diff --git a/frontend/src/components/AIPanel.tsx b/frontend/src/components/AIPanel.tsx
index 510945c..814d8b7 100644
--- a/frontend/src/components/AIPanel.tsx
+++ b/frontend/src/components/AIPanel.tsx
@@ -1,7 +1,8 @@
 import { useCallback, useState } from 'react';
 import { useEditorStore } from '../store/editorStore';
 import { useAIStore } from '../store/aiStore';
-import { Sparkles, Scissors, Film, Loader2, Check, X, Play, Download, RotateCcw, RefreshCw } from 'lucide-react';
+import { useLicenseStore } from '../store/licenseStore';
+import { Sparkles, Scissors, Film, Loader2, Check, X, Play, Download, RotateCcw, RefreshCw, Lock } from 'lucide-react';
 import type { ClipSuggestion } from '../types/project';
 
 interface AIPanelProps {
@@ -12,6 +13,8 @@ interface AIPanelProps {
 
 export default function AIPanel({ onReprocess, whisperModel, setWhisperModel }: AIPanelProps) {
   const { words, videoPath, backendUrl, deleteWordRange, setCurrentTime } = useEditorStore();
+  const canUseAI = useLicenseStore((s) => s.canUseAI);
+  const setShowLicenseDialog = useLicenseStore((s) => s.setShowDialog);
   const {
     defaultProvider,
     providers,
@@ -188,169 +191,205 @@ export default function AIPanel({ onReprocess, whisperModel, setWhisperModel }:
       <div className="flex-1 overflow-y-auto p-4">
         {activeTab === 'filler' && (
           <div className="space-y-4">
-            <p className="text-xs text-editor-text-muted">
-              Use AI to detect and remove filler words like "um", "uh", "like", "you know" from
-              your transcript.
-            </p>
-            <div className="space-y-1.5">
-              <label className="text-[11px] text-editor-text-muted font-medium">
-                Custom filler words (comma-separated)
-              </label>
-              <input
-                type="text"
-                value={customFillerWords}
-                onChange={(e) => setCustomFillerWords(e.target.value)}
-                placeholder="e.g. okay, alright, anyway"
-                className="w-full px-2.5 py-1.5 text-xs bg-editor-surface border border-editor-border rounded focus:border-editor-accent focus:outline-none"
-              />
-            </div>
-            <button
-              onClick={detectFillers}
-              disabled={isProcessing || words.length === 0}
-              title="Scan the entire transcript for filler words (um, uh, like, you know) and mark for removal"
-              className="w-full flex items-center justify-center gap-2 px-4 py-2.5 bg-editor-accent hover:bg-editor-accent-hover disabled:opacity-40 rounded-lg text-sm font-medium transition-colors"
-            >
-              {isProcessing ? (
-                <>
-                  <Loader2 className="w-4 h-4 animate-spin" />
-                  {processingMessage}
-                </>
-              ) : (
-                <>
-                  <Sparkles className="w-4 h-4" />
-                  Detect Filler Words
-                </>
-              )}
-            </button>
-
-            {error && (
-              <div className="bg-red-500/10 border border-red-500/40 rounded text-xs text-red-300 p-2 flex items-center justify-between">
-                <span>{error}</span>
+            {!canUseAI ? (
+              <div className="text-center py-8 px-4">
+                <Lock className="w-8 h-8 text-editor-text-muted mx-auto mb-3" />
+                <p className="text-sm font-medium mb-1">AI editing requires a license</p>
+                <p className="text-xs text-editor-text-muted mb-4">
+                  Upgrade to Pro or Business to unlock filler word removal, clip suggestions, and more.
+                </p>
                 <button
-                  onClick={detectFillers}
-                  className="flex items-center gap-1 px-2 py-1 text-xs bg-red-500/20 hover:bg-red-500/30 rounded transition-colors shrink-0 ml-2"
+                  onClick={() => setShowLicenseDialog(true)}
+                  className="px-4 py-2 bg-editor-accent hover:bg-editor-accent-hover text-white rounded-lg text-sm font-medium transition-colors"
                 >
-                  <RotateCcw className="w-3 h-3" /> Retry
+                  Upgrade Now
                 </button>
               </div>
-            )}
-            {fillerResult && fillerResult.fillerWords.length > 0 && (
-              <div className="space-y-3">
-                <div className="flex items-center justify-between">
-                  <span className="text-xs font-medium">
-                    Found {fillerResult.fillerWords.length} filler words
-                  </span>
-                  <div className="flex gap-1">
+            ) : (
+              <>
+                <p className="text-xs text-editor-text-muted">
+                  Use AI to detect and remove filler words like "um", "uh", "like", "you know" from
+                  your transcript.
