diff --git a/app/Http/Controllers/Company/Ai/GenerationController.php b/app/Http/Controllers/Company/Ai/GenerationController.php
new file mode 100644
index 00000000..0cd49df1
--- /dev/null
+++ b/app/Http/Controllers/Company/Ai/GenerationController.php
@@ -0,0 +1,53 @@
+<?php
+
+namespace App\Http\Controllers\Company\Ai;
+
+use App\Http\Controllers\Controller;
+use App\Services\Ai\AiTextGenerationService;
+use App\Support\Ai\AiException;
+use Illuminate\Http\JsonResponse;
+use Illuminate\Http\Request;
+use Illuminate\Validation\ValidationException;
+
+class GenerationController extends Controller
+{
+    public function __construct(
+        private readonly AiTextGenerationService $generator,
+    ) {}
+
+    /**
+     * One-shot text generation for the WYSIWYG popup.
+     *
+     * Stateless — nothing is persisted. Each call is fully self-contained.
+     * Rate-limited via the shared 'ai' limiter so a stuck client can't
+     * hammer the provider.
+     *
+     * @throws ValidationException
+     */
+    public function __invoke(Request $request): JsonResponse
+    {
+        $this->authorize('use ai');
+
+        $validated = $this->validate($request, [
+            'prompt' => 'required|string|max:4000',
+            'context' => 'nullable|string|max:20000',
+        ]);
+
+        try {
+            $text = $this->generator->generate(
+                (int) $request->header('company'),
+                $validated['prompt'],
+                $validated['context'] ?? null,
+            );
+        } catch (AiException $e) {
+            return response()->json([
+                'error' => $e->errorKey,
+                'message' => $e->getMessage(),
+            ], 422);
+        }
+
+        return response()->json([
+            'text' => $text,
+        ]);
+    }
+}
diff --git a/app/Services/Ai/AiTextGenerationService.php b/app/Services/Ai/AiTextGenerationService.php
new file mode 100644
index 00000000..0cb441eb
--- /dev/null
+++ b/app/Services/Ai/AiTextGenerationService.php
@@ -0,0 +1,88 @@
+<?php
+
+namespace App\Services\Ai;
+
+use App\Services\AiConfigurationService;
+use App\Support\Ai\AiException;
+
+/**
+ * Stateless one-shot text generation for the WYSIWYG popup.
+ *
+ * Much simpler than the chat assistant — no conversation state, no tool calls,
+ * no history. Takes a user-authored instruction plus optional surrounding
+ * context (e.g. "here's the current editor content") and returns a single
+ * generated text blob the frontend can insert into the editor.
+ *
+ * The text-generation role is distinct from chat in two places:
+ *   - AiConfigurationService.text_generation_enabled gates availability
+ *   - ai_text_generation_model picks which model to use
+ *
+ * That means an instance can use a cheap fast model for one-shot writing
+ * (openai/gpt-4o-mini) while pointing chat at a smarter model
+ * (openai/gpt-4o) without config gymnastics.
+ */
+class AiTextGenerationService
+{
+    public function __construct(
+        private readonly AiConfigurationService $aiConfiguration,
+    ) {}
+
+    /**
+     * Generate text from a user instruction, optionally grounded in a context blob.
+     *
+     * @param  int  $companyId  Current company — resolves config and model selection
+     * @param  string  $prompt  User's instruction (e.g. "write a polite late-payment reminder")
+     * @param  string|null  $context  Optional surrounding content — usually the editor's
+     *                                current HTML/text, passed when the user wants the AI
+     *                                to work from existing copy
+     *
+     * @throws AiException When AI is disabled, text generation is off, or the driver call fails
+     */
+    public function generate(int $companyId, string $prompt, ?string $context = null): string
+    {
+        $driver = $this->aiConfiguration->makeDriver($companyId);
+
+        if ($driver === null) {
+            throw new AiException('AI is not enabled for this company', 'ai_disabled');
+        }
+
+        $resolved = $this->aiConfiguration->resolveForCompany($companyId);
+        if (empty($resolved['text_generation_enabled'])) {
+            throw new AiException('Text generation is not enabled for this company', 'text_generation_disabled');
+        }
+
+        $model = (string) ($resolved['ai_text_generation_model'] ?? '');
+        if ($model === '') {
+            throw new AiException('No text generation model configured', 'missing_model');
+        }
+
+        $fullPrompt = $this->buildPrompt($prompt, $context);
+
+        return trim($driver->textCompletion($fullPrompt, $model));
+    }
+
+    /**
+     * Compose the final prompt sent to the model.
