diff --git a/apps/web/components/ChatPanel/ChatBubble/ChatBubble.tsx b/apps/web/components/ChatPanel/ChatBubble/ChatBubble.tsx
index 28bc4a6c60b6..6c0dcbec5553 100644
--- a/apps/web/components/ChatPanel/ChatBubble/ChatBubble.tsx
+++ b/apps/web/components/ChatPanel/ChatBubble/ChatBubble.tsx
@@ -1,8 +1,12 @@
-import React from 'react'
+import React, { useRef, useState } from 'react'
 import cn from 'classnames'
 
 import { Box, FocusableBox, LoadingDots, Text } from '@island.is/island-ui/core'
 
+import {
+  EmbedDisclaimer,
+  type EmbedDisclaimerProps,
+} from './EmbedDisclaimer/EmbedDisclaimer'
 import * as styles from './ChatBubble.css'
 
 interface ChatBubbleProps {
@@ -11,6 +15,7 @@ interface ChatBubbleProps {
   isVisible?: boolean
   onClick?: () => void
   loading?: boolean
+  embedDisclaimerProps?: Pick<EmbedDisclaimerProps, 'localStorageKey' | 'texts'>
 }
 
 export const ChatBubble = ({
@@ -19,34 +24,74 @@ export const ChatBubble = ({
   onClick,
   pushUp = false,
   loading = false,
+  embedDisclaimerProps,
 }: ChatBubbleProps) => {
+  const [isConfirmModalOpen, setIsConfirmModalOpen] = useState(false)
+  const hasButtonBeenClicked = useRef(false)
+
   return (
-    <div className={cn(styles.root, { [styles.hidden]: !isVisible })}>
-      <FocusableBox
-        component="button"
-        data-testid="chatbot"
-        tabIndex={0}
-        className={cn(styles.message, pushUp && styles.messagePushUp)}
-        onClick={onClick}
-      >
-        <Box position="relative">
-          <Box>
-            <Box style={{ visibility: loading ? 'hidden' : 'visible' }}>
-              <Text variant="h5" color="white">
-                {text}
-              </Text>
-            </Box>
-            {loading && (
-              <Box className={styles.loadingDots}>
-                <LoadingDots color="white" />
+    <>
+      {isConfirmModalOpen && embedDisclaimerProps && (
+        <EmbedDisclaimer
+          localStorageKey={embedDisclaimerProps.localStorageKey}
+          onAnswer={(acceptsTerms) => {
+            setIsConfirmModalOpen(false)
+            if (acceptsTerms) {
+              hasButtonBeenClicked.current = true
+              onClick?.()
+            }
+          }}
+          texts={embedDisclaimerProps.texts}
+        />
+      )}
+      <div className={cn(styles.root, { [styles.hidden]: !isVisible })}>
+        <FocusableBox
+          component="button"
+          data-testid="chatbot"
+          tabIndex={0}
+          className={cn(styles.message, pushUp && styles.messagePushUp)}
+          onClick={() => {
+            if (!embedDisclaimerProps || hasButtonBeenClicked.current) {
+              onClick?.()
+              return
+            }
+
+            let itemValue: string | null = null
+            try {
+              itemValue = localStorage.getItem(
+                embedDisclaimerProps.localStorageKey,
+              )
+            } catch (error) {
+              console.warn('Failed to get preference:', error)
+            }
+
+            if (itemValue === 'true') {
+              onClick?.()
+              return
+            }
+
+            setIsConfirmModalOpen(true)
+          }}
+        >
+          <Box position="relative">
+            <Box>
+              <Box style={{ visibility: loading ? 'hidden' : 'visible' }}>
+                <Text variant="h5" color="white">
+                  {text}
+                </Text>
               </Box>
-            )}
+              {loading && (
+                <Box className={styles.loadingDots}>
+                  <LoadingDots color="white" />
+                </Box>
+              )}
+            </Box>
           </Box>
-        </Box>
-        <div className={styles.messageArrow} />
-        <div className={styles.messageArrowBorder} />
-      </FocusableBox>
-    </div>
+          <div className={styles.messageArrow} />
+          <div className={styles.messageArrowBorder} />
+        </FocusableBox>
+      </div>
+    </>
   )
 }
 
