diff --git a/tools/azd-extension/java-on-ai-azd.json b/tools/azd-extension/java-on-ai-azd.json
new file mode 100644
index 0000000..3c714ba
--- /dev/null
+++ b/tools/azd-extension/java-on-ai-azd.json
@@ -0,0 +1,39 @@
+{
+    "$schema": "https://aka.ms/azd-extension-schema",
+    "name": "java-on-ai-extension",
+    "version": "1.1.0",
+    "description": "Java on AI AZD extension with bash",
+    "publisher": "Pete Tian",
+    "commands": [
+        {
+            "name": "collecte user information",
+            "description": "Before performing any additional actions, you’ll need to store your user info as an environment variable that you can use in subsequent steps.",
+            "entryPoint": "./lab2/collect-user-info.sh"
+        },
+        {
+            "name": "Create an Azure Container Apps environment",
+            "description": "With your user information stored in environment variables, you’re ready to begin the first step in the deployment: creating an Azure Container Apps instance.",
+            "entryPoint": "./lab-2/create-aca-env.sh"
+        },
+        {
+            "name": "Create an Azure Database for MySQL instance",
+            "description": "Create an Azure Database for MySQL - Flexible Server–hosted database.",
+            "entryPoint": "./lab-2/create-mysql.sh"
+        },
+        {
+            "name": "Set up a configuration repository",
+            "description": "Set up the application configuration settings that allow your Spring Boot application to connect with the database.",
+            "entryPoint": "./lab-2/create-container-registry.sh"
+        },
+        {
+            "name": "Create the Java components",
+            "description": "Configure the config, discovery, and admin applications.",
+            "entryPoint": "./lab-2/create-java-components.sh"
+        },
+        {
+            "name": "Deploy the component applications to Azure Container Apps",
+            "description": "Deploy the workload’s component applications to Azure.",
+            "entryPoint": "./lab-2/deploy-component-apps.sh"
+        }
+    ]
+}
\ No newline at end of file
diff --git a/tools/azd-extension/lab-2/collect-user-info.sh b/tools/azd-extension/lab-2/collect-user-info.sh
new file mode 100644
index 0000000..03f22ae
--- /dev/null
+++ b/tools/azd-extension/lab-2/collect-user-info.sh
@@ -0,0 +1,9 @@
+#!/bin/bash
+# Before performing any additional actions, store user info as an environment variable that
+# can be used in subsequent steps.
+
+export USER_NAME=$(az account show --query user.name --output tsv)
+echo "Current user:" $USER_NAME
+
+export AAD_USER_ID=$(az ad signed-in-user show --query id --output tsv)
+echo "Object ID:" $AAD_USER_ID
diff --git a/tools/azd-extension/lab-2/create-aca-env.sh b/tools/azd-extension/lab-2/create-aca-env.sh
new file mode 100644
index 0000000..a177587
--- /dev/null
+++ b/tools/azd-extension/lab-2/create-aca-env.sh
@@ -0,0 +1,91 @@
+#!/bin/bash
+# This script creates an Azure Container Apps environment with a dedicated plan and a virtual network.
+# It also creates a resource group and a virtual network with a subnet for the Azure Container Apps environment.
+
+random_element() {
+  local array=("$@")
+  echo "${array[RANDOM % ${#array[@]}]}"
+}
+
+UNIQUEID=$(openssl rand -hex 3)
+
+export APPNAME=petclinic
+export RESOURCE_GROUP=$(az group list --query "[?contains(name, '$APPNAME')].{Name:name}[0]" -o tsv)
+
+if [ -z "$RESOURCE_GROUP" ]; then
+    RESOURCE_GROUP=rg-$APPNAME-$UNIQUEID
+    LOCATION=westus
+    echo "Creating resource group [$RESOURCE_GROUP] in region [$LOCATION]..."
+    az group create -g $RESOURCE_GROUP -l $LOCATION
+else
+    LOCATION=$(az group show --name $RESOURCE_GROUP --query "location" -o tsv)
+    echo "Provisioning in resource group [$RESOURCE_GROUP]..."
+fi
+
+az configure --default group=$RESOURCE_GROUP
+
+#
+# Create VNET for Azure Container Apps Environment
+#
+VIRTUAL_NETWORK_NAME=vnet-$APPNAME-$UNIQUEID
+az network vnet create \
+    --resource-group $RESOURCE_GROUP \
+    --name $VIRTUAL_NETWORK_NAME \
+    --location $LOCATION \
+    --address-prefix 10.1.0.0/16
+
+ACA_SUBNET_CIDR=10.1.0.0/27
+az network vnet subnet create \
+    --resource-group $RESOURCE_GROUP \
+    --vnet-name $VIRTUAL_NETWORK_NAME \
