diff --git a/src/Microsoft.Extensions.Configuration.AzureAppConfiguration/AzureAppConfigurationProvider.cs b/src/Microsoft.Extensions.Configuration.AzureAppConfiguration/AzureAppConfigurationProvider.cs
index fc92d129..36357504 100644
--- a/src/Microsoft.Extensions.Configuration.AzureAppConfiguration/AzureAppConfigurationProvider.cs
+++ b/src/Microsoft.Extensions.Configuration.AzureAppConfiguration/AzureAppConfigurationProvider.cs
@@ -1396,6 +1396,12 @@ private void EnsureAssemblyInspected()
 
                     _requestTracingOptions.AspireComponentVersion = TracingUtils.GetAssemblyVersion(RequestTracingConstants.AspireComponentAssemblyName);
 
+                    if (RequestTracingConstants.AzureAIAssemblyNames
+                        .Any(assemblyName => TracingUtils.GetAssemblyVersion(assemblyName) != null))
+                    {
+                        _requestTracingOptions.UsesAISdk = true;
+                    }
+
                     if (TracingUtils.GetAssemblyVersion(RequestTracingConstants.SignalRAssemblyName) != null)
                     {
                         _requestTracingOptions.IsSignalRUsed = true;
diff --git a/src/Microsoft.Extensions.Configuration.AzureAppConfiguration/Constants/RequestTracingConstants.cs b/src/Microsoft.Extensions.Configuration.AzureAppConfiguration/Constants/RequestTracingConstants.cs
index 5c4df33e..ac818d3d 100644
--- a/src/Microsoft.Extensions.Configuration.AzureAppConfiguration/Constants/RequestTracingConstants.cs
+++ b/src/Microsoft.Extensions.Configuration.AzureAppConfiguration/Constants/RequestTracingConstants.cs
@@ -33,6 +33,7 @@ internal class RequestTracingConstants
         public const string LoadBalancingEnabledTag = "LB";
         public const string AIConfigurationTag = "AI";
         public const string AIChatCompletionConfigurationTag = "AICC";
+        public const string UsesAISdkTag = "UsesAISdk";
         public const string SnapshotReferenceTag = "SnapshotRef";
         public const string SignalRUsedTag = "SignalR";
         public const string FailoverRequestTag = "Failover";
@@ -57,6 +58,14 @@ internal class RequestTracingConstants
         public const string AspireComponentAssemblyName = "Aspire.Microsoft.Extensions.Configuration.AzureAppConfiguration";
         public const string SignalRAssemblyName = "Microsoft.AspNetCore.SignalR";
 
+        public static readonly string[] AzureAIAssemblyNames = new string[]
+        {
+            "Azure.AI.Projects",
+            "Azure.AI.Inference",
+            "Azure.AI.OpenAI",
+            "Azure.AI.Projects.OpenAI"
+        };
+
         public const string Delimiter = "+";
 
         public const string AIMimeProfile = "https://azconfig.io/mime-profiles/ai";
diff --git a/src/Microsoft.Extensions.Configuration.AzureAppConfiguration/RequestTracingOptions.cs b/src/Microsoft.Extensions.Configuration.AzureAppConfiguration/RequestTracingOptions.cs
index 2f50a385..268aeae5 100644
--- a/src/Microsoft.Extensions.Configuration.AzureAppConfiguration/RequestTracingOptions.cs
+++ b/src/Microsoft.Extensions.Configuration.AzureAppConfiguration/RequestTracingOptions.cs
@@ -56,6 +56,11 @@ internal class RequestTracingOptions
         /// </summary>
         public string AspireComponentVersion { get; set; }
 
+        /// <summary>
+        /// Flag to indicate whether any Azure AI SDK assembly is present in the application.
+        /// </summary>
+        public bool UsesAISdk { get; set; } = false;
+
         /// <summary>
         /// Flag to indicate whether Microsoft.AspNetCore.SignalR assembly is present in the application.
         /// </summary>
diff --git a/src/Microsoft.Extensions.Configuration.AzureAppConfiguration/TracingUtils.cs b/src/Microsoft.Extensions.Configuration.AzureAppConfiguration/TracingUtils.cs
index 33050b5b..2738df37 100644
--- a/src/Microsoft.Extensions.Configuration.AzureAppConfiguration/TracingUtils.cs
+++ b/src/Microsoft.Extensions.Configuration.AzureAppConfiguration/TracingUtils.cs
@@ -211,6 +211,11 @@ private static string CreateCorrelationContextHeader(RequestType requestType, Re
                 correlationContextTags.Add(RequestTracingConstants.PushRefreshTag);
             }
 
+            if (requestTracingOptions.UsesAISdk)
+            {
+                correlationContextTags.Add(RequestTracingConstants.UsesAISdkTag);
+            }
+
             var sb = new StringBuilder();
 
             foreach (KeyValuePair<string, string> kvp in correlationContextKeyValues)