diff --git a/ai/classes/manager.php b/ai/classes/manager.php
index 99290b63cb9..acf2fcabf98 100644
--- a/ai/classes/manager.php
+++ b/ai/classes/manager.php
@@ -73,13 +73,15 @@ class manager {
         foreach ($actions as $action) {
             $providers[$action] = [];
             foreach ($plugins as $plugin) {
-                if ($enabledonly && (!$plugin->is_enabled() || !static::is_action_enabled($plugin->component, $action))) {
+                $pluginclassname = static::get_ai_plugin_classname($plugin->component);
+                $provider = new $pluginclassname();
+                // Check the plugin is enabled and the provider is configured before making the action available.
+                if ($enabledonly && (!$plugin->is_enabled() || !static::is_action_enabled($plugin->component, $action)) ||
+                        $enabledonly && !$provider->is_provider_configured()) {
                     continue;
                 }
-                $pluginclassname = static::get_ai_plugin_classname($plugin->component);
-                $plugin = new $pluginclassname();
-                if (in_array($action, $plugin->get_action_list())) {
-                    $providers[$action][] = $plugin;
+                if (in_array($action, $provider->get_action_list())) {
+                    $providers[$action][] = $provider;
                 }
             }
         }
diff --git a/ai/classes/provider.php b/ai/classes/provider.php
index 1dc1afc5d61..b53b3687e17 100644
--- a/ai/classes/provider.php
+++ b/ai/classes/provider.php
@@ -71,4 +71,13 @@ abstract class provider {
     ): array {
         return [];
     }
+
+    /**
+     * Check if a provider has the minimal configuration to work.
+     *
+     * @return bool Return true if configured.
+     */
+    public function is_provider_configured(): bool {
+        return false;
+    }
 }
diff --git a/ai/placement/courseassist/tests/behat/course_assist_summarise.feature b/ai/placement/courseassist/tests/behat/course_assist_summarise.feature
index fff39485a70..52e2b6f5711 100644
--- a/ai/placement/courseassist/tests/behat/course_assist_summarise.feature
+++ b/ai/placement/courseassist/tests/behat/course_assist_summarise.feature
@@ -26,6 +26,9 @@ Feature: AI Course assist summarise
       | aiplacement/courseassist:summarise_text | Prohibit   | custom2 | Course       | C1        |
     And I log in as "admin"
     And I enable "openai" "aiprovider" plugin
+    And the following config values are set as admin:
+      | apikey | 123 | aiprovider_openai |
+      | orgid  | abc | aiprovider_openai |
     And I enable "courseassist" "aiplacement" plugin
 
   @javascript
diff --git a/ai/placement/courseassist/tests/utils_test.php b/ai/placement/courseassist/tests/utils_test.php
index c3111fe4e14..056c49546da 100644
--- a/ai/placement/courseassist/tests/utils_test.php
+++ b/ai/placement/courseassist/tests/utils_test.php
@@ -46,6 +46,8 @@ final class utils_test extends \advanced_testcase {
         $this->assertFalse(utils::is_course_assist_available($context));
 
         set_config('enabled', 1, 'aiprovider_openai');
+        set_config('apikey', '123', 'aiprovider_openai');
+        set_config('orgid', 'abc', 'aiprovider_openai');
 
         // Plugin is not enabled.
         $this->setUser($user1);
@@ -55,7 +57,6 @@ final class utils_test extends \advanced_testcase {
         // Plugin is enabled but user does not have capability.
         assign_capability('aiplacement/courseassist:summarise_text', CAP_PROHIBIT, $teacherrole->id, $context);
         $this->setUser($user2);
-        set_config('enabled', 1, 'aiprovider_openai');
         set_config('enabled', 1, 'aiplacement_courseassist');
         $this->assertFalse(utils::is_course_assist_available($context));
 
diff --git a/ai/placement/editor/tests/utils_test.php b/ai/placement/editor/tests/utils_test.php
index 685254cf3c1..d3fb3e75ef8 100644
--- a/ai/placement/editor/tests/utils_test.php
+++ b/ai/placement/editor/tests/utils_test.php
@@ -72,6 +72,8 @@ final class utils_test extends \advanced_testcase {
         ));
 
         set_config('enabled', 1, 'aiprovider_openai');
+        set_config('apikey', '123', 'aiprovider_openai');
+        set_config('orgid', 'abc', 'aiprovider_openai');
 
