diff --git a/workspaces/ballerina/ballerina-extension/package.json b/workspaces/ballerina/ballerina-extension/package.json
index 01b5a682ed1..d0bdf609b8e 100644
--- a/workspaces/ballerina/ballerina-extension/package.json
+++ b/workspaces/ballerina/ballerina-extension/package.json
@@ -2,7 +2,7 @@
     "name": "ballerina",
     "displayName": "Ballerina",
     "description": "Ballerina Language support, debugging, graphical visualization, AI-based data-mapping and many more.",
-    "version": "5.7.3",
+    "version": "5.7.4",
     "publisher": "wso2",
     "icon": "resources/images/ballerina.png",
     "homepage": "https://wso2.com/ballerina/vscode/docs",
diff --git a/workspaces/ballerina/ballerina-extension/src/features/ai/constants.ts b/workspaces/ballerina/ballerina-extension/src/features/ai/constants.ts
index 517f8c9cdc8..b076633d1d6 100644
--- a/workspaces/ballerina/ballerina-extension/src/features/ai/constants.ts
+++ b/workspaces/ballerina/ballerina-extension/src/features/ai/constants.ts
@@ -16,6 +16,8 @@
  * under the License.
  */
 
+export const WI_EXTENSION_ID = 'wso2.wso2-integrator';
+
 export const CONFIG_FILE_NAME = "Config.toml";
 export const CONFIGURE_DEFAULT_MODEL_COMMAND = "ballerina.configureWso2DefaultModelProvider";
 
diff --git a/workspaces/ballerina/ballerina-extension/src/rpc-managers/ai-panel/rpc-manager.ts b/workspaces/ballerina/ballerina-extension/src/rpc-managers/ai-panel/rpc-manager.ts
index 3dc80ad8e1d..9b46f21f63c 100644
--- a/workspaces/ballerina/ballerina-extension/src/rpc-managers/ai-panel/rpc-manager.ts
+++ b/workspaces/ballerina/ballerina-extension/src/rpc-managers/ai-panel/rpc-manager.ts
@@ -45,7 +45,7 @@ import {
 } from "@wso2/ballerina-core";
 import * as fs from 'fs';
 import path from "path";
-import { workspace } from 'vscode';
+import { extensions, workspace } from 'vscode';
 import { URI } from "vscode-uri";
 
 import { isNumber } from "lodash";
@@ -79,6 +79,7 @@ import { cleanupTempProject } from "../../features/ai/utils/project/temp-project
 import { RPCLayer } from '../../RPCLayer';
 import { chatStateStorage } from '../../views/ai-panel/chatStateStorage';
 import { restoreWorkspaceSnapshot } from '../../views/ai-panel/checkpoint/checkpointUtils';
+import { WI_EXTENSION_ID } from "../../features/ai/constants";
 
 export class AiPanelRpcManager implements AIPanelAPI {
 
@@ -156,15 +157,29 @@ export class AiPanelRpcManager implements AIPanelAPI {
     }
 
     async showSignInAlert(): Promise<boolean> {
+        // Don't show alert in WI environment (WSO2 Integrator extension is installed)
+        const isInWI = !!extensions.getExtension(WI_EXTENSION_ID);
+        if (isInWI) {
+            return false;
+        }
+
+        // Don't show alert in Devant environment
+        const isInDevant = !!process.env.CLOUD_STS_TOKEN;
+        if (isInDevant) {
+            return false;
+        }
+
+        // Check if alert was already dismissed
         const resp = await extension.context.secrets.get('LOGIN_ALERT_SHOWN');
         if (resp === 'true') {
             return false;
         }
-        const isWso2Signed = await this.isCopilotSignedIn();
 
+        const isWso2Signed = await this.isCopilotSignedIn();
         if (isWso2Signed) {
             return false;
         }
+
         return true;
     }