diff --git a/src/client/extension.ts b/src/client/extension.ts
index df44d599..b4abbc16 100644
--- a/src/client/extension.ts
+++ b/src/client/extension.ts
@@ -33,7 +33,7 @@ import { disposeDiagnostics } from "./power-pages/validationDiagnostics";
 import { bootstrapDiff } from "./power-pages/bootstrapdiff/BootstrapDiff";
 import { CopilotNotificationShown } from "../common/copilot/telemetry/telemetryConstants";
 import { copilotNotificationPanel, disposeNotificationPanel } from "../common/copilot/welcome-notification/CopilotNotificationPanel";
-import { COPILOT_NOTIFICATION_DISABLED } from "../common/copilot/constants";
+import { COPILOT_NOTIFICATION_DISABLED, EXTENSION_VERSION_KEY } from "../common/copilot/constants";
 import { oneDSLoggerWrapper } from "../common/OneDSLoggerTelemetry/oneDSLoggerWrapper";
 import { OrgChangeNotifier, orgChangeEvent } from "./OrgChangeNotifier";
 import { ActiveOrgOutput } from "./pac/PacTypes";
@@ -41,7 +41,7 @@ import { desktopTelemetryEventNames } from "../common/OneDSLoggerTelemetry/clien
 import { ArtemisService } from "../common/services/ArtemisService";
 import { workspaceContainsPortalConfigFolder } from "../common/utilities/PathFinderUtil";
 import { getPortalsOrgURLs } from "../common/utilities/WorkspaceInfoFinderUtil";
-import { SUCCESS } from "../common/constants";
+import { EXTENSION_ID, SUCCESS } from "../common/constants";
 import { AadIdKey } from "../common/OneDSLoggerTelemetry/telemetryConstants";
 
 let client: LanguageClient;
@@ -419,6 +419,20 @@ function showNotificationForCopilot(telemetry: TelemetryReporter, telemetryData:
         return;
     }
 
+    const currentVersion = vscode.extensions.getExtension(EXTENSION_ID)?.packageJSON.version;
+    const storedVersion = _context.globalState.get(EXTENSION_VERSION_KEY);
+
+    if (!storedVersion || storedVersion !== currentVersion) {
+        // Show notification panel for the first load or after an update
+        telemetry.sendTelemetryEvent(CopilotNotificationShown, { listOfOrgs: telemetryData, countOfActivePortals });
+        oneDSLoggerWrapper.getLogger().traceInfo(CopilotNotificationShown, { listOfOrgs: telemetryData, countOfActivePortals });
+        copilotNotificationPanel(_context, telemetry, telemetryData, countOfActivePortals);
+
+        // Update the stored version to the current version
+        _context.globalState.update(EXTENSION_VERSION_KEY, currentVersion);
+        return;
+    }
+
     const isCopilotNotificationDisabled = _context.globalState.get(COPILOT_NOTIFICATION_DISABLED, false);
 
     if (!isCopilotNotificationDisabled) {
diff --git a/src/common/chat-participants/powerpages/PowerPagesChatParticipantConstants.ts b/src/common/chat-participants/powerpages/PowerPagesChatParticipantConstants.ts
index 454f07ca..6d4e9e31 100644
--- a/src/common/chat-participants/powerpages/PowerPagesChatParticipantConstants.ts
+++ b/src/common/chat-participants/powerpages/PowerPagesChatParticipantConstants.ts
@@ -34,7 +34,7 @@ export const LIST_PROMPT = vscode.l10n.t('Write JavaScript code to highlight the
 export const WELCOME_MESSAGE = vscode.l10n.t('Hi! @powerpages can help you write, edit, and even summarize your website code.')
 export const RESPONSE_AWAITED_MSG = vscode.l10n.t('Working on it...');
 export const AUTHENTICATION_FAILED_MSG = vscode.l10n.t('Authentication failed. Please try again.');
-export const COPILOT_NOT_AVAILABLE_MSG = vscode.l10n.t('Copilot is not available. Please contact your administrator.');
+export const COPILOT_NOT_AVAILABLE_MSG = vscode.l10n.t('AI features have been disabled by your organization. Contact your admin for details. [Learn more](https://go.microsoft.com/fwlink/?linkid=2285848)');
 export const PAC_AUTH_NOT_FOUND = vscode.l10n.t('Active auth profile is not found or has expired. Please try again.');
 export const INVALID_RESPONSE = vscode.l10n.t('Something went wrong. Don’t worry, you can try again.');
 export const DISCLAIMER_MESSAGE = vscode.l10n.t('Make sure AI-generated content is accurate and appropriate before using. [Learn more](https://go.microsoft.com/fwlink/?linkid=2240145) | [View terms](https://go.microsoft.com/fwlink/?linkid=2189520)');
diff --git a/src/common/copilot/constants.ts b/src/common/copilot/constants.ts
index 2a1b577f..6ff4072a 100644
--- a/src/common/copilot/constants.ts
+++ b/src/common/copilot/constants.ts
@@ -36,6 +36,7 @@ export const ATTRIBUTE_DATAFIELD_NAME = 'datafieldname';
 export const ATTRIBUTE_CLASSID = 'classid';
 export const SYSTEFORMS_API_PATH = 'api/data/v9.2/systemforms';
 export const COPILOT_IN_POWERPAGES = 'Copilot In Power Pages'
+export const EXTENSION_VERSION_KEY = 'extensionVersion';
 
