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Takeaways

By the end of this module, you will be able to:
  • Create a streaming chat interface using the useChat hook
  • Implement API routes for handling chat requests
  • Configure system prompts for RAG behavior
  • Switch to alternative AI providers with free credits
  • Test the complete chat flow end-to-end

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Module structure

4.1 Chat Interface

Create streaming chat interface with useChat hook.

4.2 API Routes & System Prompts

Set up API routes and configure system prompts for RAG behavior.

4.3 Alternative AI Providers

Switch to providers with free credits to avoid quota limits.

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Prerequisites

Before starting this module, ensure you have:
  • AI SDK installed and configured (from previous modules)
  • OpenAI API key configured
  • Understanding of Next.js App Router
  • Basic familiarity with React hooks and async/await

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What you’ll build

Chat Interface

A streaming chat interface that will serve as the foundation for your RAG application.

API Routes

Route handlers to process chat requests and stream responses.

System Prompts

Configuration to control AI behavior and prepare for RAG functionality.

Streaming Responses

Real-time streaming of AI responses for better user experience.

Provider Flexibility

Ability to switch between different AI providers based on cost and performance needs.