+    --address-prefixes $ACA_SUBNET_CIDR \
+    --name aca-subnet \
+    --delegations Microsoft.App/environments
+
+SUBNET_ID="$(az network vnet subnet show --resource-group $RESOURCE_GROUP --vnet-name $VIRTUAL_NETWORK_NAME --name aca-subnet --query "id" -o tsv)"
+echo "Subnet ID: [$SUBNET_ID]"
+
+#
+# Creating the service on an Azure Container Apps Dedicated plan using the workload profiles option.
+# This plan gives you more advanced features than the alternative Azure Container Apps Consumption plan type
+#
+export ACA_ENVIRONMENT=acalab-env-$APPNAME-$UNIQUEID
+
+# If folder ../config does not exist, create it
+if [ ! -d "../config" ]; then
+    mkdir -p ../config
+fi
+AZURE_CONFIG_FILE="../config/azure-resource.profile"
+
+# winty is to accommodate git bash on Windows
+# Otherwise, SUBNET_ID will be appended with local drive path
+# NO_PATHCOW is for git bash on Windows
+export MSYS_NO_PATHCONV=1
+
+az containerapp env create \
+    -n $ACA_ENVIRONMENT \
+    -g $RESOURCE_GROUP \
+    --location $LOCATION \
+    --enable-workload-profiles true \
+    --infrastructure-subnet-resource-id "$SUBNET_ID" \
+    --logs-destination none
+
+export ACA_ENVIRONMENT_ID=$(az containerapp env show -n $ACA_ENVIRONMENT -g $RESOURCE_GROUP --query id -o tsv)
+
+# Write variables to the azure-resource.profile
+{
+    echo "RESOURCE_GROUP=$RESOURCE_GROUP"
+    echo "LOCATION=$LOCATION"
+    echo "UNIQUEID=$UNIQUEID"
+    echo "APPNAME=$APPNAME"
+    echo "ACA_ENVIRONMENT=$ACA_ENVIRONMENT"
+    echo "ACA_ENVIRONMENT_ID=$ACA_ENVIRONMENT_ID"
+} > $AZURE_CONFIG_FILE
+
+# Verify that the azure-resource.profile file is created properly
+if [ -f $AZURE_CONFIG_FILE ]; then
+    echo "azure-resource.profile file created successfully."
+else
+    echo "Error: azure-resource.profile file not created."
+    exit 1
+fi
diff --git a/tools/azd-extension/lab-2/create-container-registry.sh b/tools/azd-extension/lab-2/create-container-registry.sh
new file mode 100644
index 0000000..bc64ae0
--- /dev/null
+++ b/tools/azd-extension/lab-2/create-container-registry.sh
@@ -0,0 +1,70 @@
+#!/bin/bash
+#
+# Before deploying applications to the Azure Container Apps environment, an Azure Container Registry instance is needed that allows to build and save application container images. 
+# Allow the Container Apps environment to pull images from this new container registry.
+#
+# This script creates an Azure Container Registry (ACR) and a user managed identity for the Azure Container Apps environment.
+# The script also assigns the user managed identity to the ACR and grants it the necessary permissions to pull images from the registry.
+# The script uses the Azure CLI to create the ACR and user managed identity, and to assign the identity to the ACR.
+# The script also checks if the ACR and user managed identity already exist, and skips their creation if they do.
+# The script also exports the ACR and user managed identity names and IDs as environment variables, and appends them to the Azure configuration file.
+# The script also checks if the Azure Container Apps environment name exists, and exits with an error message if it does not.
+# The script also disables path conversion for MSYS (Git Bash) to avoid issues with file paths.
+
+
+AZURE_CONFIG_FILE="../config/azure-resource.profile"
+source $AZURE_CONFIG_FILE
+
+# Check if a container registry containing the string $APPNAME already exists
+MYACR=$(az acr list --resource-group $RESOURCE_GROUP --query "[?contains(name, '$APPNAME')].{Name:name}[0]" -o tsv)
+
+CR_UNIQUEID=$(openssl rand -hex 3)
+if [ -n "$MYACR" ]; then
+    echo "Container registry [$MYACR] already exists. Skipping creation."
+else    
+    MYACR=acr$APPNAME$CR_UNIQUEID
+    echo "Creating new container registry [$MYACR]..."
+    az acr create \
+        -n $MYACR \
+        -g $RESOURCE_GROUP \
+        --sku Basic \
+        --admin-enabled true
+fi
+
+# Check if ACA environment name containing string "acalab-env" exists
+if [ -z "$ACA_ENVIRONMENT" ]; then
+    echo "Error: ACA environment [$ACA_ENVIRONMENT] not found."
+    exit 1
+fi
+
+# Disable path conversion for MSYS (Git Bash)
+export MSYS_NO_PATHCONV=1
+
+# Create the identity that the container apps will use.
+export APPS_IDENTITY=uid-petclinic-$CR_UNIQUEID