+                </p>
+                <div className="space-y-1.5">
+                  <label className="text-[11px] text-editor-text-muted font-medium">
+                    Custom filler words (comma-separated)
+                  </label>
+                  <input
+                    type="text"
+                    value={customFillerWords}
+                    onChange={(e) => setCustomFillerWords(e.target.value)}
+                    placeholder="e.g. okay, alright, anyway"
+                    className="w-full px-2.5 py-1.5 text-xs bg-editor-surface border border-editor-border rounded focus:border-editor-accent focus:outline-none"
+                  />
+                </div>
+                <button
+                  onClick={detectFillers}
+                  disabled={isProcessing || words.length === 0}
+                  title="Scan the entire transcript for filler words (um, uh, like, you know) and mark for removal"
+                  className="w-full flex items-center justify-center gap-2 px-4 py-2.5 bg-editor-accent hover:bg-editor-accent-hover disabled:opacity-40 rounded-lg text-sm font-medium transition-colors"
+                >
+                  {isProcessing ? (
+                    <>
+                      <Loader2 className="w-4 h-4 animate-spin" />
+                      {processingMessage}
+                    </>
+                  ) : (
+                    <>
+                      <Sparkles className="w-4 h-4" />
+                      Detect Filler Words
+                    </>
+                  )}
+                </button>
+
+                {error && (
+                  <div className="bg-red-500/10 border border-red-500/40 rounded text-xs text-red-300 p-2 flex items-center justify-between">
+                    <span>{error}</span>
                     <button
-                      onClick={applyFillerDeletions}
-                      title="Create cut ranges for all detected filler words at once"
-                      className="flex items-center gap-1 px-2 py-1 text-xs bg-editor-success/20 text-editor-success rounded hover:bg-editor-success/30"
+                      onClick={detectFillers}
+                      className="flex items-center gap-1 px-2 py-1 text-xs bg-red-500/20 hover:bg-red-500/30 rounded transition-colors shrink-0 ml-2"
                     >
-                      <Check className="w-3 h-3" /> Apply All
-                    </button>
-                    <button
-                      onClick={() => { setFillerResult(null); setError(null); }}
-                      title="Clear detected filler word results without applying"
-                      className="flex items-center gap-1 px-2 py-1 text-xs bg-editor-border text-editor-text-muted rounded hover:bg-editor-surface"
-                    >
-                      <X className="w-3 h-3" /> Dismiss
+                      <RotateCcw className="w-3 h-3" /> Retry
                     </button>
                   </div>
-                </div>
-                <div className="space-y-1 max-h-64 overflow-y-auto">
-                  {fillerResult.fillerWords.map((fw) => (
-                    <div
-                      key={fw.index}
-                      className="flex items-center justify-between px-2 py-1.5 bg-editor-word-filler rounded text-xs"
-                    >
-                      <span>
-                        <strong>"{fw.word}"</strong>
-                        <span className="text-editor-text-muted ml-1">— {fw.reason}</span>
+                )}
+                {fillerResult && fillerResult.fillerWords.length > 0 && (
+                  <div className="space-y-3">
+                    <div className="flex items-center justify-between">
+                      <span className="text-xs font-medium">
+                        Found {fillerResult.fillerWords.length} filler words
                       </span>
+                      <div className="flex gap-1">
+                        <button
+                          onClick={applyFillerDeletions}
+                          title="Create cut ranges for all detected filler words at once"
+                          className="flex items-center gap-1 px-2 py-1 text-xs bg-editor-success/20 text-editor-success rounded hover:bg-editor-success/30"
+                        >
+                          <Check className="w-3 h-3" /> Apply All
+                        </button>
+                        <button
+                          onClick={() => { setFillerResult(null); setError(null); }}
+                          title="Clear detected filler word results without applying"
+                          className="flex items-center gap-1 px-2 py-1 text-xs bg-editor-border text-editor-text-muted rounded hover:bg-editor-surface"
+                        >
+                          <X className="w-3 h-3" /> Dismiss
+                        </button>
+                      </div>
                     </div>
-                  ))}
-                </div>
-              </div>
-            )}
+                    <div className="space-y-1 max-h-64 overflow-y-auto">
+                      {fillerResult.fillerWords.map((fw) => (
+                        <div
+                          key={fw.index}
+                          className="flex items-center justify-between px-2 py-1.5 bg-editor-word-filler rounded text-xs"
+                        >