+     *
+     * Keep the framing terse — text-generation output should not be padded
+     * with "Here is the text you requested:" preambles. The instruction is
+     * always placed last so the model gives it the most weight.
+     */
+    protected function buildPrompt(string $prompt, ?string $context): string
+    {
+        $system = "You are a helpful writing assistant embedded in an invoicing application. Generate text based on the user's instruction. Rules:\n"
+            .'- Return only the requested text. No preamble, no explanation, no markdown code fences.'."\n"
+            .'- Match the tone and language implied by the instruction.'."\n"
+            .'- Be concise unless explicitly asked for length.';
+
+        if ($context !== null && trim($context) !== '') {
+            return $system."\n\n"
+                ."Context (current content the user is working with):\n"
+                .trim($context)
+                ."\n\n"
+                ."Instruction: {$prompt}";
+        }
+
+        return $system."\n\nInstruction: {$prompt}";
+    }
+}
diff --git a/lang/en.json b/lang/en.json
index 93285158..b051ad13 100644
--- a/lang/en.json
+++ b/lang/en.json
@@ -964,7 +964,8 @@
         "missing_api_key": "An API key is required to test the connection.",
         "ai_disabled": "AI is not enabled for this company.",
         "chat_disabled": "The chat assistant is not enabled for this company.",
-        "missing_model": "No chat model is configured."
+        "text_generation_disabled": "Text generation is not enabled for this company.",
+        "missing_model": "No model is configured."
       }
     },
     "address_information": {
@@ -1895,6 +1896,18 @@
       "send": "Send",
       "sending": "Sending…",
       "input_placeholder": "Ask about your invoices, customers, or payments…"
+    },
+    "generate": {
+      "title": "AI Text Generation",
+      "prompt_label": "What should the AI write?",
+      "prompt_placeholder": "e.g. a polite late-payment reminder for an invoice that's 10 days overdue",
+      "use_current_as_context": "Use current content as context",
+      "use_context_help": "When enabled, the AI will see the editor's current text and can rewrite or extend it.",
+      "preview": "Preview",
+      "generate": "Generate",
+      "regenerate": "Regenerate",
+      "insert": "Insert",
+      "replace": "Replace"
     }
   }
 }
diff --git a/resources/scripts/api/endpoints.ts b/resources/scripts/api/endpoints.ts
index b22f0bb3..a9826053 100644
--- a/resources/scripts/api/endpoints.ts
+++ b/resources/scripts/api/endpoints.ts
@@ -131,6 +131,9 @@ export const API = {
   AI_CHAT: '/api/v1/ai/chat',
   AI_CONVERSATIONS: '/api/v1/ai/conversations',
 
+  // AI Text Generation (Phase 3)
+  AI_GENERATE: '/api/v1/ai/generate',
+
   // PDF Configuration
   PDF_DRIVERS: '/api/v1/pdf/drivers',
   PDF_CONFIG: '/api/v1/pdf/config',
diff --git a/resources/scripts/api/services/ai.service.ts b/resources/scripts/api/services/ai.service.ts
index 41029f3d..8ba429e8 100644
--- a/resources/scripts/api/services/ai.service.ts
+++ b/resources/scripts/api/services/ai.service.ts
@@ -6,6 +6,8 @@ import type {
   AiConversationDetail,
   AiConversationSummary,
   AiDriversResponse,
+  AiGenerateRequest,
+  AiGenerateResponse,
   AiTestPayload,
   AiTestResponse,
   CompanyAiConfig,
@@ -84,4 +86,11 @@ export const aiService = {
     const { data } = await client.delete(`${API.AI_CONVERSATIONS}/${id}`)
     return data
   },
+
+  // --- Phase 3: text generation ---
+
+  async generateText(payload: AiGenerateRequest): Promise<AiGenerateResponse> {
+    const { data } = await client.post(API.AI_GENERATE, payload)
+    return data
+  },
 }
diff --git a/resources/scripts/components/editor/RichEditor.vue b/resources/scripts/components/editor/RichEditor.vue
index 94d031ba..925a5355 100644
--- a/resources/scripts/components/editor/RichEditor.vue
+++ b/resources/scripts/components/editor/RichEditor.vue
@@ -94,8 +94,11 @@ import {
   Bars3BottomRightIcon,
   Bars3Icon,
   LinkIcon,
+  SparklesIcon,
 } from '@heroicons/vue/24/solid'
 import { ContentPlaceholder, ContentPlaceholderBox } from '../layout'
+import { useGlobalStore } from '@/scripts/stores/global.store'
+import { useModalStore } from '@/scripts/stores/modal.store'
 
 interface EditorButton {
   name: string
@@ -167,6 +170,34 @@ const editorButtons = ref<EditorButton[]>([
   },
 ])
 
+// AI text-generation button — shown only when the feature is enabled
+// for the current company. The flag is set once at bootstrap time so a
+// one-shot push is fine; no reactivity needed.
