diff --git a/apps/client/src/ee/ai/services/ai-search-service.ts b/apps/client/src/ee/ai/services/ai-search-service.ts
index 06c09e8a..0254f5b2 100644
--- a/apps/client/src/ee/ai/services/ai-search-service.ts
+++ b/apps/client/src/ee/ai/services/ai-search-service.ts
@@ -53,6 +53,9 @@ export async function askAi(
 
           try {
             const parsed = JSON.parse(data);
+            if (parsed.error) {
+              throw new Error(parsed.error);
+            }
             if (parsed.content) {
               answer += parsed.content;
               onChunk?.({ content: parsed.content });
@@ -62,6 +65,9 @@ export async function askAi(
               onChunk?.({ sources: parsed.sources });
             }
           } catch (e) {
+            if (e instanceof Error) {
+              throw e;
+            }
             // Skip invalid JSON
           }
         }
diff --git a/apps/client/src/features/search/components/search-spotlight.tsx b/apps/client/src/features/search/components/search-spotlight.tsx
index 2f45b67e..0351c1e2 100644
--- a/apps/client/src/features/search/components/search-spotlight.tsx
+++ b/apps/client/src/features/search/components/search-spotlight.tsx
@@ -4,6 +4,7 @@ import { Group, Button } from "@mantine/core";
 import React, { useState, useMemo, useEffect } from "react";
 import { useDebouncedValue } from "@mantine/hooks";
 import { useTranslation } from "react-i18next";
+import { notifications } from "@mantine/notifications";
 import { searchSpotlightStore } from "../constants.ts";
 import { SearchSpotlightFilters } from "./search-spotlight-filters.tsx";
 import { useUnifiedSearch } from "../hooks/use-unified-search.ts";
@@ -57,6 +58,8 @@ export function SearchSpotlight({ spaceId }: SearchSpotlightProps) {
     mutate: triggerAiSearchMutation,
     //@ts-ignore
     reset: resetAiMutation,
+    //@ts-ignore
+    error: aiSearchError,
     streamingAnswer,
     streamingSources,
     clearStreaming,
@@ -68,6 +71,17 @@ export function SearchSpotlight({ spaceId }: SearchSpotlightProps) {
     resetAiMutation();
   }, [query, clearStreaming, resetAiMutation]);
 
+  // Show error notification when AI search fails
+  useEffect(() => {
+    if (aiSearchError) {
+      notifications.show({
+        message: aiSearchError.message || t("AI search failed. Please try again."),
+        color: "red",
+        position: "top-center"
+      });
+    }
+  }, [aiSearchError, t]);
+
   // Determine result type for rendering
   const isAttachmentSearch =
     filters.contentType === "attachment" && (hasLicenseKey || isCloud());
diff --git a/apps/client/src/main.tsx b/apps/client/src/main.tsx
index f084b089..63a775de 100644
--- a/apps/client/src/main.tsx
+++ b/apps/client/src/main.tsx
@@ -51,7 +51,7 @@ root.render(
     <MantineProvider theme={theme} cssVariablesResolver={mantineCssResolver}>
       <ModalsProvider>
         <QueryClientProvider client={queryClient}>
-          <Notifications position="bottom-center" limit={3} />
+          <Notifications position="bottom-center" limit={3} zIndex={10000} />
           <HelmetProvider>
             <PostHogProvider client={posthog}>
               <App />