         // Plugin is not enabled.
         $this->setUser($this->users[1]);
@@ -85,7 +87,6 @@ final class utils_test extends \advanced_testcase {
         // Plugin is enabled but user does not have capability.
         assign_capability("aiplacement/editor:{$actionname}", CAP_PROHIBIT, $this->teacherrole->id, $this->context);
         $this->setUser($this->users[2]);
-        set_config('enabled', 1, 'aiprovider_openai');
         set_config('enabled', 1, 'aiplacement_editor');
         $this->assertFalse(utils::is_html_editor_placement_action_available(
             context: $this->context,
diff --git a/ai/provider/azureai/classes/provider.php b/ai/provider/azureai/classes/provider.php
index 4d05d825bb4..e689070da23 100644
--- a/ai/provider/azureai/classes/provider.php
+++ b/ai/provider/azureai/classes/provider.php
@@ -190,4 +190,12 @@ class provider extends \core_ai\provider {
         return $settings;
     }
 
+    /**
+     * Check this provider has the minimal configuration to work.
+     *
+     * @return bool Return true if configured.
+     */
+    public function is_provider_configured(): bool {
+        return !empty($this->apikey) && !empty($this->apiendpoint);
+    }
 }
diff --git a/ai/provider/azureai/tests/provider_test.php b/ai/provider/azureai/tests/provider_test.php
index d6140da2c10..6bc549074f1 100644
--- a/ai/provider/azureai/tests/provider_test.php
+++ b/ai/provider/azureai/tests/provider_test.php
@@ -110,4 +110,27 @@ final class provider_test extends \advanced_testcase {
         $this->assertFalse($result['success']);
         $this->assertEquals('Global rate limit exceeded', $result['errormessage']);
     }
+
+    /**
+     * Test is_provider_configured.
+     */
+    public function test_is_provider_configured(): void {
+        $this->resetAfterTest();
+
+        // No configured values.
+        $provider = new \aiprovider_azureai\provider();
+        $this->assertFalse($provider->is_provider_configured());
+
+        // Partially configured values.
+        set_config('apikey', '123', 'aiprovider_azureai');
+        set_config('endpoint', '', 'aiprovider_azureai');
+        $provider = new \aiprovider_azureai\provider();
+        $this->assertFalse($provider->is_provider_configured());
+
+        // Properly configured values.
+        set_config('apikey', '123', 'aiprovider_azureai');
+        set_config('endpoint', 'abc', 'aiprovider_azureai');
+        $provider = new \aiprovider_azureai\provider();
+        $this->assertTrue($provider->is_provider_configured());
+    }
 }
diff --git a/ai/provider/openai/classes/provider.php b/ai/provider/openai/classes/provider.php
index 07847687136..5573187fa6f 100644
--- a/ai/provider/openai/classes/provider.php
+++ b/ai/provider/openai/classes/provider.php
@@ -207,4 +207,13 @@ class provider extends \core_ai\provider {
 
         return $settings;
     }
+
+    /**
+     * Check this provider has the minimal configuration to work.
+     *
+     * @return bool Return true if configured.
+     */
+    public function is_provider_configured(): bool {
+        return !empty($this->apikey) && !empty($this->orgid);
+    }
 }
diff --git a/ai/provider/openai/tests/provider_test.php b/ai/provider/openai/tests/provider_test.php
index d1a9ae44ae6..be888d3f9b2 100644
--- a/ai/provider/openai/tests/provider_test.php
+++ b/ai/provider/openai/tests/provider_test.php
@@ -110,4 +110,27 @@ final class provider_test extends \advanced_testcase {
         $this->assertFalse($result['success']);
         $this->assertEquals('Global rate limit exceeded', $result['errormessage']);
     }
+
+    /**
+     * Test is_provider_configured.
+     */
+    public function test_is_provider_configured(): void {
+        $this->resetAfterTest();
+
+        // No configured values.
+        $provider = new \aiprovider_openai\provider();
+        $this->assertFalse($provider->is_provider_configured());
+
+        // Partially configured values.
+        set_config('apikey', '123', 'aiprovider_openai');
+        set_config('orgid', '', 'aiprovider_openai');
+        $provider = new \aiprovider_openai\provider();
+        $this->assertFalse($provider->is_provider_configured());
+
+        // Properly configured values.
+        set_config('apikey', '123', 'aiprovider_openai');
+        set_config('orgid', 'abc', 'aiprovider_openai');
+        $provider = new \aiprovider_openai\provider();
+        $this->assertTrue($provider->is_provider_configured());
+    }
 }
diff --git a/ai/tests/behat/admin.feature b/ai/tests/behat/admin.feature
index acc657a3e7f..666ae989da8 100644
--- a/ai/tests/behat/admin.feature
+++ b/ai/tests/behat/admin.feature
@@ -32,6 +32,9 @@ Feature: An administrator can manage AI subsystem settings
     And I navigate to "AI > AI providers" in site administration
     When I toggle the "Enable OpenAI API Provider" admin switch "on"
     And I should see "OpenAI API Provider enabled."
+    And the following config values are set as admin:
+      | apikey | 123 | aiprovider_openai |
+      | orgid  | abc | aiprovider_openai |
     And I navigate to "AI > AI placements" in site administration
     And I click on the "Settings" link in the table row containing "HTML Text Editor Placement"
     Then I should not see "This action is unavailable."
@@ -52,6 +55,9 @@ Feature: An administrator can manage AI subsystem settings
     And I navigate to "AI > AI providers" in site administration
     When I toggle the "Enable OpenAI API Provider" admin switch "on"
     And I should see "OpenAI API Provider enabled."
+    And the following config values are set as admin:
+      | apikey | 123 | aiprovider_openai |
+      | orgid  | abc | aiprovider_openai |
     And I click on the "Settings" link in the table row containing "OpenAI API Provider"
     And I toggle the "Generate text" admin switch "off"
     And I navigate to "AI > AI placements" in site administration
diff --git a/ai/tests/manager_test.php b/ai/tests/manager_test.php
index 3b5de6d292a..d2e33ab9d68 100644
--- a/ai/tests/manager_test.php
+++ b/ai/tests/manager_test.php
@@ -74,6 +74,8 @@ final class manager_test extends \advanced_testcase {
     public function test_get_providers_for_actions(): void {
         $this->resetAfterTest();
         set_config('enabled', 1, 'aiprovider_openai');
+        set_config('apikey', '123', 'aiprovider_openai');
+        set_config('orgid', 'abc', 'aiprovider_openai');
 