+az identity create --resource-group $RESOURCE_GROUP --name $APPS_IDENTITY --output json
+
+APPS_IDENTITY_ID=$(az identity show --resource-group $RESOURCE_GROUP --name $APPS_IDENTITY --query id --output tsv)
+APPS_IDENTITY_SP_ID=$(az identity show --resource-group $RESOURCE_GROUP --name $APPS_IDENTITY --query principalId --output tsv)
+
+echo "Assign the user identity to your Azure Container Apps environment."
+az containerapp env identity assign -g $RESOURCE_GROUP -n $ACA_ENVIRONMENT --user-assigned $APPS_IDENTITY_ID
+
+# Grant the identity with the necessary privileges to pull images from the container registry.
+export ACR_ID=$(az acr show -n $MYACR -g $RESOURCE_GROUP --query id -o tsv)
+az role assignment create --assignee $APPS_IDENTITY_SP_ID --scope $ACR_ID --role acrpull
+
+# Export the variables
+export MYACR
+export APPS_IDENTITY
+export APPS_IDENTITY_ID
+export APPS_IDENTITY_SP_ID
+
+# Append the variables to the AZURE_CONFIG_FILE
+{
+    echo "MYACR=$MYACR"
+    echo "APPS_IDENTITY=$APPS_IDENTITY"
+    echo "APPS_IDENTITY_ID=$APPS_IDENTITY_ID"
+    echo "APPS_IDENTITY_SP_ID=$APPS_IDENTITY_SP_ID"
+    echo "ACR_ID=$ACR_ID"
+} >> $AZURE_CONFIG_FILE
\ No newline at end of file
diff --git a/tools/azd-extension/lab-2/create-java-components.sh b/tools/azd-extension/lab-2/create-java-components.sh
new file mode 100644
index 0000000..cf51836
--- /dev/null
+++ b/tools/azd-extension/lab-2/create-java-components.sh
@@ -0,0 +1,63 @@
+#!/bin/bash
+#
+# Configure the config, discovery, and admin applications. These are available as built-in components of Azure Container Apps.
+
+AZURE_CONFIG_FILE="../config/azure-resource.profile"
+source $AZURE_CONFIG_FILE
+
+# Check if ACA environment name exists
+if [ -z "$ACA_ENVIRONMENT" ]; then
+    echo "Error: ACA environment not found."
+    exit 1
+fi
+
+JAVA_CONFIG_COMP_NAME=configserver
+az containerapp env java-component config-server-for-spring create \
+    --environment $ACA_ENVIRONMENT \
+    --resource-group $RESOURCE_GROUP \
+    --name $JAVA_CONFIG_COMP_NAME \
+    --set-configuration spring.cloud.config.server.git.uri=$GIT_URI spring.cloud.config.server.git.search-paths=$SEARCH_PATH spring.cloud.config.server.git.default-label=$LABEL
+
+# Check the Spring Cloud Config Server Java component to confirm that it was successfully created.
+CONFIG_SERVER_EXISTS=$(az containerapp env java-component config-server-for-spring show \
+    --environment $ACA_ENVIRONMENT \
+    --resource-group $RESOURCE_GROUP \
+    --name $JAVA_CONFIG_COMP_NAME --query "name" -o tsv)
+
+if [ -z "$CONFIG_SERVER_EXISTS" ]; then
+    echo "Error: Config server was not successfully created."
+    exit 1
+fi
+
+# Create the Spring Cloud Eureka Server Java component. This will create a standard Eureka endpoint within 
+# the Container Apps environment. The Spring Petclinic workload will use this for discovery services.
+JAVA_EUREKA_COMP_NAME=eureka
+az containerapp env java-component eureka-server-for-spring create \
+    --environment $ACA_ENVIRONMENT \
+    --resource-group $RESOURCE_GROUP \
+    --name $JAVA_EUREKA_COMP_NAME \
+    --set-configuration eureka.server.response-cache-update-interval-ms=10000
+
+# Create a new Spring Boot Admin application and bind it to the Eureka Server 
+JAVA_SBA_COMP_NAME=springbootadmin
+az containerapp env java-component admin-for-spring create \
+    --environment $ACA_ENVIRONMENT \
+    --resource-group $RESOURCE_GROUP \
+    --name $JAVA_SBA_COMP_NAME \
+    --bind $JAVA_EUREKA_COMP_NAME \
+    --min-replicas 1 \
+    --max-replicas 1
+
+# Append the JAVA_EUREKA_COMP_NAME and JAVA_SBA_COMP_NAME to the AZURE_CONFIG_FILE
+{
+    echo "JAVA_EUREKA_COMP_NAME=$JAVA_EUREKA_COMP_NAME"
+    echo "JAVA_SBA_COMP_NAME=$JAVA_SBA_COMP_NAME"
+} >> $AZURE_CONFIG_FILE
+
+# Verify that the variables are appended to the azure-resource.profile file
+if grep -q "JAVA_EUREKA_COMP_NAME" $AZURE_CONFIG_FILE && grep -q "JAVA_SBA_COMP_NAME" $AZURE_CONFIG_FILE; then
+    echo "Variables appended to azure-resource.profile file successfully."
+else
+    echo "Error: Variables JAVA_EUREKA_COMP_NAME JAVA_SBA_COMP_NAME not appended to azure-resource.profile file."
+    exit 1
+fi
\ No newline at end of file