diff --git a/apps/web/components/ChatPanel/ChatBubble/EmbedDisclaimer/EmbedDisclaimer.css.ts b/apps/web/components/ChatPanel/ChatBubble/EmbedDisclaimer/EmbedDisclaimer.css.ts
new file mode 100644
index 000000000000..246cccc3ddd8
--- /dev/null
+++ b/apps/web/components/ChatPanel/ChatBubble/EmbedDisclaimer/EmbedDisclaimer.css.ts
@@ -0,0 +1,23 @@
+import { style } from '@vanilla-extract/css'
+
+import { theme, themeUtils } from '@island.is/island-ui/theme'
+
+export const link = style({
+  textDecoration: 'underline',
+})
+
+export const modal = style({
+  width: 357,
+  position: 'fixed',
+  zIndex: 10000,
+  bottom: theme.spacing[2],
+  right: theme.spacing[1],
+  ...themeUtils.responsiveStyle({
+    md: {
+      bottom: theme.spacing[3],
+      right: theme.spacing[3],
+    },
+  }),
+  transition: 'opacity 0.3s ease',
+  boxShadow: '0 4px 30px rgba(0, 0, 0, 0.16)',
+})
diff --git a/apps/web/components/ChatPanel/ChatBubble/EmbedDisclaimer/EmbedDisclaimer.tsx b/apps/web/components/ChatPanel/ChatBubble/EmbedDisclaimer/EmbedDisclaimer.tsx
new file mode 100644
index 000000000000..b0ed2dc627c2
--- /dev/null
+++ b/apps/web/components/ChatPanel/ChatBubble/EmbedDisclaimer/EmbedDisclaimer.tsx
@@ -0,0 +1,134 @@
+import React, { type ReactNode } from 'react'
+import { Controller, useForm } from 'react-hook-form'
+
+import {
+  Box,
+  Button,
+  Checkbox,
+  FocusableBox,
+  Icon,
+  LinkContext,
+  Stack,
+} from '@island.is/island-ui/core'
+
+import * as styles from './EmbedDisclaimer.css'
+
+export interface EmbedDisclaimerProps {
+  texts: {
+    cancel: string
+    accept: string
+    message: ReactNode
+    remember: string
+  }
+  onAnswer: (acceptsTerms: boolean) => void
+  localStorageKey: string
+}
+
+export const EmbedDisclaimer = ({
+  texts,
+  onAnswer,
+  localStorageKey,
+}: EmbedDisclaimerProps) => {
+  const methods = useForm()
+
+  const { control } = methods
+
+  return (
+    <Box
+      className={styles.modal}
+      background="blue100"
+      borderRadius="large"
+      padding="gutter"
+    >
+      <Stack space={1}>
+        <Box display="flex" justifyContent="spaceBetween">
+          <Box />
+          <FocusableBox
+            tabIndex={0}
+            aria-label={texts.cancel}
+            onKeyDown={(ev) => {
+              if (ev.key === 'Enter' || ev.key === ' ') {
+                onAnswer(false)
+                ev.preventDefault()
+              }
+            }}
+            onClick={() => {
+              onAnswer(false)
+            }}
+          >
+            <Icon icon="close" size="medium" />
+          </FocusableBox>
+        </Box>
+        <Box padding="p1">
+          <LinkContext.Provider
+            value={{
+              linkRenderer: (href, children) => (
+                <a
+                  className={styles.link}
+                  href={href}
+                  rel="noopener noreferrer"
+                  target="_blank"
+                >
+                  {children}
+                </a>
+              ),
+            }}
+          >
+            <Stack space={3}>
+              <Stack space={2} align="center">
+                <Box>{texts.message}</Box>
+                <Controller
+                  name={localStorageKey}
+                  defaultValue={false}
+                  control={control}
+                  rules={{ required: false }}
+                  render={({ field: { onChange, value } }) => (
+                    <Checkbox
+                      label={texts.remember}
+                      labelVariant="small"
+                      checked={value}
+                      onChange={(e) => {
+                        onChange(e.target.checked)
+                        try {
+                          localStorage.setItem(
+                            localStorageKey,
+                            e.target.checked ? 'true' : 'false',
+                          )
+                        } catch (error) {
+                          console.warn('Failed to save preference:', error)
+                        }
+                      }}
+                    />
+                  )}
+                />
+              </Stack>
+              <Stack space={2} align="center">
+                <Button
+                  fluid={true}
+                  colorScheme="default"
+                  size="small"
+                  onClick={() => {
+                    onAnswer(true)
+                  }}
+                >
+                  {texts.accept}
+                </Button>
+                <Button
+                  fluid={true}
+                  variant="ghost"
+                  colorScheme="default"
+                  size="small"
+                  onClick={() => {
+                    onAnswer(false)
+                  }}
+                >
+                  {texts.cancel}
+                </Button>
+              </Stack>
+            </Stack>
+          </LinkContext.Provider>
+        </Box>
+      </Stack>
+    </Box>
+  )
+}
diff --git a/apps/web/components/ChatPanel/WatsonChatPanel/WatsonChatPanel.tsx b/apps/web/components/ChatPanel/WatsonChatPanel/WatsonChatPanel.tsx
index 568cd54432f3..10d2c98ee4ff 100644
--- a/apps/web/components/ChatPanel/WatsonChatPanel/WatsonChatPanel.tsx
+++ b/apps/web/components/ChatPanel/WatsonChatPanel/WatsonChatPanel.tsx
@@ -283,6 +283,10 @@ export const WatsonChatPanel = (props: WatsonChatPanelProps) => {
   const watsonInstance = useRef<WatsonInstance | null>(null)
   const [hasButtonBeenClicked, setHasButtonBeenClicked] = useState(false)
 