         $manager = \core\di::get(manager::class);
         $actions = [
@@ -141,7 +143,11 @@ final class manager_test extends \advanced_testcase {
 
         // Enable the providers.
         set_config('enabled', 1, 'aiprovider_openai');
+        set_config('apikey', '123', 'aiprovider_openai');
+        set_config('orgid', 'abc', 'aiprovider_openai');
         set_config('enabled', 1, 'aiprovider_azureai');
+        set_config('apikey', '123', 'aiprovider_azureai');
+        set_config('endpoint', 'abc', 'aiprovider_azureai');
 
         $managermock = $this->getMockBuilder(manager::class)
             ->onlyMethods(['call_action_provider'])
@@ -413,6 +419,8 @@ final class manager_test extends \advanced_testcase {
         // Enable the plugin, actions will be enabled by default when the plugin is enabled.
         $manager = \core_plugin_manager::resolve_plugininfo_class('aiprovider');
         $manager::enable_plugin('openai', 1);
+        set_config('apikey', '123', 'aiprovider_openai');
+        set_config('orgid', 'abc', 'aiprovider_openai');
 
         // Should now be available.
         $result = manager::is_action_available($action);
diff --git a/lib/editor/tiny/plugins/aiplacement/tests/behat/image.feature b/lib/editor/tiny/plugins/aiplacement/tests/behat/image.feature
index e23c5f15b4a..a1ff074ba3d 100644
--- a/lib/editor/tiny/plugins/aiplacement/tests/behat/image.feature
+++ b/lib/editor/tiny/plugins/aiplacement/tests/behat/image.feature
@@ -29,6 +29,9 @@ Feature: Generate image using AI
       | aiplacement/editor:generate_text  | Prohibit   | user    | System       |           |
       | aiplacement/editor:generate_image | Prohibit   | custom2 | Course       | C1        |
     And I enable "openai" "aiprovider" plugin
+    And the following config values are set as admin:
+      | apikey | 123 | aiprovider_openai |
+      | orgid  | abc | aiprovider_openai |
     And I enable "editor" "aiplacement" plugin
 
   @javascript
diff --git a/lib/editor/tiny/plugins/aiplacement/tests/behat/text.feature b/lib/editor/tiny/plugins/aiplacement/tests/behat/text.feature
index e968667d4fd..3ab7ade0480 100644
--- a/lib/editor/tiny/plugins/aiplacement/tests/behat/text.feature
+++ b/lib/editor/tiny/plugins/aiplacement/tests/behat/text.feature
@@ -30,6 +30,9 @@ Feature: Generate text using AI
       | aiplacement/editor:generate_text  | Prohibit   | custom2 | Course       | C1        |
     And I log in as "admin"
     And I enable "openai" "aiprovider" plugin
+    And the following config values are set as admin:
+      | apikey | 123 | aiprovider_openai |
+      | orgid  | abc | aiprovider_openai |
     And I enable "editor" "aiplacement" plugin
 
   @javascript