+const globalStore = useGlobalStore()
+const modalStore = useModalStore()
+if (globalStore.ai?.enabled && globalStore.ai?.text_generation_enabled) {
+  editorButtons.value.push({
+    name: 'aiGenerate',
+    icon: markRaw(SparklesIcon) as Component,
+    action: () => {
+      modalStore.openModal({
+        componentName: 'AiTextGenerationModal',
+        title: 'AI Text Generation',
+        size: 'md',
+        data: {
+          currentContent: editor.value?.getHTML() ?? '',
+          onInsert: (text: string) => {
+            editor.value?.chain().focus().insertContent(text).run()
+          },
+          onReplace: (text: string) => {
+            editor.value?.chain().focus().selectAll().deleteSelection().insertContent(text).run()
+          },
+        },
+      })
+    },
+  })
+}
+
 watch(
   () => props.modelValue,
   (newValue: string) => {
diff --git a/resources/scripts/features/shared/ai/AiTextGenerationModal.vue b/resources/scripts/features/shared/ai/AiTextGenerationModal.vue
new file mode 100644
index 00000000..3bd234df
--- /dev/null
+++ b/resources/scripts/features/shared/ai/AiTextGenerationModal.vue
@@ -0,0 +1,194 @@
+<script setup lang="ts">
+import { computed, ref } from 'vue'
+import { useI18n } from 'vue-i18n'
+import { useModalStore } from '@/scripts/stores/modal.store'
+import { useNotificationStore } from '@/scripts/stores/notification.store'
+import { aiService } from '@/scripts/api/services/ai.service'
+
+/**
+ * One-shot text generation popup for WYSIWYG editors.
+ *
+ * Usage pattern — a caller opens this modal via modalStore and passes data with:
+ *   - currentContent: string           // the editor's current HTML (used as optional context)
+ *   - onInsert: (text: string) => void // invoked when the user accepts "Insert"
+ *   - onReplace: (text: string) => void // invoked when the user accepts "Replace"
+ *
+ * See RichEditor.vue for the canonical caller. The modal doesn't know
+ * anything about tiptap or ProseMirror — it just hands back the text it got
+ * from the backend and lets the caller decide how to splice it into the editor.
+ */
+
+interface ModalData {
+  currentContent?: string
+  onInsert?: (text: string) => void
+  onReplace?: (text: string) => void
+}
+
+const { t } = useI18n()
+const modalStore = useModalStore()
+const notificationStore = useNotificationStore()
+
+const modalActive = computed<boolean>(
+  () => modalStore.active && modalStore.componentName === 'AiTextGenerationModal',
+)
+
+const data = computed<ModalData>(() => (modalStore.data as ModalData) ?? {})
+
+const prompt = ref<string>('')
+const useContext = ref<boolean>(false)
+const generatedText = ref<string>('')
+const isGenerating = ref<boolean>(false)
+
+const canInsert = computed<boolean>(() => generatedText.value.trim() !== '')
+
+async function generate(): Promise<void> {
+  if (!prompt.value.trim() || isGenerating.value) return
+
+  isGenerating.value = true
+  generatedText.value = ''
+
+  try {
+    const response = await aiService.generateText({
+      prompt: prompt.value,
+      context: useContext.value ? data.value.currentContent : undefined,
+    })
+
+    if (response.text !== undefined) {
+      generatedText.value = response.text
+    } else if (response.error) {
+      notificationStore.showNotification({
+        type: 'error',
+        message: t('settings.ai.errors.' + response.error, { error: response.message ?? '' }),
+      })
+    }
+  } catch (err: unknown) {
+    const message = err instanceof Error ? err.message : 'Unknown error'
+    notificationStore.showNotification({ type: 'error', message })
+  } finally {
+    isGenerating.value = false
+  }
+}
+
+function insert(): void {
