diff --git a/apps/web/src/main.tsx b/apps/web/src/main.tsx
index 44c80c0..c791c6d 100644
--- a/apps/web/src/main.tsx
+++ b/apps/web/src/main.tsx
@@ -1,7 +1,7 @@
 import React, { useEffect, useMemo, useRef, useState } from "react";
 import { createRoot } from "react-dom/client";
 import { BrowserRouter, Link, Navigate, NavLink, Route, Routes, useNavigate, useParams } from "react-router-dom";
-import ReactMarkdown from "react-markdown";
+import ReactMarkdown, { type Components } from "react-markdown";
 import remarkGfm from "remark-gfm";
 import { AlertCircle, ArrowDownRight, Bell, Boxes, Brain, CalendarClock, CheckCircle2, ChevronDown, Clipboard, Code2, Cpu, Database, Download, ExternalLink, Eye, FileText, FolderOpen, GitCompare, Globe2, Hash, History, Home, Image, KeyRound, LayoutGrid, ListTree, LoaderCircle, Maximize2, MessageSquare, Palette, Play, Plus, Search, Server, Settings, Share2, ShieldCheck, Sparkles, UserCheck, X, Zap } from "lucide-react";
 import Auth1 from "./components/blocks/auth-1.js";
@@ -4763,6 +4763,22 @@ function MarkdownLink(props: MarkdownAnchorProps) {
   );
 }
 
+// Render model-authored answer text as markdown — bold, nested bullet lists,
+// inline code, tables, links — instead of flattening it into one run-on
+// paragraph with literal `**`/`-` characters. `inline` unwraps the top-level
+// <p> so short single-line items (e.g. key points) sit directly inside their
+// <li>. Some answers arrive with escaped "\n", so normalise those first.
+const MARKDOWN_INLINE_COMPONENTS: Components = { a: MarkdownLink, p: ({ children }) => <>{children}</> };
+const MARKDOWN_BLOCK_COMPONENTS: Components = { a: MarkdownLink };
+function MarkdownText({ children, inline = false }: { children: string; inline?: boolean }) {
+  const normalized = children.replace(/\\r\\n|\\r|\\n/g, "\n");
+  return (
+    <ReactMarkdown remarkPlugins={[remarkGfm]} components={inline ? MARKDOWN_INLINE_COMPONENTS : MARKDOWN_BLOCK_COMPONENTS}>
+      {normalized}
+    </ReactMarkdown>
+  );
+}
+
 type SdkCredentialImportFormProps = {
   authenticated: boolean;
   authBusy: boolean;
@@ -5642,7 +5658,9 @@ function AiQueryPanel({
 }
 
 function AiResultData({ data }: { data: Record<string, unknown> }) {
-  const entries = Object.entries(data ?? {});
+  // Drop empty sections (e.g. no key points) entirely rather than rendering a
+  // card with a lonely "No items found." placeholder.
+  const entries = Object.entries(data ?? {}).filter(([, value]) => !isEmptyAiValue(value));
   if (!entries.length) return <div className="subEmpty aiResultEmpty">No structured data returned.</div>;
 
   return (
@@ -5660,14 +5678,15 @@ function AiResultData({ data }: { data: Record<string, unknown> }) {
 function AiResultValue({ value }: { value: unknown }) {
   if (Array.isArray(value)) {
     const items = value.map((item) => stringifyAiValue(item)).filter(Boolean);
-    return items.length ? (
-      <ul>
+    if (!items.length) return null;
+    return (
+      <ul className="aiAnswerList">
         {items.map((item, index) => (
-          <li key={`${item}-${index}`}>{item}</li>
+          <li key={`${item}-${index}`}>
+            <MarkdownText inline>{item}</MarkdownText>
+          </li>
         ))}
       </ul>
-    ) : (
-      <p className="mutedText">No items found.</p>
     );
   }
 
@@ -5676,12 +5695,10 @@ function AiResultValue({ value }: { value: unknown }) {
   }
 
   const text = stringifyAiValue(value);
-  if (!text) return <p className="mutedText">No answer returned.</p>;
+  if (!text) return null;
   return (
     <div className="aiTextAnswer">
-      {splitAiParagraphs(text).map((paragraph, index) => (
-        <p key={`${paragraph}-${index}`}>{paragraph}</p>
-      ))}
+      <MarkdownText>{text}</MarkdownText>
     </div>
   );
 }
@@ -5693,12 +5710,12 @@ function stringifyAiValue(value: unknown): string {
   return JSON.stringify(value);
 }
 