 export type WebViewMessage = {
     type: string;
diff --git a/src/web/client/extension.ts b/src/web/client/extension.ts
index 73f5fb36..b135a292 100644
--- a/src/web/client/extension.ts
+++ b/src/web/client/extension.ts
@@ -33,7 +33,7 @@ import { PowerPagesNavigationProvider } from "./webViews/powerPagesNavigationPro
 import * as copilot from "../../common/copilot/PowerPagesCopilot";
 import { IOrgInfo } from "../../common/copilot/model";
 import { copilotNotificationPanel, disposeNotificationPanel } from "../../common/copilot/welcome-notification/CopilotNotificationPanel";
-import { COPILOT_NOTIFICATION_DISABLED } from "../../common/copilot/constants";
+import { COPILOT_NOTIFICATION_DISABLED, EXTENSION_VERSION_KEY } from "../../common/copilot/constants";
 import * as Constants from "./common/constants"
 import { oneDSLoggerWrapper } from "../../common/OneDSLoggerTelemetry/oneDSLoggerWrapper";
 import { GeoNames } from "../../common/OneDSLoggerTelemetry/telemetryConstants";
@@ -44,6 +44,7 @@ import { IPortalWebExtensionInitQueryParametersTelemetryData } from "../../commo
 import { ArtemisService } from "../../common/services/ArtemisService";
 import { showErrorDialog } from "../../common/utilities/errorHandlerUtil";
 import { ServiceEndpointCategory } from "../../common/services/Constants";
+import { EXTENSION_ID } from "../../common/constants";
 
 export function activate(context: vscode.ExtensionContext): void {
     // setup telemetry
@@ -623,11 +624,25 @@ function showNotificationForCopilot(context: vscode.ExtensionContext, orgId: str
         return;
     }
 
+    const currentVersion = vscode.extensions.getExtension(EXTENSION_ID)?.packageJSON.version;
+    const storedVersion = context.globalState.get(EXTENSION_VERSION_KEY);
+
+    if (!storedVersion || storedVersion !== currentVersion) {
+        // Show notification panel for the first load or after an update
+        WebExtensionContext.telemetry.sendInfoTelemetry(webExtensionTelemetryEventNames.WEB_EXTENSION_WEB_COPILOT_NOTIFICATION_SHOWN,
+            { orgId: orgId });
+        const telemetryData = JSON.stringify({ orgId: orgId });
+        copilotNotificationPanel(context, WebExtensionContext.telemetry.getTelemetryReporter(), telemetryData);
+
+        // Update the stored version to the current version
+        context.globalState.update(EXTENSION_VERSION_KEY, currentVersion);
+        return;
+    }
+
     const isCopilotNotificationDisabled = context.globalState.get(COPILOT_NOTIFICATION_DISABLED, false);
     if (!isCopilotNotificationDisabled) {
         WebExtensionContext.telemetry.sendInfoTelemetry(webExtensionTelemetryEventNames.WEB_EXTENSION_WEB_COPILOT_NOTIFICATION_SHOWN,
             { orgId: orgId });
-
         const telemetryData = JSON.stringify({ orgId: orgId });
         copilotNotificationPanel(context, WebExtensionContext.telemetry.getTelemetryReporter(), telemetryData);
     }