+                          <span>
+                            <strong>"{fw.word}"</strong>
+                            <span className="text-editor-text-muted ml-1">— {fw.reason}</span>
+                          </span>
+                        </div>
+                      ))}
+                    </div>
+                  </div>
+                )}
 
-            {fillerResult && fillerResult.fillerWords.length === 0 && (
-              <p className="text-xs text-editor-success">No filler words detected.</p>
+                {fillerResult && fillerResult.fillerWords.length === 0 && (
+                  <p className="text-xs text-editor-success">No filler words detected.</p>
+                )}
+              </>
             )}
           </div>
         )}
 
         {activeTab === 'clips' && (
           <div className="space-y-4">
-            <p className="text-xs text-editor-text-muted">
-              AI analyzes your transcript and suggests the most engaging segments for a
-              YouTube Short or social media clip.
-            </p>
-            <button
-              onClick={createClips}
-              disabled={isProcessing || words.length === 0}
-              title="Analyze transcript to find the most engaging 20-60 second segments for social media"
-              className="w-full flex items-center justify-center gap-2 px-4 py-2.5 bg-editor-accent hover:bg-editor-accent-hover disabled:opacity-40 rounded-lg text-sm font-medium transition-colors"
-            >
-              {isProcessing ? (
-                <>
-                  <Loader2 className="w-4 h-4 animate-spin" />
-                  {processingMessage}
-                </>
-              ) : (
-                <>
-                  <Film className="w-4 h-4" />
-                  Find Best Clips
-                </>
-              )}
-            </button>
-
-            {error && (
-              <div className="bg-red-500/10 border border-red-500/40 rounded text-xs text-red-300 p-2 flex items-center justify-between">
-                <span>{error}</span>
+            {!canUseAI ? (
+              <div className="text-center py-8 px-4">
+                <Lock className="w-8 h-8 text-editor-text-muted mx-auto mb-3" />
+                <p className="text-sm font-medium mb-1">AI clip suggestions require a license</p>
+                <p className="text-xs text-editor-text-muted mb-4">
+                  Upgrade to Pro or Business to find the best segments for social media clips.
+                </p>
                 <button
-                  onClick={createClips}
-                  className="flex items-center gap-1 px-2 py-1 text-xs bg-red-500/20 hover:bg-red-500/30 rounded transition-colors shrink-0 ml-2"
+                  onClick={() => setShowLicenseDialog(true)}
+                  className="px-4 py-2 bg-editor-accent hover:bg-editor-accent-hover text-white rounded-lg text-sm font-medium transition-colors"
                 >
-                  <RotateCcw className="w-3 h-3" /> Retry
+                  Upgrade Now
                 </button>
               </div>
-            )}
-            {clipSuggestions.length > 0 && (
-              <div className="space-y-3">
-                {clipSuggestions.map((clip, i) => (
-                  <div key={i} className="p-3 bg-editor-surface rounded-lg space-y-2">
-                    <div className="flex items-center justify-between">
-                      <span className="text-xs font-semibold">{clip.title}</span>
-                      <span className="text-[10px] text-editor-text-muted">
-                        {Math.round(clip.endTime - clip.startTime)}s
-                      </span>
-                    </div>
-                    <p className="text-[11px] text-editor-text-muted">{clip.reason}</p>
-                    <div className="flex gap-2">
-                      <button
-                        onClick={() => handlePreviewClip(clip)}
-                        title="Seek to this clip's position and play a preview"
-                        className="flex-1 flex items-center justify-center gap-1 px-2 py-1.5 text-xs bg-editor-accent/20 text-editor-accent rounded hover:bg-editor-accent/30 transition-colors"
-                      >
-                        <Play className="w-3 h-3" /> Preview
-                      </button>
-                      <button
-                        onClick={() => handleExportClip(clip, i)}
-                        disabled={exportingClipIndex === i}
-                        title="Export just this segment as a standalone video file"
-                        className="flex-1 flex items-center justify-center gap-1 px-2 py-1.5 text-xs bg-editor-success/20 text-editor-success rounded hover:bg-editor-success/30 disabled:opacity-40 transition-colors"
-                      >
-                        {exportingClipIndex === i ? (
-                          <Loader2 className="w-3 h-3 animate-spin" />
-                        ) : (
-                          <Download className="w-3 h-3" />
-                        )}
-                        Export
-                      </button>
-                    </div>
+            ) : (
+              <>
+                <p className="text-xs text-editor-text-muted">
+                  AI analyzes your transcript and suggests the most engaging segments for a
+                  YouTube Short or social media clip.
