diff --git a/assets/javascripts/discourse/components/ai-suggestion-dropdown.gjs b/assets/javascripts/discourse/components/ai-suggestion-dropdown.gjs
index b92abd66..df6dd195 100644
--- a/assets/javascripts/discourse/components/ai-suggestion-dropdown.gjs
+++ b/assets/javascripts/discourse/components/ai-suggestion-dropdown.gjs
@@ -131,6 +131,7 @@ export default class AISuggestionDropdown extends Component {
       data: { text: this.composer.model.reply },
     })
       .then((data) => {
+        console.log(data);
         this.#assignGeneratedSuggestions(data, this.args.mode);
       })
       .catch(popupAjaxError)
@@ -198,6 +199,7 @@ export default class AISuggestionDropdown extends Component {
     }
 
     const suggestions = data.assistant.map((s) => s.name);
+    // console.log("suggest", suggestions);
 
     if (mode === this.SUGGESTION_TYPES.tag) {
       if (this.#tagSelectorHasValues()) {
diff --git a/assets/javascripts/discourse/components/suggestion-menus/ai-category-suggester.gjs b/assets/javascripts/discourse/components/suggestion-menus/ai-category-suggester.gjs
new file mode 100644
index 00000000..5b04097d
--- /dev/null
+++ b/assets/javascripts/discourse/components/suggestion-menus/ai-category-suggester.gjs
@@ -0,0 +1,142 @@
+import Component from "@glimmer/component";
+import { tracked } from "@glimmer/tracking";
+import { fn } from "@ember/helper";
+import { on } from "@ember/modifier";
+import { action } from "@ember/object";
+import { inject as service } from "@ember/service";
+import DButton from "discourse/components/d-button";
+import DropdownMenu from "discourse/components/dropdown-menu";
+import categoryBadge from "discourse/helpers/category-badge";
+import { ajax } from "discourse/lib/ajax";
+import { popupAjaxError } from "discourse/lib/ajax-error";
+import i18n from "discourse-common/helpers/i18n";
+import DMenu from "float-kit/components/d-menu";
+
+export default class AiCategorySuggester extends Component {
+  @service siteSettings;
+  @tracked loading = false;
+  @tracked suggestions = null;
+  @tracked untriggers = [];
+  @tracked triggerIcon = "discourse-sparkles";
+
+  get referenceText() {
+    if (this.args.composer?.reply) {
+      return this.args.composer.reply;
+    }
+
+    console.log(this.args);
+    ajax(`/raw/${this.args.topic.id}/1.json`).then((response) => {
+      console.log(response);
+    });
+
+    return "abcdefhg";
+  }
+
+  get showSuggestionButton() {
+    const MIN_CHARACTER_COUNT = 40;
+    const composerFields = document.querySelector(".composer-fields");
+    const showTrigger = this.referenceText.length > MIN_CHARACTER_COUNT;
+
+    if (composerFields) {
+      if (showTrigger) {
+        composerFields.classList.add("showing-ai-suggestions");
+      } else {
+        composerFields.classList.remove("showing-ai-suggestions");
+      }
+    }
+
+    return this.siteSettings.ai_embeddings_enabled && showTrigger;
+  }
+
+  @action
+  async loadSuggestions() {
+    if (this.suggestions && !this.dMenu.expanded) {
+      return this.suggestions;
+    }
+
+    this.loading = true;
+    this.triggerIcon = "spinner";
+
+    try {
+      const { assistant } = await ajax(
+        "/discourse-ai/ai-helper/suggest_category",
+        {
+          method: "POST",
+          data: { text: this.args.composer.reply },
+        }
+      );
+      this.suggestions = assistant;
+    } catch (error) {
+      popupAjaxError(error);
+    } finally {
+      this.loading = false;
+      this.triggerIcon = "sync-alt";
+    }
+
+    return this.suggestions;
+  }
+
+  @action
+  applySuggestion(suggestion) {
+    const composer = this.args.composer;
+    if (!composer) {
+      return;
+    }
+
+    composer.set("categoryId", suggestion.id);
+    this.dMenu.close();
+  }
+
+  @action
+  onRegisterApi(api) {
+    this.dMenu = api;
+  }
+
+  @action
+  onClose() {
+    this.triggerIcon = "discourse-sparkles";
+  }
+
+  <template>
+    {{#if this.showSuggestionButton}}
+      <DMenu
+        @title={{i18n "discourse_ai.ai_helper.suggest"}}
+        @icon={{this.triggerIcon}}
+        @identifier="ai-category-suggester"
+        @onClose={{this.onClose}}
+        @triggerClass="suggestion-button suggest-category-button {{if
+          this.loading
+          'is-loading'
+        }}"
+        @onRegisterApi={{this.onRegisterApi}}
+        @modalForMobile={{true}}
+        @untriggers={{this.untriggers}}
+        {{on "click" this.loadSuggestions}}
+      >
+        <:content>
+          {{#unless this.loading}}
+            <DropdownMenu as |dropdown|>
+              {{#each this.suggestions as |suggestion|}}
+                <dropdown.item>
+                  <DButton
+                    class="category-row"
+                    data-title={{suggestion.name}}
+                    data-value={{suggestion.id}}
+                    title={{suggestion.name}}
+                    @action={{fn this.applySuggestion suggestion}}
+                  >
+                    <div class="category-status">
+                      {{categoryBadge suggestion}}
+                      <span class="topic-count" aria-label="">x
+                        {{suggestion.topicCount}}</span>
+                    </div>
+                  </DButton>
+                </dropdown.item>
+              {{/each}}
+            </DropdownMenu>
+          {{/unless}}
+        </:content>
+      </DMenu>
+    {{/if}}
+  </template>
+}
diff --git a/assets/javascripts/discourse/connectors/after-composer-category-input/ai-category-suggestion.gjs b/assets/javascripts/discourse/connectors/after-composer-category-input/ai-category-suggestion.gjs
index f8f97c57..d7bef642 100644
--- a/assets/javascripts/discourse/connectors/after-composer-category-input/ai-category-suggestion.gjs
+++ b/assets/javascripts/discourse/connectors/after-composer-category-input/ai-category-suggestion.gjs
@@ -1,6 +1,5 @@
 import Component from "@glimmer/component";
-import { inject as service } from "@ember/service";
-import AISuggestionDropdown from "../../components/ai-suggestion-dropdown";
+import AiCategorySuggester from "../../components/suggestion-menus/ai-category-suggester";
 import { showComposerAiHelper } from "../../lib/show-ai-helper";
 