diff --git a/tools/azd-extension/lab-2/create-mysql.sh b/tools/azd-extension/lab-2/create-mysql.sh
new file mode 100644
index 0000000..aef9375
--- /dev/null
+++ b/tools/azd-extension/lab-2/create-mysql.sh
@@ -0,0 +1,58 @@
+#!/bin/bash
+
+AZURE_CONFIG_FILE="../config/azure-resource.profile"
+source $AZURE_CONFIG_FILE
+
+APPLICATION_CONFIG_FILE="../config/application-mysql.yml"
+
+# This script creates an Azure MySQL server and an Azure Container Registry (ACR) in a specified resource group.
+MYSQL_SERVER_NAME=mysql-$APPNAME-$UNIQUEID
+MYSQL_ADMIN_USERNAME=sqladmin
+MYSQL_ADMIN_PASSWORD=$(openssl rand -hex 12)
+DATABASE_NAME=petclinic
+
+az mysql flexible-server create \
+    --admin-user "$MYSQL_ADMIN_USERNAME" \
+    --admin-password "$MYSQL_ADMIN_PASSWORD" \
+    --name "$MYSQL_SERVER_NAME" \
+    --resource-group "$RESOURCE_GROUP" \
+    --public-access none \
+    --yes
+az mysql flexible-server db create \
+    --server-name $MYSQL_SERVER_NAME \
+    --resource-group $RESOURCE_GROUP \
+    -d $DATABASE_NAME
+
+#
+# Allow public access to the MySQL server
+#
+az mysql flexible-server firewall-rule create \
+    --rule-name allAzureIPs \
+    --name $MYSQL_SERVER_NAME \
+    --resource-group $RESOURCE_GROUP \
+    --start-ip-address 0.0.0.0 --end-ip-address 0.0.0.0
+
+# Set up a configuration repository
+# set up the application configuration settings that allow Spring Boot applications to connect with the database.
+echo "
+spring:
+    datasource:
+        url: jdbc:mysql://${MYSQL_SERVER_NAME}.mysql.database.azure.com:3306/$DATABASE_NAME?useSSL=true
+        username: ${MYSQL_ADMIN_USERNAME}
+        password: ${MYSQL_ADMIN_PASSWORD}
+    sql:
+        init:
+            schema-locations: classpath*:db/mysql/schema.sql
+            data-locations: classpath*:db/mysql/data.sql
+            mode: ALWAYS
+" > $APPLICATION_CONFIG_FILE
+
+export GIT_URI="https://github.com/Azure-Samples/java-on-aca.git"
+export SEARCH_PATH="config"
+export LABEL=main
+
+{
+    echo "GIT_URI=https://github.com/Azure-Samples/java-on-aca.git"
+    echo "SEARCH_PATH=config"
+    echo "LABEL=main"
+} >> $AZURE_CONFIG_FILE
diff --git a/tools/azd-extension/lab-2/deploy-component-apps.sh b/tools/azd-extension/lab-2/deploy-component-apps.sh
new file mode 100644
index 0000000..a6757a1
--- /dev/null
+++ b/tools/azd-extension/lab-2/deploy-component-apps.sh
@@ -0,0 +1,64 @@
+#!/bin/bash
+
+AZURE_CONFIG_FILE="../config/azure-resource.profile"
+source $AZURE_CONFIG_FILE
+
+SPRING_PETCLINIC_MICROSERIVCES="../../../spring-petclinic-microservices"
+
+# Check if the spring-petclinic-microservices directory exists
+if [ ! -d "$SPRING_PETCLINIC_MICROSERIVCES" ]; then
+    echo "Error: $SPRING_PETCLINIC_MICROSERIVCES directory does not exist."
+    # create the directory
+    mkdir -p $SPRING_PETCLINIC_MICROSERIVCES
+fi
+
+# Get the application code from public upstream repo, and then build the applications.
+cd ../../../spring-petclinic-microservices
+git submodule update --init
+mvn clean package -DskipTests
+
+# Build the Docker image using the Dockerfile
+DOCKERFILE="../tools/Dockerfile"
+if [ ! -f $DOCKERFILE ]; then
+    echo "$DOCKERFILE not found "
+    exit 1
+fi
+
+# if ACA environment does not exist, exit
+if [ -z "$ACA_ENVIRONMENT" ]; then
+    echo "Error: ACA environment [$ACA_ENVIRONMENT] not found."
+    exit 1
+fi
+
+APP_NAME="api-gateway"
+cp -f ../tools/Dockerfile ./spring-petclinic-$APP_NAME/Dockerfile
+
+# Disable path conversion for MSYS (Git Bash)
+export MSYS_NO_PATHCONV=1
+
+echo "az containerapp create \
+    --name $APP_NAME \
+    --resource-group $RESOURCE_GROUP \
+    --environment $ACA_ENVIRONMENT \
+    --source ./spring-petclinic-$APP_NAME \
+    --registry-server $MYACR.azurecr.io \
+    --registry-identity $APPS_IDENTITY_ID \
+    --ingress external \
+    --target-port 8080 \
+    --min-replicas 1 \
+    --bind $JAVA_CONFIG_COMP_NAME $JAVA_EUREKA_COMP_NAME \
+    --runtime java"
+
+az containerapp create \
+    --name $APP_NAME \
+    --resource-group $RESOURCE_GROUP \
+    --environment $ACA_ENVIRONMENT \
+    --source ./spring-petclinic-$APP_NAME \
+    --registry-server $MYACR.azurecr.io \
+    --registry-identity $APPS_IDENTITY_ID \
+    --ingress external \
+    --target-port 8080 \
+    --min-replicas 1 \