+  data.value.onInsert?.(generatedText.value)
+  close()
+}
+
+function replace(): void {
+  data.value.onReplace?.(generatedText.value)
+  close()
+}
+
+function close(): void {
+  modalStore.closeModal()
+  setTimeout(() => {
+    prompt.value = ''
+    generatedText.value = ''
+    useContext.value = false
+  }, 200)
+}
+</script>
+
+<template>
+  <BaseModal :show="modalActive" @close="close">
+    <template #header>
+      <div class="flex items-center justify-between w-full">
+        <div class="flex items-center gap-2">
+          <BaseIcon name="SparklesIcon" class="w-5 h-5 text-primary-500" />
+          <span>{{ $t('ai.generate.title') }}</span>
+        </div>
+        <BaseIcon
+          name="XMarkIcon"
+          class="w-6 h-6 text-muted cursor-pointer"
+          @click="close"
+        />
+      </div>
+    </template>
+
+    <div class="p-6 space-y-4">
+      <BaseInputGroup
+        :label="$t('ai.generate.prompt_label')"
+        :content-loading="false"
+        required
+      >
+        <BaseTextarea
+          v-model="prompt"
+          rows="3"
+          :placeholder="$t('ai.generate.prompt_placeholder')"
+          :disabled="isGenerating"
+        />
+      </BaseInputGroup>
+
+      <div v-if="data.currentContent">
+        <BaseSwitch
+          v-model="useContext"
+          class="flex"
+          :label-right="$t('ai.generate.use_current_as_context')"
+        />
+        <p class="mt-1 text-xs text-muted">
+          {{ $t('ai.generate.use_context_help') }}
+        </p>
+      </div>
+
+      <div v-if="generatedText" class="border border-line-default rounded-md p-3 bg-surface-secondary">
+        <p class="text-xs text-muted mb-2">{{ $t('ai.generate.preview') }}</p>
+        <p class="text-sm text-body whitespace-pre-wrap">{{ generatedText }}</p>
+      </div>
+    </div>
+
+    <div class="flex justify-end gap-2 p-4 border-t border-line-default">
+      <BaseButton
+        variant="primary-outline"
+        type="button"
+        :disabled="isGenerating"
+        @click="close"
+      >
+        {{ $t('general.cancel') }}
+      </BaseButton>
+
+      <BaseButton
+        v-if="canInsert"
+        variant="primary-outline"
+        type="button"
+        :disabled="isGenerating"
+        @click="replace"
+      >
+        {{ $t('ai.generate.replace') }}
+      </BaseButton>
+
+      <BaseButton
+        v-if="canInsert"
+        variant="primary-outline"
+        type="button"
+        :disabled="isGenerating"
+        @click="generate"
+      >
+        {{ $t('ai.generate.regenerate') }}
+      </BaseButton>
+
+      <BaseButton
+        v-if="canInsert"
+        variant="primary"
+        type="button"
+        :disabled="isGenerating"
+        @click="insert"
+      >
+        {{ $t('ai.generate.insert') }}
+      </BaseButton>
+
+      <BaseButton
+        v-else
+        variant="primary"
+        type="button"
+        :loading="isGenerating"
+        :disabled="!prompt.trim() || isGenerating"
+        @click="generate"
+      >
+        <template #left="slotProps">
+          <BaseIcon v-if="!isGenerating" name="SparklesIcon" :class="slotProps.class" />
+        </template>
+        {{ $t('ai.generate.generate') }}
+      </BaseButton>
+    </div>
+  </BaseModal>
+</template>
diff --git a/resources/scripts/layouts/CompanyLayout.vue b/resources/scripts/layouts/CompanyLayout.vue
index 166c8e70..94291c3c 100644
--- a/resources/scripts/layouts/CompanyLayout.vue
+++ b/resources/scripts/layouts/CompanyLayout.vue
@@ -25,6 +25,9 @@
 
     <!-- AI chat drawer — always mounted, visibility driven by the store -->
     <AiChatDrawer v-if="globalStore.ai?.enabled && globalStore.ai?.chat_enabled" />
+