 export default class AiCategorySuggestion extends Component {
@@ -13,15 +12,7 @@ export default class AiCategorySuggestion extends Component {
     );
   }
 
-  @service siteSettings;
-
   <template>
-    {{#if this.siteSettings.ai_embeddings_enabled}}
-      <AISuggestionDropdown
-        @mode="suggest_category"
-        @composer={{@outletArgs.composer}}
-        class="suggest-category-button"
-      />
-    {{/if}}
+    <AiCategorySuggester @composer={{@outletArgs.composer}} />
   </template>
 }
diff --git a/assets/javascripts/discourse/connectors/after-composer-tag-input/ai-tag-suggestion.gjs b/assets/javascripts/discourse/connectors/after-composer-tag-input/ai-tag-suggestion.gjs
index d0748800..21ce47bf 100644
--- a/assets/javascripts/discourse/connectors/after-composer-tag-input/ai-tag-suggestion.gjs
+++ b/assets/javascripts/discourse/connectors/after-composer-tag-input/ai-tag-suggestion.gjs
@@ -1,6 +1,16 @@
 import Component from "@glimmer/component";
+import { tracked } from "@glimmer/tracking";
+import { fn } from "@ember/helper";
+import { on } from "@ember/modifier";
+import { action } from "@ember/object";
 import { inject as service } from "@ember/service";
-import AISuggestionDropdown from "../../components/ai-suggestion-dropdown";
+import DButton from "discourse/components/d-button";
+import DropdownMenu from "discourse/components/dropdown-menu";
+import discourseTag from "discourse/helpers/discourse-tag";
+import { ajax } from "discourse/lib/ajax";
+import { popupAjaxError } from "discourse/lib/ajax-error";
+import i18n from "discourse-common/helpers/i18n";
+import DMenu from "float-kit/components/d-menu";
 import { showComposerAiHelper } from "../../lib/show-ai-helper";
 
 export default class AiTagSuggestion extends Component {
@@ -14,14 +24,188 @@ export default class AiTagSuggestion extends Component {
   }
 