+    --bind $JAVA_CONFIG_COMP_NAME $JAVA_EUREKA_COMP_NAME \
+    --runtime java
+
diff --git a/tools/azd-extension/lab-2/lab-2-main.sh b/tools/azd-extension/lab-2/lab-2-main.sh
new file mode 100644
index 0000000..1706eff
--- /dev/null
+++ b/tools/azd-extension/lab-2/lab-2-main.sh
@@ -0,0 +1,23 @@
+#!/bin/bash
+
+echo "Starting Lab 2..."
+
+echo "Step 1: Collecting user information..."
+./collect-user-info.sh
+
+echo "Step 2: Creating Azure Container Apps environment..."
+./create-aca-env.sh
+
+echo "Step 3: Creating MySql instance..."
+./create-mysql.sh
+
+echo "Step 4: Creating Azure Container Registry..."
+./create-container-registry.sh
+
+echo "Step 5: Creating Java Spring Boot components..."
+./create-java-components.sh
+
+echo "Step 6: Deploy API Gateway..."
+./deploy-component-apps.sh
+
+echo "Lab 2 completed."
\ No newline at end of file
diff --git a/tools/azd-extension/lab-3/AzureOpenAiConfig.java b/tools/azd-extension/lab-3/AzureOpenAiConfig.java
new file mode 100644
index 0000000..b52155b
--- /dev/null
+++ b/tools/azd-extension/lab-3/AzureOpenAiConfig.java
@@ -0,0 +1,25 @@
+package org.springframework.samples.petclinic.chat;
+
+import org.springframework.ai.autoconfigure.azure.openai.AzureOpenAIClientBuilderCustomizer;
+
+import org.springframework.context.annotation.Bean;
+import org.springframework.context.annotation.Configuration;
+
+import com.azure.core.http.HttpClient;
+import com.azure.core.util.HttpClientOptions;
+
+import java.time.Duration;
+
+@Configuration
+public class AzureOpenAiConfig {
+
+	@Bean
+	public AzureOpenAIClientBuilderCustomizer responseTimeoutCustomizer() {
+		return openAiClientBuilder -> {
+			HttpClientOptions clientOptions = new HttpClientOptions()
+					.setResponseTimeout(Duration.ofMinutes(5));
+			openAiClientBuilder.httpClient(HttpClient.createDefault(clientOptions));
+		};
+	}
+
+}
\ No newline at end of file
diff --git a/tools/azd-extension/lab-3/ChatController.java b/tools/azd-extension/lab-3/ChatController.java
new file mode 100644
index 0000000..6ed0e59
--- /dev/null
+++ b/tools/azd-extension/lab-3/ChatController.java
@@ -0,0 +1,35 @@
+// filepath: /workspaces/java-on-aca/tools/spring-petclinic-chat-service/src/main/java/org/springframework/ai/azure/openai/ChatController.java
+package org.springframework.samples.petclinic.chat;
+
+import java.util.Map;
+
+import org.springframework.ai.azure.openai.AzureOpenAiChatModel;
+import org.springframework.ai.chat.messages.UserMessage;
+import org.springframework.ai.chat.model.ChatResponse;
+import org.springframework.ai.chat.prompt.Prompt;
+import org.springframework.beans.factory.annotation.Autowired;
+import org.springframework.web.bind.annotation.*;
+
+import reactor.core.publisher.Flux;
+
+@RestController
+public class ChatController {
+
+    private final AzureOpenAiChatModel chatModel;
+
+    @Autowired
+    public ChatController(AzureOpenAiChatModel chatModel) {
+        this.chatModel = chatModel;
+    }
+
+    @GetMapping("/ai/generate")
+    public Map<String, String> generate(@RequestParam(value = "message", defaultValue = "Tell me a joke") String message) {
+        return Map.of("generation", this.chatModel.call(message));
+    }
+
+    @GetMapping("/ai/generateStream")
+	public Flux<ChatResponse> generateStream(@RequestParam(value = "message", defaultValue = "Tell me a joke") String message) {
+        Prompt prompt = new Prompt(new UserMessage(message));
+        return this.chatModel.stream(prompt);
+    }
+}
\ No newline at end of file
diff --git a/tools/azd-extension/lab-3/create-ai-account.sh b/tools/azd-extension/lab-3/create-ai-account.sh
new file mode 100644
index 0000000..9349caf
--- /dev/null
+++ b/tools/azd-extension/lab-3/create-ai-account.sh
@@ -0,0 +1,49 @@
+#!/bin/bash
+AZURE_CONFIG_FILE="../config/azure-resource.profile"
+source $AZURE_CONFIG_FILE
+
+AI_LOCATION=$LOCATION
+
+OPEN_AI_SERVICE_NAME=open-ai-account-$UNIQUEID
+
+# Create a new Azure Cognitive Services account
+az cognitiveservices account create \
+   --resource-group $RESOURCE_GROUP \
+   --name $OPEN_AI_SERVICE_NAME \
+   --location $AI_LOCATION \
+   --kind OpenAI \
+   --sku s0 \
+   --custom-domain $OPEN_AI_SERVICE_NAME
+
+az cognitiveservices account deployment create \
+   --resource-group $RESOURCE_GROUP \