-function splitAiParagraphs(text: string): string[] {
-  return text
-    .replaceAll(/\\n/g, "\n")
-    .split(/\n{2,}/g)
-    .map((part) => part.replace(/\s+/g, " ").trim())
-    .filter(Boolean);
+function isEmptyAiValue(value: unknown): boolean {
+  if (value == null) return true;
+  if (typeof value === "string") return value.trim().length === 0;
+  if (Array.isArray(value)) return value.map((item) => stringifyAiValue(item)).filter(Boolean).length === 0;
+  if (typeof value === "object") return Object.keys(value as Record<string, unknown>).length === 0;
+  return false;
 }
 
 function formatAiFieldLabel(value: string): string {
diff --git a/apps/web/src/styles.css b/apps/web/src/styles.css
index 803bb86..12caefb 100644
--- a/apps/web/src/styles.css
+++ b/apps/web/src/styles.css
@@ -11411,3 +11411,89 @@ textarea:focus {
 .factsEntityMentions { font-family: var(--cm-mono); font-size: 10.5px; }
 .factsEntityDesc { font-size: 13px; line-height: 1.5; color: #4a5563; }
 .factsSalienceTrack { height: 5px; background: rgba(17, 20, 22, 0.06); margin-top: 3px; }
+
+/* Markdown rendering inside AI answer cards (grounded chat ANSWER / KEY POINTS,
+   run AI summary). The model returns markdown — render bold, nested bullet
+   lists, inline code, tables and links cleanly instead of flattening to a
+   run-on paragraph. Scoped to the answer surfaces only. */
+.aiTextAnswer { display: grid; gap: 9px; }
+.aiTextAnswer > :first-child { margin-top: 0; }
+.aiTextAnswer > :last-child { margin-bottom: 0; }
+.aiTextAnswer p,
+.aiTextAnswer li { margin: 0; color: #263244; font-size: 14px; line-height: 1.6; }
+.aiTextAnswer strong,
+.aiAnswerList strong { font-weight: 680; color: var(--cm-ink); }
+.aiTextAnswer em { font-style: italic; }
+.aiTextAnswer a,
+.aiAnswerList a { color: var(--olive); text-decoration: underline; text-underline-offset: 2px; }
+.aiTextAnswer a:hover,
+.aiAnswerList a:hover { color: var(--mint); }
+.aiTextAnswer ul,
+.aiTextAnswer ol { display: grid; gap: 6px; margin: 2px 0; padding-left: 20px; }
+.aiTextAnswer ul { list-style: disc; }
+.aiTextAnswer ol { list-style: decimal; }
+.aiTextAnswer li::marker { color: var(--olive); }
+.aiTextAnswer li > ul,
+.aiTextAnswer li > ol { margin-top: 6px; }
+.aiTextAnswer li > ul { list-style: circle; }
+.aiTextAnswer li p { margin: 0; }
+.aiTextAnswer h1,
+.aiTextAnswer h2,
+.aiTextAnswer h3,
+.aiTextAnswer h4 {
+  margin: 4px 0 0;
+  font-family: var(--cm-display);
+  font-weight: 640;
+  letter-spacing: -0.01em;
+  color: var(--cm-ink);
+  line-height: 1.3;
+}
+.aiTextAnswer h1 { font-size: 17px; }
+.aiTextAnswer h2 { font-size: 15.5px; }
+.aiTextAnswer h3,
+.aiTextAnswer h4 { font-size: 14px; }
+.aiTextAnswer :not(pre) > code,
+.aiAnswerList :not(pre) > code {
+  font-family: var(--cm-mono);
+  font-size: 12px;
+  padding: 1.5px 5px;
+  border-radius: 5px;
+  background: rgba(17, 20, 22, 0.05);
+  border: 1px solid var(--cm-border);
+  color: #1f4d2e;
+}
+.aiTextAnswer pre {
+  margin: 2px 0;
+  padding: 12px 14px;
+  overflow: auto;
+  border-radius: 10px;
+  background: #0f172a;
+  border: 1px solid #1e293b;
+}
+.aiTextAnswer pre code { font-family: var(--cm-mono); font-size: 12.5px; line-height: 1.55; color: #e2e8f0; }
+.aiTextAnswer blockquote {
+  margin: 2px 0;
+  padding: 4px 0 4px 12px;
+  border-left: 3px solid var(--lime-soft);
+  color: var(--cm-muted);
+}
+.aiTextAnswer table {
+  width: 100%;
+  border-collapse: collapse;
+  font-size: 13px;
+}
+.aiTextAnswer th,
+.aiTextAnswer td {
+  padding: 7px 10px;
+  border: 1px solid var(--cm-border);
+  text-align: left;
+  vertical-align: top;
+}
+.aiTextAnswer th { font-family: var(--cm-mono); font-size: 11px; font-weight: 600; text-transform: uppercase; letter-spacing: 0.04em; color: var(--cm-muted); background: rgba(17, 20, 22, 0.03); }
+.aiTextAnswer hr { border: none; border-top: 1px solid var(--cm-border); margin: 4px 0; }
+
+/* KEY POINTS list — markdown rendered inline inside each <li>. */
+.aiAnswerList { display: grid; gap: 7px; margin: 0; padding-left: 20px; list-style: disc; }
+.aiAnswerList li { margin: 0; color: #263244; font-size: 14px; line-height: 1.55; }
+.aiAnswerList li::marker { color: var(--olive); }
+.aiAnswerList li :not(pre) > code { font-family: var(--cm-mono); font-size: 12px; padding: 1.5px 5px; border-radius: 5px; background: rgba(17, 20, 22, 0.05); border: 1px solid var(--cm-border); color: #1f4d2e; }