+    <!-- AI text generation modal — triggered from any RichEditor's Sparkles button -->
+    <AiTextGenerationModal v-if="globalStore.ai?.enabled && globalStore.ai?.text_generation_enabled" />
   </div>
 
   <BaseGlobalLoader v-else />
@@ -43,6 +46,7 @@ import SiteSidebar from './partials/SiteSidebar.vue'
 import NotificationRoot from '@/scripts/components/notifications/NotificationRoot.vue'
 import ImpersonationBanner from './partials/ImpersonationBanner.vue'
 import AiChatDrawer from '@/scripts/features/company/ai/components/AiChatDrawer.vue'
+import AiTextGenerationModal from '@/scripts/features/shared/ai/AiTextGenerationModal.vue'
 
 interface RouteMeta {
   ability?: string | string[]
diff --git a/resources/scripts/types/ai-config.ts b/resources/scripts/types/ai-config.ts
index efe7b671..3e0aa237 100644
--- a/resources/scripts/types/ai-config.ts
+++ b/resources/scripts/types/ai-config.ts
@@ -81,3 +81,16 @@ export interface AiConversationDetail {
   conversation: AiConversationSummary
   messages: AiChatMessage[]
 }
+
+// --- Phase 3: text generation types ---
+
+export interface AiGenerateRequest {
+  prompt: string
+  context?: string
+}
+
+export interface AiGenerateResponse {
+  text?: string
+  error?: string
+  message?: string
+}
diff --git a/routes/api.php b/routes/api.php
index 5644ec26..dbd742ac 100644
--- a/routes/api.php
+++ b/routes/api.php
@@ -18,6 +18,7 @@ use App\Http\Controllers\Admin\UsersController;
 use App\Http\Controllers\AppVersionController;
 use App\Http\Controllers\Company\Ai\ChatController as AiChatController;
 use App\Http\Controllers\Company\Ai\ConversationController as AiConversationController;
+use App\Http\Controllers\Company\Ai\GenerationController as AiGenerationController;
 use App\Http\Controllers\Company\Auth\AuthController;
 use App\Http\Controllers\Company\Auth\ForgotPasswordController;
 use App\Http\Controllers\Company\Auth\InvitationRegistrationController;
@@ -435,13 +436,15 @@ Route::prefix('/v1')->group(function () {
             Route::post('/company/ai/config', [CompanyAiConfigurationController::class, 'saveConfig']);
             Route::post('/company/ai/test', [CompanyAiConfigurationController::class, 'testConnection']);
 
-            // AI Chat — rate-limited via the 'ai' limiter defined in RouteServiceProvider
+            // AI Chat + text generation — rate-limited via the 'ai' limiter defined in RouteServiceProvider
             Route::middleware('throttle:ai')->group(function () {
                 Route::post('/ai/chat', AiChatController::class);
                 Route::get('/ai/conversations', [AiConversationController::class, 'index']);
                 Route::get('/ai/conversations/{id}', [AiConversationController::class, 'show']);
                 Route::patch('/ai/conversations/{id}', [AiConversationController::class, 'update']);
                 Route::delete('/ai/conversations/{id}', [AiConversationController::class, 'destroy']);
+
+                Route::post('/ai/generate', AiGenerationController::class);
             });
 
             // PDF Generation
diff --git a/tests/Feature/Ai/AiGenerationTest.php b/tests/Feature/Ai/AiGenerationTest.php
new file mode 100644
index 00000000..34b29aeb
--- /dev/null
+++ b/tests/Feature/Ai/AiGenerationTest.php
@@ -0,0 +1,144 @@
+<?php
+
+use App\Models\User;
+use App\Services\AiConfigurationService;
+use App\Support\Ai\AiChatResponse;
+use App\Support\Ai\AiDriver;
+use App\Support\Ai\AiDriverFactory;
+use Illuminate\Support\Facades\Artisan;
+use Laravel\Sanctum\Sanctum;
+
+use function Pest\Laravel\postJson;
+
+/**
+ * Scripted driver reused from AiChatFlowTest's strategy — tracks which prompt
+ * went into textCompletion() and echoes a canned reply.