+   --name $OPEN_AI_SERVICE_NAME \
+   --deployment-name gpt-4o \
+   --model-name gpt-4o \
+   --model-version 2024-08-06 \
+   --model-format OpenAI \
+   --sku-name "GlobalStandard" \
+   --sku-capacity 10
+
+# Query the Azure OpenAI endpoint
+AZURE_OPENAI_ENDPOINT=$(az cognitiveservices account show \
+   --resource-group $RESOURCE_GROUP \
+   --name $OPEN_AI_SERVICE_NAME \
+   --query "properties.endpoint" \
+   --output tsv)
+
+# Query the Azure OpenAI API key
+AZURE_OPENAI_API_KEY=$(az cognitiveservices account keys list \
+   --resource-group $RESOURCE_GROUP \
+   --name $OPEN_AI_SERVICE_NAME \
+   --query "key1" \
+   --output tsv)
+
+# Export the endpoint and API key as environment variables
+export AZURE_OPENAI_ENDPOINT
+export AZURE_OPENAI_API_KEY
+{
+    echo "AZURE_OPENAI_ENDPOINT=$AZURE_OPENAI_ENDPOINT"
+    echo "AZURE_OPENAI_API_KEY=$AZURE_OPENAI_API_KEY"
+} >> $AZURE_CONFIG_FILE
+
diff --git a/tools/azd-extension/lab-3/create-spring-boot-ai.sh b/tools/azd-extension/lab-3/create-spring-boot-ai.sh
new file mode 100644
index 0000000..ba7ba48
--- /dev/null
+++ b/tools/azd-extension/lab-3/create-spring-boot-ai.sh
@@ -0,0 +1,101 @@
+#!/bin/bash
+
+AZURE_CONFIG_FILE="../config/azure-resource.profile"
+source $AZURE_CONFIG_FILE
+
+SPRING_PETCLINIC_MICROSERIVCES="../../../spring-petclinic-microservices"
+SPRING_PETCLINIC_CHAT_SERVICE="spring-petclinic-chat-service"
+
+cd $SPRING_PETCLINIC_MICROSERIVCES
+# Check if the spring-petclinic-chat-service directory exists
+if [ -d "$SPRING_PETCLINIC_CHAT_SERVICE" ]; then
+  # remove the directory
+  echo "Remove directory: $SPRING_PETCLINIC_CHAT_SERVICE."
+  rm -rf $SPRING_PETCLINIC_CHAT_SERVICE
+
+  echo "Recreate directory: $SPRING_PETCLINIC_CHAT_SERVICE."
+  # recreate the directory
+  mkdir -p $SPRING_PETCLINIC_CHAT_SERVICE
+fi
+
+ curl https://start.spring.io/starter.tgz \
+     -d dependencies=web,cloud-eureka,actuator,lombok,spring-ai-azure-openai \
+     -d name=chat-service -d type=maven-project \
+     -d jvmVersion=17 -d language=java -d packaging=jar \
+     -d groupId=org.springframework.samples.petclinic -d artifactId=chat \
+     -d description="Spring Petclinic Chat Service" \
+     | tar -xzvf - -C $SPRING_PETCLINIC_CHAT_SERVICE
+
+POM=$SPRING_PETCLINIC_CHAT_SERVICE/pom.xml
+SPRING_AI_VERSION="1.0.0-M6"
+
+# # update the spring-ai.version in the pom.xml
+# if grep -q "<spring-ai.version>" $POM; then
+#   sed -i "s|<spring-ai.version>.*</spring-ai.version>|<spring-ai.version>$SPRING_AI_VERSION</spring-ai.version>|" $POM
+# else
+#   sed -i "/<properties>/a \    <spring-ai.version>$SPRING_AI_VERSION</spring-ai.version>" $POM
+# fi
+
+{ 
+  echo "## AI VERSION"
+  echo "SPRING_AI_VERSION=$SPRING_AI_VERSION" 
+} >> $AZURE_CONFIG_FILE
+
+TEST_FILE="https://raw.githubusercontent.com/spring-projects/spring-ai/refs/heads/$SPRING_AI_VERSION/models/spring-ai-azure-openai/src/test/java/org/springframework/ai/azure/openai/AzureOpenAiChatClientIT.java"
+curl $TEST_FILE -o $SPRING_PETCLINIC_CHAT_SERVICE/src/main/resources/AzureOpenAiChatClientIT.java
+
+CHAT_CONFIGURE_JAVA="../tools/azd-extension/lab-3/AzureOpenAiConfig.java"
+CHAT_CONTROLLER_JAVA="../tools/azd-extension/lab-3/ChatController.java"
+APPLICATION_PROPERTIES="../tools/azd-extension/lab-3/application.properties"
+DOCKERFILE="../tools/Dockerfile"
+
+cp $CHAT_CONFIGURE_JAVA $SPRING_PETCLINIC_CHAT_SERVICE/src/main/java/org/springframework/samples/petclinic/chat
+cp $CHAT_CONTROLLER_JAVA $SPRING_PETCLINIC_CHAT_SERVICE/src/main/java/org/springframework/samples/petclinic/chat
+
+{
+  echo "spring.application.name=chat-service" 
+  echo "spring.ai.azure.openai.api-key=$AZURE_OPENAI_API_KEY"
+  echo "spring.ai.azure.openai.endpoint=$AZURE_OPENAI_ENDPOINT"
+  echo "spring.ai.azure.openai.chat.options.deployment-name=gpt-4o"
+  echo "spring.ai.azure.openai.chat.options.temperature=0.7"
+} > $APPLICATION_PROPERTIES
+
+cp $APPLICATION_PROPERTIES $SPRING_PETCLINIC_CHAT_SERVICE/src/main/resources/application.properties
+
+cd $SPRING_PETCLINIC_CHAT_SERVICE
+mvn clean package -DskipTests
+
+# Export the environment variables
+export AZURE_OPENAI_API_KEY="$AZURE_OPENAI_API_KEY"
+export AZURE_OPENAI_ENDPOINT="$AZURE_OPENAI_ENDPOINT"
+
+APP_NAME=chat-service
+
+cd ..
+echo "APPS_IDENTITY_ID: $APPS_IDENTITY_ID"