   @service siteSettings;
+  @service toasts;
+  @tracked loading = false;
+  @tracked suggestions = null;
+  @tracked untriggers = [];
+  @tracked triggerIcon = "discourse-sparkles";
+
+  get showSuggestionButton() {
+    const MIN_CHARACTER_COUNT = 40;
+    const composerFields = document.querySelector(".composer-fields");
+    const showTrigger =
+      this.args.outletArgs.composer.reply?.length > MIN_CHARACTER_COUNT;
+
+    if (composerFields) {
+      if (showTrigger) {
+        composerFields.classList.add("showing-ai-suggestions");
+      } else {
+        composerFields.classList.remove("showing-ai-suggestions");
+      }
+    }
+
+    return this.siteSettings.ai_embeddings_enabled && showTrigger;
+  }
+
+  get showDropdown() {
+    if (this.suggestions?.length <= 0) {
+      this.dMenu.close();
+    }
+    return !this.loading && this.suggestions?.length > 0;
+  }
+
+  @action
+  async loadSuggestions() {
+    if (
+      this.suggestions &&
+      this.suggestions?.length > 0 &&
+      !this.dMenu.expanded
+    ) {
+      return this.suggestions;
+    }
+
+    this.loading = true;
+    this.triggerIcon = "spinner";
+
+    try {
+      const { assistant } = await ajax("/discourse-ai/ai-helper/suggest_tags", {
+        method: "POST",
+        data: { text: this.args.outletArgs.composer.reply },
+      });
+      this.suggestions = assistant;
+
+      if (this.#tagSelectorHasValues()) {
+        this.suggestions = this.suggestions.filter(
+          (s) => !this.args.outletArgs.composer.tags.includes(s.name)
+        );
+      }
+
+      if (this.suggestions?.length <= 0) {
+        this.toasts.error({
+          class: "ai-suggestion-error",
+          duration: 3000,
+          data: {
+            message: i18n(
+              "discourse_ai.ai_helper.suggest_errors.no_suggestions"
+            ),
+          },
+        });
+        return;
+      }
+    } catch (error) {
+      popupAjaxError(error);
+    } finally {
+      this.loading = false;
+      this.triggerIcon = "sync-alt";
+    }
+
+    return this.suggestions;
+  }
+
+  #tagSelectorHasValues() {
+    return (
+      this.args.outletArgs.composer?.tags &&
+      this.args.outletArgs.composer?.tags.length > 0
+    );
+  }
+
+  #removedAppliedTag(suggestion) {
+    return (this.suggestions = this.suggestions.filter(
+      (s) => s.id !== suggestion.id
+    ));
+  }
+
+  @action
+  applySuggestion(suggestion) {
+    const maxTags = this.siteSettings.max_tags_per_topic;
+    const composer = this.args.outletArgs.composer;
+    if (!composer) {
+      return;
+    }
+
+    if (!composer.tags) {
+      composer.set("tags", [suggestion.name]);
+      this.#removedAppliedTag(suggestion);
+      return;
+    }
+
+    const tags = composer.tags;
+
+    if (tags?.length >= maxTags) {
+      return this.toasts.error({
+        class: "ai-suggestion-error",
+        duration: 3000,
+        data: {
+          message: i18n("discourse_ai.ai_helper.suggest_errors.too_many_tags", {
+            count: maxTags,
+          }),
+        },
+      });
+    }
+
+    tags.push(suggestion.name);
+    composer.set("tags", [...tags]);
+    suggestion.disabled = true;
+    this.#removedAppliedTag(suggestion);
+  }
+
+  @action
+  onRegisterApi(api) {
+    this.dMenu = api;
+  }
+
+  @action
+  onClose() {
+    if (this.suggestions?.length > 0) {
+      // If all suggestions have been used,
+      // re-triggering when no suggestions present
+      // will cause computation issues with
+      // setting the icon, so we prevent it
+      this.triggerIcon = "discourse-sparkles";
+    }
+  }
 
