Legacy ProvidersAzure OpenAI

Azure OpenAI

Vercel AI SDK provides a set of utilities to make it easy to use the Azure OpenAI client library. In this guide, we'll walk through how to use the utilities to create a chat bot.

Guide: Chat Bot

Create a Next.js app

Create a Next.js application and install ai and @azure/openai, the Vercel AI SDK and Azure OpenAI client respectively:

pnpm dlx create-next-app my-ai-app
cd my-ai-app
pnpm install ai @azure/openai

Add your Azure OpenAI API Key to .env

Create a .env file in your project root and add your Azure OpenAI API Key:


Create a Route Handler

Create a Next.js Route Handler that we'll use to generate a chat completion via Azure OpenAI that we'll then stream back to our Next.js.

For this example, we'll create a route handler at app/api/chat/route.ts that accepts a POST request with a messages array of strings:

import { OpenAIClient, AzureKeyCredential } from '@azure/openai';
import { OpenAIStream, StreamingTextResponse } from 'ai';
// Create an OpenAI API client
const client = new OpenAIClient(
new AzureKeyCredential(process.env.AZURE_OPENAI_API_KEY!),
export async function POST(req: Request) {
const { messages } = await req.json();
// Ask Azure OpenAI for a streaming chat completion given the prompt
const response = await client.streamChatCompletions(
// Convert the response into a friendly text-stream
const stream = OpenAIStream(response);
// Respond with the stream
return new StreamingTextResponse(stream);

Vercel AI SDK provides 2 utility helpers to make the above seamless: First, we pass the streaming response we receive from Azure OpenAI library to OpenAIStream. This method decodes/extracts the text tokens in the response and then re-encodes them properly for simple consumption. We can then pass that new stream directly to StreamingTextResponse. This is another utility class that extends the normal Node/Edge Runtime Response class with the default headers you probably want (hint: 'Content-Type': 'text/plain; charset=utf-8' is already set for you).

Wire up the UI

Create a Client component with a form that we'll use to gather the prompt from the user and then stream back the completion from. By default, the useChat hook will use the POST Route Handler we created above (it defaults to /api/chat). You can override this by passing a api prop to useChat({ api: '...'}).

'use client';
import { useChat } from 'ai/react';
export default function Chat() {
const { messages, input, handleInputChange, handleSubmit } = useChat();
return (
<div className="flex flex-col w-full max-w-md py-24 mx-auto stretch">
{messages.map(m => (
<div key={m.id} className="whitespace-pre-wrap">
{m.role === 'user' ? 'User: ' : 'AI: '}
<form onSubmit={handleSubmit}>
className="fixed bottom-0 w-full max-w-md p-2 mb-8 border border-gray-300 rounded shadow-xl"
placeholder="Say something..."

Guide: Save to Database After Completion

It’s common to want to save the result of a completion to a database after streaming it back to the user. The OpenAIStream adapter accepts a couple of optional callbacks that can be used to do this.

export async function POST(req: Request) {
// ...
// Convert the response into a friendly text-stream
const stream = OpenAIStream(response, {
onStart: async () => {
// This callback is called when the stream starts
// You can use this to save the prompt to your database
await savePromptToDatabase(prompt);
onToken: async (token: string) => {
// This callback is called for each token in the stream
// You can use this to debug the stream or save the tokens to your database
onCompletion: async (completion: string) => {
// This callback is called when the stream completes
// You can use this to save the final completion to your database
await saveCompletionToDatabase(completion);
// Respond with the stream
return new StreamingTextResponse(stream);