+
+cp -f $DOCKERFILE ./spring-petclinic-$APP_NAME/Dockerfile
+# Disable path conversion for MSYS (Git Bash)
+export MSYS_NO_PATHCONV=1
+az containerapp create \
+    --name $APP_NAME \
+    --resource-group $RESOURCE_GROUP \
+    --environment $ACA_ENVIRONMENT \
+    --source ./spring-petclinic-$APP_NAME \
+    --registry-server $MYACR.azurecr.io \
+    --registry-identity $APPS_IDENTITY_ID \
+    --ingress external \
+    --target-port 8080 \
+    --min-replicas 1 \
+    --bind $JAVA_CONFIG_COMP_NAME $JAVA_EUREKA_COMP_NAME \
+    --runtime java
+
+CHAT_URL=$(az containerapp show \
+  --resource-group $RESOURCE_GROUP \
+  --name $APP_NAME \
+  --query properties.configuration.ingress.fqdn \
+  -o tsv)
+
+echo "Chat service URL: $CHAT_URL"
+
+curl https://$CHAT_URL/ai/generate
diff --git a/tools/azd-extension/lab-3/lab-3-main.sh b/tools/azd-extension/lab-3/lab-3-main.sh
new file mode 100644
index 0000000..40926bf
--- /dev/null
+++ b/tools/azd-extension/lab-3/lab-3-main.sh
@@ -0,0 +1,21 @@
+#!/bin/bash
+
+set -e
+
+echo "Starting Lab 3..."
+
+echo "Step 1: Create AI account..."
+./create-ai-account.sh
+if [ $? -ne 0 ]; then
+    echo "Error: Step 1 failed. Exiting."
+    exit 1
+fi
+
+echo "Step 2: Create Spring Boot AI service..."
+./create-spring-boot-ai.sh
+if [ $? -ne 0 ]; then
+    echo "Error: Step 2 failed. Exiting."
+    exit 1
+fi
+
+echo "Lab 3 completed successfully."
\ No newline at end of file
diff --git a/tools/azd-extension/lab-4/config-app-insights.sh b/tools/azd-extension/lab-4/config-app-insights.sh
new file mode 100644
index 0000000..2535668
--- /dev/null
+++ b/tools/azd-extension/lab-4/config-app-insights.sh
@@ -0,0 +1,26 @@
+#!/bin/bash
+
+AZURE_CONFIG_FILE="../config/azure-resource.profile"
+source $AZURE_CONFIG_FILE
+export MSYS_NO_PATHCONV=1
+
+APP_INSIGHTS_NAME=app-insights-$APPNAME-$UNIQUEID
+az monitor app-insights component create \
+    --resource-group $RESOURCE_GROUP \
+    --app $APP_INSIGHTS_NAME \
+    --location $LOCATION \
+    --kind web \
+    --workspace $WORKSPACE_ID
+
+export APP_INSIGHTS_CONN=$(az monitor app-insights component show --app $APP_INSIGHTS_NAME -g $RESOURCE_GROUP --query connectionString --output tsv)
+
+"APP_INSIGHTS_CONN='$APP_INSIGHTS_CONN'" >> $AZURE_CONFIG_FILE
+
+APP_NAME="api-gateway"
+az containerapp update \
+    --name $APP_NAME \
+    --resource-group $RESOURCE_GROUP \
+    --set-env-vars JAVA_TOOL_OPTIONS='-javaagent:/applicationinsights-agent.jar' APPLICATIONINSIGHTS_CONNECTION_STRING="$APP_INSIGHTS_CONN" APPLICATIONINSIGHTS_CONFIGURATION_CONTENT='{"role": {"name": "'$APP_NAME'"}}'
+
+export RESOURCE_GROUP APP_INSIGHTS_CONN
+bash ../../update-apps-appinsights.sh
diff --git a/tools/azd-extension/lab-4/enable-log-analytics.sh b/tools/azd-extension/lab-4/enable-log-analytics.sh
new file mode 100644
index 0000000..1ee6d88
--- /dev/null
+++ b/tools/azd-extension/lab-4/enable-log-analytics.sh
@@ -0,0 +1,26 @@
+#!/bin/bash
+
+AZURE_CONFIG_FILE="../config/azure-resource.profile"
+source $AZURE_CONFIG_FILE
+
+WORKSPACE=la-$APPNAME-$UNIQUEID
+az monitor log-analytics workspace create \
+    --resource-group $RESOURCE_GROUP \
+    --workspace-name $WORKSPACE
+
+WORKSPACE_ID=$(az monitor log-analytics workspace show -n $WORKSPACE -g $RESOURCE_GROUP --query id -o tsv)
+WORKSPACE_CUSTOMER_ID=$(az monitor log-analytics workspace show -n $WORKSPACE -g $RESOURCE_GROUP --query customerId -o tsv)
+WORKSPACE_KEY=$(az monitor log-analytics workspace get-shared-keys -n $WORKSPACE -g $RESOURCE_GROUP --query primarySharedKey -o tsv)
+
+az containerapp env update \
+    --name $ACA_ENVIRONMENT \
+    --resource-group $RESOURCE_GROUP \
+    --logs-destination log-analytics \
+    --logs-workspace-id $WORKSPACE_CUSTOMER_ID \
+    --logs-workspace-key $WORKSPACE_KEY
+
+{
+    echo "WORKSPACE_ID=$WORKSPACE_ID"
+    echo "WORKSPACE_CUSTOMER_ID=$WORKSPACE_CUSTOMER_ID"
+    echo "WORKSPACE_KEY='$WORKSPACE_KEY'"
+} >> $AZURE_CONFIG_FILE
\ No newline at end of file
diff --git a/tools/azure-resource.profile.template b/tools/azure-resource.profile.template
index 4d9ccdc..32c2efb 100644
--- a/tools/azure-resource.profile.template
+++ b/tools/azure-resource.profile.template
@@ -1,4 +1,3 @@
-
 # Set all the variables with <> and keep the others unchanged
 
