diff --git a/cli/azd/pkg/ai/python_bridge.go b/cli/azd/pkg/ai/python_bridge.go
index 02a858082cb..2e8da158b4b 100644
--- a/cli/azd/pkg/ai/python_bridge.go
+++ b/cli/azd/pkg/ai/python_bridge.go
@@ -7,7 +7,7 @@ import (
 	"os"
 	"path/filepath"
 
-	"github.com/azure/azure-dev/cli/azd/pkg/environment"
+	"github.com/azure/azure-dev/cli/azd/pkg/config"
 	"github.com/azure/azure-dev/cli/azd/pkg/environment/azdcontext"
 	"github.com/azure/azure-dev/cli/azd/pkg/exec"
 	"github.com/azure/azure-dev/cli/azd/pkg/osutil"
@@ -36,7 +36,6 @@ type PythonBridge interface {
 // pythonBridge is a bridge to execute python components from the embedded AI resources project
 type pythonBridge struct {
 	azdCtx      *azdcontext.AzdContext
-	env         *environment.Environment
 	pythonCli   *python.PythonCli
 	workingDir  string
 	initialized bool
@@ -45,12 +44,10 @@ type pythonBridge struct {
 // NewPythonBridge creates a new PythonBridge instance
 func NewPythonBridge(
 	azdCtx *azdcontext.AzdContext,
-	env *environment.Environment,
 	pythonCli *python.PythonCli,
 ) PythonBridge {
 	return &pythonBridge{
 		azdCtx:    azdCtx,
-		env:       env,
 		pythonCli: pythonCli,
 	}
 }
@@ -84,8 +81,12 @@ func (b *pythonBridge) Run(ctx context.Context, scriptName ScriptPath, args ...s
 
 // initPython initializes the Python environment
 func (b *pythonBridge) initPython(ctx context.Context) error {
-	envDir := b.azdCtx.EnvironmentRoot(b.env.Name())
-	targetDir := filepath.Join(envDir, "ai")
+	configDir, err := config.GetUserConfigDir()
+	if err != nil {
+		return err
+	}
+
+	targetDir := filepath.Join(configDir, "bin", "ai")
 	if _, err := os.Stat(targetDir); os.IsNotExist(err) {
 		if err := os.MkdirAll(targetDir, osutil.PermissionDirectory); err != nil {
 			return err
diff --git a/cli/azd/pkg/ai/python_bridge_test.go b/cli/azd/pkg/ai/python_bridge_test.go
index 517d1357bb9..fe19193cbbe 100644
--- a/cli/azd/pkg/ai/python_bridge_test.go
+++ b/cli/azd/pkg/ai/python_bridge_test.go
@@ -2,11 +2,12 @@ package ai
 
 import (
 	"context"
+	"os"
 	"path/filepath"
 	"strings"
 	"testing"
 
-	"github.com/azure/azure-dev/cli/azd/pkg/environment"
+	"github.com/azure/azure-dev/cli/azd/pkg/config"
 	"github.com/azure/azure-dev/cli/azd/pkg/environment/azdcontext"
 	"github.com/azure/azure-dev/cli/azd/pkg/exec"
 	"github.com/azure/azure-dev/cli/azd/pkg/tools/python"
@@ -15,10 +16,13 @@ import (
 )
 
 func Test_PythonBridge_Init(t *testing.T) {
+	tempDir := t.TempDir()
 	mockContext := mocks.NewMockContext(context.Background())
-	env := environment.New("test")
 	pythonCli := python.NewPythonCli(mockContext.CommandRunner)
-	azdCtx := azdcontext.NewAzdContextWithDirectory(t.TempDir())
+	azdCtx := azdcontext.NewAzdContextWithDirectory(tempDir)
+
+	azdConfigDir := filepath.Join(tempDir, ".azd")
+	os.Setenv("AZD_CONFIG_DIR", azdConfigDir)
 
 	createdVirtualEnv := false
 	installedDependencies := false
@@ -37,10 +41,13 @@ func Test_PythonBridge_Init(t *testing.T) {
 		return exec.NewRunResult(0, "", ""), nil
 	})
 
-	aiDir := filepath.Join(azdCtx.EnvironmentRoot(env.Name()), "ai")
+	userConfigDir, err := config.GetUserConfigDir()
+	require.NoError(t, err)
+
+	aiDir := filepath.Join(userConfigDir, "bin", "ai")
 
-	bridge := NewPythonBridge(azdCtx, env, pythonCli)
-	err := bridge.Initialize(*mockContext.Context)
+	bridge := NewPythonBridge(azdCtx, pythonCli)
+	err = bridge.Initialize(*mockContext.Context)
 	require.NoError(t, err)
 	require.DirExists(t, aiDir)
 	require.True(t, createdVirtualEnv)
@@ -49,7 +56,6 @@ func Test_PythonBridge_Init(t *testing.T) {
 
 func Test_PythonBridge_Run(t *testing.T) {
 	mockContext := mocks.NewMockContext(context.Background())
-	env := environment.New("test")
 	pythonCli := python.NewPythonCli(mockContext.CommandRunner)
 	azdCtx := azdcontext.NewAzdContextWithDirectory(t.TempDir())
 
@@ -61,7 +67,7 @@ func Test_PythonBridge_Run(t *testing.T) {
 		return exec.NewRunResult(0, "result", ""), nil
 	})
 
-	bridge := NewPythonBridge(azdCtx, env, pythonCli)
+	bridge := NewPythonBridge(azdCtx, pythonCli)
 	result, err := bridge.Run(*mockContext.Context, "script.py", "arg1", "arg2")
 	require.NoError(t, err)
 	require.NotNil(t, result)