   <template>
-    {{#if this.siteSettings.ai_embeddings_enabled}}
-      <AISuggestionDropdown
-        @mode="suggest_tags"
-        @composer={{@outletArgs.composer}}
-        class="suggest-tags-button"
-      />
+    {{#if this.showSuggestionButton}}
+      <DMenu
+        @title={{i18n "discourse_ai.ai_helper.suggest"}}
+        @icon={{this.triggerIcon}}
+        @identifier="ai-tag-suggester"
+        @onClose={{this.onClose}}
+        @triggerClass="suggestion-button suggest-tags-button {{if
+          this.loading
+          'is-loading'
+        }}"
+        @onRegisterApi={{this.onRegisterApi}}
+        @modalForMobile={{true}}
+        @untriggers={{this.untriggers}}
+        {{on "click" this.loadSuggestions}}
+      >
+        <:content>
+          {{#if this.showDropdown}}
+            <DropdownMenu as |dropdown|>
+              {{#each this.suggestions as |suggestion|}}
+                <dropdown.item>
+                  <DButton
+                    class="tag-row"
+                    data-title={{suggestion.name}}
+                    data-value={{suggestion.id}}
+                    title={{suggestion.name}}
+                    @disabled={{this.isDisabled suggestion}}
+                    @action={{fn this.applySuggestion suggestion}}
+                  >
+                    {{discourseTag
+                      suggestion.name
+                      count=suggestion.count
+                      noHref=true
+                    }}
+                  </DButton>
+                </dropdown.item>
+              {{/each}}
+            </DropdownMenu>
+          {{/if}}
+        </:content>
+      </DMenu>
     {{/if}}
   </template>
 }
diff --git a/assets/javascripts/discourse/connectors/edit-topic-category__after/ai-category-suggestion.gjs b/assets/javascripts/discourse/connectors/edit-topic-category__after/ai-category-suggestion.gjs
new file mode 100644
index 00000000..379345b0
--- /dev/null
+++ b/assets/javascripts/discourse/connectors/edit-topic-category__after/ai-category-suggestion.gjs
@@ -0,0 +1,23 @@
+import Component from "@glimmer/component";
+import AiCategorySuggester from "../../components/suggestion-menus/ai-category-suggester";
+import { showComposerAiHelper } from "../../lib/show-ai-helper";
+
+export default class AiCategorySuggestion extends Component {
+  static shouldRender(outletArgs, helper) {
+    return showComposerAiHelper(
+      outletArgs?.composer,
+      helper.siteSettings,
+      helper.currentUser,
+      "suggestions"
+    );
+  }
+
+  <template>
+    {{log @outletArgs}}
+    <AiCategorySuggester
+      @composer={{@outletArgs.topic.category}}
+      @topic={{@outletArgs.topic}}
+      @buffered={{@outletArgs.buffered}}
+    />
+  </template>
+}
diff --git a/assets/stylesheets/modules/ai-helper/common/ai-helper.scss b/assets/stylesheets/modules/ai-helper/common/ai-helper.scss
index 8c8d1265..f01d5488 100644
--- a/assets/stylesheets/modules/ai-helper/common/ai-helper.scss
+++ b/assets/stylesheets/modules/ai-helper/common/ai-helper.scss
@@ -228,25 +228,32 @@
   border-bottom-left-radius: 0;
 }
 
-.ai-suggestions-menu {
-  list-style: none;
-  margin-left: 0;
-  position: absolute;
-  right: 0;
-  top: 1.5rem;
-  max-width: 25rem;
-  width: unset;
-  z-index: 999;
+.ai-category-suggester-content,
+.ai-tag-suggester-content {
+  z-index: z("composer", "dropdown");
+}
 
-  &__errors {
-    background: var(--danger);
-    padding: 0.25rem 1em;
-    color: var(--secondary);
+.ai-category-suggester-content {
+  .category-row {
+    padding: 0.25em 0.5em;
+    color: var(--primary-high);
+
+    &:hover {
+      background: var(--d-hover);
+    }
+  }
+
+  .topic-count {
+    font-size: var(--font-down-2);
   }
 }
 
-.category-input.showing-ai-suggestion-menu {
-  position: relative;
+.ai-tag-suggester-content {
+  .tag-row {
+    .discourse-tag-count {
+      margin-left: 5px;
+    }
+  }
 }
 
