(state, StringComparison.OrdinalIgnoreCase));
+        }
+
+        if (!string.IsNullOrWhiteSpace(tier))
+        {
+            filtered = filtered.Where(c => c.Tier.Equals(tier, StringComparison.OrdinalIgnoreCase));
+        }
+
+        var names = filtered.Select(c => c.Name).ToList();
+        return names.Any() ? string.Join(", ", names) : "No customers found";
+    }
+}
diff --git a/Svrnty.Sample/AI/Tools/MathTool.cs b/Svrnty.Sample/AI/Tools/MathTool.cs
new file mode 100644
index 0000000..74ca7db
--- /dev/null
+++ b/Svrnty.Sample/AI/Tools/MathTool.cs
@@ -0,0 +1,12 @@
+using System.ComponentModel;
+
+namespace Svrnty.Sample.AI.Tools;
+
+public class MathTool
+{
+    [Description("Add two numbers together")]
+    public int Add(int a, int b) => a + b;
+
+    [Description("Multiply two numbers together")]
+    public int Multiply(int a, int b) => a * b;
+}
diff --git a/Svrnty.Sample/Program.cs b/Svrnty.Sample/Program.cs
index dda0ff4..759c616 100644
--- a/Svrnty.Sample/Program.cs
+++ b/Svrnty.Sample/Program.cs
@@ -1,8 +1,11 @@
 using Microsoft.AspNetCore.Server.Kestrel.Core;
+using Microsoft.Extensions.AI;
 using Svrnty.CQRS;
 using Svrnty.CQRS.FluentValidation;
 using Svrnty.CQRS.Grpc;
 using Svrnty.Sample;
+using Svrnty.Sample.AI;
+using Svrnty.Sample.AI.Commands;
 using Svrnty.CQRS.MinimalApi;
 using Svrnty.CQRS.DynamicQuery;
 using Svrnty.CQRS.Abstractions;
@@ -24,11 +27,20 @@ builder.Services.AddTransient<PoweredSoft.Data.Core.IAsyncQueryableService, Simp
 builder.Services.AddTransient<PoweredSoft.DynamicQuery.Core.IQueryHandlerAsync, PoweredSoft.DynamicQuery.QueryHandlerAsync>();
 builder.Services.AddDynamicQueryWithProvider<User, UserQueryableProvider>();
 
+// Register Ollama AI client
+builder.Services.AddHttpClient<IChatClient, OllamaClient>(client =>
+{
+    client.BaseAddress = new Uri("http://localhost:11434");
+});
+
 // Register commands and queries with validators
 builder.Services.AddCommand<AddUserCommand, int, AddUserCommandHandler, AddUserCommandValidator>();
 builder.Services.AddCommand<RemoveUserCommand, RemoveUserCommandHandler>();
 builder.Services.AddQuery<FetchUserQuery, User, FetchUserQueryHandler>();
 
+// Register AI agent command
+builder.Services.AddCommand<ExecuteAgentCommand, AgentResponse, ExecuteAgentCommandHandler>();
+
 // Configure CQRS with fluent API
 builder.Services.AddSvrntyCqrs(cqrs =>
 {
@@ -55,6 +67,34 @@ app.UseSvrntyCqrs();
 app.UseSwagger();
 app.UseSwaggerUI();
 
+// Health check endpoints
+app.MapGet("/health", () => Results.Ok(new { status = "healthy" }))
+    .WithTags("Health");
+
+app.MapGet("/health/ready", async (IChatClient client) =>
+{
+    try
+    {
+        var testMessages = new List<ChatMessage> { new(ChatRole.User, "ping") };
+        var response = await client.CompleteAsync(testMessages);
+        return Results.Ok(new
+        {
+            status = "ready",
+            ollama = "connected",
+            responseTime = response != null ? "ok" : "slow"
+        });
+    }
+    catch (Exception ex)
+    {
+        return Results.Json(new
+        {
+            status = "not_ready",
+            ollama = "disconnected",
+            error = ex.Message
+        }, statusCode: 503);
+    }
+})
+.WithTags("Health");
 
 Console.WriteLine("Auto-Generated gRPC Server with Reflection, Validation, MinimalApi and Swagger");
 Console.WriteLine("gRPC (HTTP/2): http://localhost:6000");
diff --git a/Svrnty.Sample/Svrnty.Sample.csproj b/Svrnty.Sample/Svrnty.Sample.csproj
index 2410a08..34bca67 100644
--- a/Svrnty.Sample/Svrnty.Sample.csproj
+++ b/Svrnty.Sample/Svrnty.Sample.csproj
@@ -20,6 +20,8 @@
       <IncludeAssets>runtime; build; native; contentfiles; analyzers; buildtransitive</IncludeAssets>
     </PackageReference>
     <PackageReference Include="Grpc.StatusProto" Version="2.71.0" />
+    <PackageReference Include="Microsoft.Extensions.AI" Version="9.0.0-preview.9.24556.5" />
+    <PackageReference Include="Microsoft.Extensions.AI.Ollama" Version="9.0.0-preview.9.24556.5" />
     <PackageReference Include="Swashbuckle.AspNetCore" Version="9.0.6" />
   </ItemGroup>