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## I have read the [CONTRIBUTING.md](https://github.com/supabase/supabase/blob/master/CONTRIBUTING.md) file. YES ## What kind of change does this PR introduce? Chore / dependency upgrade. ## What is the current behavior? Studio is on AI SDK 6 (`ai` ^6.0.174, `@ai-sdk/react` ^3). Tool approvals still use the v6 `needsApproval` flag on individual tools. ## What is the new behavior? Upgrades Studio to AI SDK 7 (`ai` 7.0.59) and the matching `@ai-sdk/*` packages. Aligns call sites with v7 names (`instructions`, `isStepCount`, `onEnd`, `ToolExecutionOptions`). This is the bottom of stack #49171. Later layers add a shared Confirm card and AssistantQueryCell. ## Additional context - Stack: #49167 → #49168 → #49169 → #49170 - `needsApproval` on tools is left as-is in this PR so the upgrade can land independently. A follow-up can move those gates to `streamText({ toolApproval })` and `experimental_toolApprovalSecret`. - Independent of the notebook preview stack ([#49112](https://github.com/supabase/supabase/pull/49112), [#49159](https://github.com/supabase/supabase/pull/49159)), which should merge first before we wrap notebook proposals in Confirm. ## Test plan - [ ] `pnpm --filter studio test` for `lib/ai/tools/*` and assistant generate path - [ ] Assistant chat still streams and tool-approval SQL / Edge Function still pause for confirm - [ ] Evals still run with mock tools (`needsApproval: false` overrides) <!-- This is an auto-generated comment: release notes by coderabbit.ai --> ## Summary by CodeRabbit * **Improvements** * Updated AI-powered chat, onboarding, SQL, code completion, and recipe generation workflows for more reliable responses. * Streaming responses now better preserve reasoning and source information where available. * Improved tool privacy notices while preserving dynamically generated tool descriptions. * Refined AI response handling, including step limits and structured policy results. * **Bug Fixes** * Improved compatibility across AI-powered tool interactions and execution scenarios. <!-- end of auto-generated comment: release notes by coderabbit.ai -->