+ */
+class TextGenDriver extends AiDriver
+{
+    public static ?string $lastPrompt = null;
+
+    public static ?string $lastModel = null;
+
+    public static string $reply = 'generated text';
+
+    public static int $callCount = 0;
+
+    public function chatCompletion(array $messages, string $model, array $tools = [], array $options = []): AiChatResponse
+    {
+        return new AiChatResponse(message: self::$reply);
+    }
+
+    public function textCompletion(string $prompt, string $model, array $options = []): string
+    {
+        self::$lastPrompt = $prompt;
+        self::$lastModel = $model;
+        self::$callCount++;
+
+        return self::$reply;
+    }
+
+    public function validateConnection(): array
+    {
+        return ['ok' => true];
+    }
+}
+
+beforeEach(function () {
+    Artisan::call('db:seed', ['--class' => 'DatabaseSeeder', '--force' => true]);
+    Artisan::call('db:seed', ['--class' => 'DemoSeeder', '--force' => true]);
+
+    $this->user = User::find(1);
+    $this->companyId = $this->user->companies()->first()->id;
+
+    $this->withHeaders(['company' => $this->companyId]);
+    Sanctum::actingAs($this->user, ['*']);
+
+    AiDriverFactory::register('textgen', TextGenDriver::class);
+    TextGenDriver::$lastPrompt = null;
+    TextGenDriver::$lastModel = null;
+    TextGenDriver::$callCount = 0;
+    TextGenDriver::$reply = 'generated text';
+
+    app(AiConfigurationService::class)->saveGlobalConfig([
+        'ai_enabled' => 'YES',
+        'ai_driver' => 'textgen',
+        'ai_api_key' => 'test-key',
+        'ai_text_generation_enabled' => 'YES',
+        'ai_text_generation_model' => 'test-textgen-model',
+    ]);
+});
+
+test('generate endpoint returns generated text for a valid prompt', function () {
+    TextGenDriver::$reply = 'Dear customer, your invoice is overdue.';
+
+    $response = postJson('/api/v1/ai/generate', [
+        'prompt' => 'Write a late payment reminder',
+    ])->assertOk();
+
+    expect($response->json('text'))->toBe('Dear customer, your invoice is overdue.');
+    expect(TextGenDriver::$lastModel)->toBe('test-textgen-model');
+    expect(TextGenDriver::$lastPrompt)->toContain('Write a late payment reminder');
+});
+
+test('generate endpoint includes context in the prompt when provided', function () {
+    postJson('/api/v1/ai/generate', [
+        'prompt' => 'Rewrite this in a friendlier tone',
+        'context' => 'PAY US NOW OR ELSE',
+    ])->assertOk();
+
+    expect(TextGenDriver::$lastPrompt)
+        ->toContain('Context (current content the user is working with):')
+        ->toContain('PAY US NOW OR ELSE')
+        ->toContain('Rewrite this in a friendlier tone');
+});
+
+test('generate endpoint omits context section when no context is supplied', function () {
+    postJson('/api/v1/ai/generate', [
+        'prompt' => 'Hello world',
+    ])->assertOk();
+
+    expect(TextGenDriver::$lastPrompt)->not->toContain('Context (current content');
+});
+
+test('generate endpoint rejects when AI is globally disabled', function () {
+    app(AiConfigurationService::class)->saveGlobalConfig(['ai_enabled' => 'NO']);
+
+    postJson('/api/v1/ai/generate', ['prompt' => 'Hi'])->assertStatus(422);
+});
+
+test('generate endpoint rejects when text_generation role is disabled', function () {
+    app(AiConfigurationService::class)->saveGlobalConfig([
+        'ai_enabled' => 'YES',
+        'ai_driver' => 'textgen',
+        'ai_api_key' => 'k',
+        'ai_text_generation_enabled' => 'NO',  // <— off
+        'ai_text_generation_model' => 'test',
+    ]);
+
+    postJson('/api/v1/ai/generate', ['prompt' => 'Hi'])->assertStatus(422);
+});
+
+test('generate endpoint validates prompt length', function () {
+    // Empty prompt → validation error
+    postJson('/api/v1/ai/generate', ['prompt' => ''])->assertStatus(422);
+
+    // Prompt over 4000 chars → validation error
+    postJson('/api/v1/ai/generate', ['prompt' => str_repeat('a', 4001)])->assertStatus(422);
+
+    // Context over 20k chars → validation error
+    postJson('/api/v1/ai/generate', [
+        'prompt' => 'Hi',
+        'context' => str_repeat('x', 20001),
+    ])->assertStatus(422);
+});
+
+test('generate endpoint trims whitespace from the driver response', function () {
+    TextGenDriver::$reply = "  \n\n  spaced out reply  \n\n  ";
+
+    $response = postJson('/api/v1/ai/generate', [
+        'prompt' => 'anything',
+    ])->assertOk();
+
+    expect($response->json('text'))->toBe('spaced out reply');
+});