 // Prevent suggestion button from wrapping
diff --git a/config/locales/client.en.yml b/config/locales/client.en.yml
index 22c5f38f..613e4b04 100644
--- a/config/locales/client.en.yml
+++ b/config/locales/client.en.yml
@@ -340,6 +340,11 @@ en:
         description: "Choose one of the options below, and the AI will suggest you a new version of the text."
         selection_hint: "Hint: You can also select a portion of the text before opening the helper to rewrite only that."
         suggest: "Suggest with AI"
+        suggest_errors:
+          too_many_tags:
+            one: "You can only have up to %{count} tag"
+            other: "You can only have up to %{count} tags"
+          no_suggestions: "No suggestions available"
         missing_content: "Please enter some content to generate suggestions."
         context_menu:
           trigger: "Ask AI"
diff --git a/lib/ai_helper/semantic_categorizer.rb b/lib/ai_helper/semantic_categorizer.rb
index b759c6c3..7b6f953f 100644
--- a/lib/ai_helper/semantic_categorizer.rb
+++ b/lib/ai_helper/semantic_categorizer.rb
@@ -19,15 +19,30 @@ module DiscourseAi
           .where(id: candidate_ids)
           .where("categories.id IN (?)", Category.topic_create_allowed(@user.guardian).pluck(:id))
           .order("array_position(ARRAY#{candidate_ids}, topics.id)")
-          .pluck("categories.slug")
+          .pluck(
+            "categories.id",
+            "categories.name",
+            "categories.slug",
+            "categories.color",
+            "categories.topic_count",
+          )
           .map
-          .with_index { |category, index| { name: category, score: candidates[index].last } }
+          .with_index do |(id, name, slug, color, topic_count), index|
+            {
+              id: id,
+              name: name,
+              slug: slug,
+              color: color,
+              topicCount: topic_count,
+              score: candidates[index].last,
+            }
+          end
           .map do |c|
             c[:score] = 1 / (c[:score] + 1) # inverse of the distance
             c
           end
           .group_by { |c| c[:name] }
-          .map { |name, scores| { name: name, score: scores.sum { |s| s[:score] } } }
+          .map { |name, scores| scores.first.merge(score: scores.sum { |s| s[:score] }) }
           .sort_by { |c| -c[:score] }
           .take(5)
       end
@@ -39,24 +54,35 @@ module DiscourseAi
         candidates = nearest_neighbors(limit: 100)
         candidate_ids = candidates.map(&:first)
 
+        count_column = Tag.topic_count_column(@user.guardian) # Determine the count column
+
         ::Topic
           .joins(:topic_tags, :tags)
           .where(id: candidate_ids)
           .where("tags.id IN (?)", DiscourseTagging.visible_tags(@user.guardian).pluck(:id))
-          .group("topics.id")
+          .group("topics.id, tags.id, tags.name") # Group by topics.id and tags.id
           .order("array_position(ARRAY#{candidate_ids}, topics.id)")
-          .pluck("array_agg(tags.name)")
-          .map(&:uniq)
+          .pluck(
+            "tags.id",
+            "tags.name",
+            "tags.#{count_column}",
+            "MIN(array_position(ARRAY#{candidate_ids}, topics.id))", # Get minimum index for ordering
+          )
+          .uniq # Ensure unique tags per topic
           .map
-          .with_index { |tag_list, index| { tags: tag_list, score: candidates[index].last } }
-          .flat_map { |c| c[:tags].map { |t| { name: t, score: c[:score] } } }
-          .map do |c|
-            c[:score] = 1 / (c[:score] + 1) # inverse of the distance
-            c
+          .with_index do |(id, name, count, index), idx|
+            {
+              id: id,
+              name: name,
+              count: count,
+              score: 1 / (candidates[idx].last + 1), # Inverse of the distance for score
+            }
           end
-          .group_by { |c| c[:name] }
-          .map { |name, scores| { name: name, score: scores.sum { |s| s[:score] } } }
-          .sort_by { |c| -c[:score] }
+          .group_by { |tag| tag[:name] }
+          .map do |name, tags|
+            tags.first.merge(score: tags.sum { |t| t[:score] })
+          end # Aggregate scores per tag
+          .sort_by { |tag| -tag[:score] }
           .take(5)
       end