 # This part is for lab 2 & Lab 3
@@ -6,8 +5,9 @@
 # Pay attention to this, use command 'openssl rand -hex 3' to generate a unique id and put value here, don't put command here
 UNIQUEID=<unique-id>
 
+# To extract the subscription ID, use the following Azure CLI command:
+# az account show --query id --output tsv
 SUBSCRIPTION=<subscription-id>
-LOCATION=<region>
 
 APPNAME=petclinic
 RESOURCE_GROUP=rg-$APPNAME-$UNIQUEID
diff --git a/tools/create-azure-resource.sh b/tools/create-azure-resource.sh
index 99f0680..d0efa22 100755
--- a/tools/create-azure-resource.sh
+++ b/tools/create-azure-resource.sh
@@ -10,6 +10,9 @@ source $DIR/../.devcontainer/funcs.sh
 
 # Resource Group
 
+# Random regions for MySQL server
+LOCATION=$(random_element australiaeast brazilsouth eastasia eastus2 japaneast southindia swedencentral westus)
+
 az group create -g $RESOURCE_GROUP -l $LOCATION -o table
 
 az configure --default group=$RESOURCE_GROUP
@@ -17,20 +20,20 @@ az configure --default group=$RESOURCE_GROUP
 # MySQL server
 
 # Random regions for MySQL server
-SQL_LOCATION=$(random_element australiaeast brazilsouth eastasia eastus2 japaneast centralindia swedencentral westus)
+SQL_LOCATION=$(random_element australiaeast brazilsouth eastasia eastus2 japaneast southindia swedencentral westus)
 
 SQL_ID=$(az mysql flexible-server show --resource-group $RESOURCE_GROUP --name $MYSQL_SERVER_NAME -o tsv --query id 2>/dev/null)
 if [[ -n $SQL_ID ]]; then
     echo -e "${GREEN}INFO:${NC} MySQL server $MYSQL_SERVER_NAME already exists"
 else
-    echo -e "${YELLOW}INFO:${NC} Creating MySQL server $MYSQL_SERVER_NAME in region $SQL_LOCATION ..."
+    echo -e "${YELLOW}INFO:${NC} Creating MySQL server $MYSQL_SERVER_NAME in region $LOCATION ..."
 
     az mysql flexible-server create \
         --admin-user $MYSQL_ADMIN_USERNAME \
         --admin-password $MYSQL_ADMIN_PASSWORD \
         --name $MYSQL_SERVER_NAME \
         --resource-group $RESOURCE_GROUP \
-        --location $SQL_LOCATION \
+        --location $LOCATION \
         --public-access none \
         --yes
 fi
@@ -53,18 +56,16 @@ fi
 
 # Azure OpenAI Service
 
-AI_LOCATION=$(random_element australiaeast brazilsouth eastus2 japaneast southindia swedencentral westus)
-
 AI_ID=$(az cognitiveservices account show --resource-group $RESOURCE_GROUP --name $OPEN_AI_SERVICE_NAME -o tsv --query id 2>/dev/null)
 if [[ -n $ACR_ID ]]; then
     echo -e "${GREEN}INFO:${NC} OpenAI instance $OPEN_AI_SERVICE_NAME already exists"
 else
-    echo -e "${YELLOW}INFO:${NC} Creating OpenAI instance $OPEN_AI_SERVICE_NAME in region $AI_LOCATION ..."
+    echo -e "${YELLOW}INFO:${NC} Creating OpenAI instance $OPEN_AI_SERVICE_NAME in region $LOCATION ..."
 
     az cognitiveservices account create \
     --resource-group $RESOURCE_GROUP \
     --name $OPEN_AI_SERVICE_NAME \
-    --location $AI_LOCATION \
+    --location $LOCATION \
     --kind OpenAI \
     --sku s0 \
     --custom-domain $OPEN_AI_SERVICE_NAME \
@@ -127,13 +128,11 @@ fi
 
 # Azure Managed Grafana
 
-GRAFANA_LOCATION=$(random_element australiaeast brazilsouth centralindia eastasia eastus2 japaneast swedencentral westus)
-
 GRAFANA_ID=$(az grafana show --name $GRAFANA_NAME --resource-group $RESOURCE_GROUP -o tsv --query id 2>/dev/null)
 if [[ -n $GRAFANA_ID ]]; then
     echo -e "${GREEN}INFO:${NC} Grafana instance $GRAFANA_NAME already exists"
 else
-    echo -e "${YELLOW}INFO:${NC} Creating Grafana instance $GRAFANA_NAME in region $GRAFANA_LOCATION ..."
+    echo -e "${YELLOW}INFO:${NC} Creating Grafana instance $GRAFANA_NAME in region $LOCATION ..."
 
     az deployment group create \
         --resource-group $RESOURCE_GROUP \