+  const replaceDirectorateOfImmigrationWebChatWithAI = Boolean(
+    namespace?.replaceDirectorateOfImmigrationWebChatWithAI,
+  )
+
   useEffect(() => {
     if (Object.keys(namespace).length === 0) {
       return () => {
@@ -294,10 +298,6 @@ export const WatsonChatPanel = (props: WatsonChatPanelProps) => {
     const namespaceValue = namespace?.[namespaceKey] ?? {}
     const { cssVariables, ...languagePack } = namespaceValue
 
-    const replaceDirectorateOfImmigrationWebChatWithAI = Boolean(
-      namespace?.replaceDirectorateOfImmigrationWebChatWithAI,
-    )
-
     const propsCopy = { ...props }
 
     if (
@@ -415,6 +415,8 @@ export const WatsonChatPanel = (props: WatsonChatPanelProps) => {
 
   if (showLauncher) return null
 
+  const chatTermsUrl = n('chatTermsUrl', '')
+
   return (
     <Hidden print>
       {shouldDisplayFeedbackPanel && (
@@ -457,6 +459,58 @@ export const WatsonChatPanel = (props: WatsonChatPanelProps) => {
           }}
           pushUp={pushUp}
           loading={loading}
+          embedDisclaimerProps={
+            replaceDirectorateOfImmigrationWebChatWithAI &&
+            props.integrationID === '9e320784-ad44-4da9-9eb3-f305057a196a'
+              ? {
+                  localStorageKey: 'watsonAssistantChatAllowed',
+                  texts: {
+                    message:
+                      activeLocale === 'is' ? (
+                        <Text variant="small">
+                          Þetta netspjall er hýst af þriðja aðila. Með því að
+                          halda áfram samþykkir þú{' '}
+                          {!chatTermsUrl ? (
+                            'skilmála'
+                          ) : (
+                            <a href={chatTermsUrl ?? ''}>skilmála</a>
+                          )}{' '}
+                          þeirra.
+                        </Text>
+                      ) : (
+                        <Text variant="small">
+                          This AI chatbot is hosted by a third party and by
+                          continuing, you are agreeing to their{' '}
+                          {!chatTermsUrl ? (
+                            'terms and conditions'
+                          ) : (
+                            <a href={chatTermsUrl ?? ''}>
+                              terms and conditions
+                            </a>
+                          )}
+                          . The chatbots purpose is to assist you in your search
+                          for information, it's still learning so suggestions
+                          must be taken with caution.
+                        </Text>
+                      ),
+                    remember: n(
+                      'rememberThisSetting',
+                      activeLocale === 'is'
+                        ? 'Muna þessa stillingu'
+                        : 'Remember this setting',
+                    ),
+                    accept: n(
+                      'accept',
+                      activeLocale === 'is' ? 'Halda áfram' : 'I agree',
+                    ),
+                    cancel: n(
+                      'cancel',
+                      activeLocale === 'is' ? 'Hætta við' : 'I disagree',
+                    ),
+                  },
+                }
+              : undefined
+          }
         />
       )}
       <ToastContainer />