+                </p>
+                <button
+                  onClick={createClips}
+                  disabled={isProcessing || words.length === 0}
+                  title="Analyze transcript to find the most engaging 20-60 second segments for social media"
+                  className="w-full flex items-center justify-center gap-2 px-4 py-2.5 bg-editor-accent hover:bg-editor-accent-hover disabled:opacity-40 rounded-lg text-sm font-medium transition-colors"
+                >
+                  {isProcessing ? (
+                    <>
+                      <Loader2 className="w-4 h-4 animate-spin" />
+                      {processingMessage}
+                    </>
+                  ) : (
+                    <>
+                      <Film className="w-4 h-4" />
+                      Find Best Clips
+                    </>
+                  )}
+                </button>
+
+                {error && (
+                  <div className="bg-red-500/10 border border-red-500/40 rounded text-xs text-red-300 p-2 flex items-center justify-between">
+                    <span>{error}</span>
+                    <button
+                      onClick={createClips}
+                      className="flex items-center gap-1 px-2 py-1 text-xs bg-red-500/20 hover:bg-red-500/30 rounded transition-colors shrink-0 ml-2"
+                    >
+                      <RotateCcw className="w-3 h-3" /> Retry
+                    </button>
                   </div>
-                ))}
-              </div>
+                )}
+                {clipSuggestions.length > 0 && (
+                  <div className="space-y-3">
+                    {clipSuggestions.map((clip, i) => (
+                      <div key={i} className="p-3 bg-editor-surface rounded-lg space-y-2">
+                        <div className="flex items-center justify-between">
+                          <span className="text-xs font-semibold">{clip.title}</span>
+                          <span className="text-[10px] text-editor-text-muted">
+                            {Math.round(clip.endTime - clip.startTime)}s
+                          </span>
+                        </div>
+                        <p className="text-[11px] text-editor-text-muted">{clip.reason}</p>
+                        <div className="flex gap-2">
+                          <button
+                            onClick={() => handlePreviewClip(clip)}
+                            title="Seek to this clip's position and play a preview"
+                            className="flex-1 flex items-center justify-center gap-1 px-2 py-1.5 text-xs bg-editor-accent/20 text-editor-accent rounded hover:bg-editor-accent/30 transition-colors"
+                          >
+                            <Play className="w-3 h-3" /> Preview
+                          </button>
+                          <button
+                            onClick={() => handleExportClip(clip, i)}
+                            disabled={exportingClipIndex === i}
+                            title="Export just this segment as a standalone video file"
+                            className="flex-1 flex items-center justify-center gap-1 px-2 py-1.5 text-xs bg-editor-success/20 text-editor-success rounded hover:bg-editor-success/30 disabled:opacity-40 transition-colors"
+                          >
+                            {exportingClipIndex === i ? (
+                              <Loader2 className="w-3 h-3 animate-spin" />
+                            ) : (
+                              <Download className="w-3 h-3" />
+                            )}
+                            Export
+                          </button>
+                        </div>
+                      </div>
+                    ))}
+                  </div>
+                )}
+              </>
             )}
           </div>
         )}
diff --git a/frontend/src/store/licenseStore.test.ts b/frontend/src/store/licenseStore.test.ts
index 37f4892..d155c32 100644
--- a/frontend/src/store/licenseStore.test.ts
+++ b/frontend/src/store/licenseStore.test.ts
@@ -16,7 +16,7 @@ function mockElectronAPI(overrides: Record<string, any> = {}) {
 describe('licenseStore', () => {
   beforeEach(() => {
     mockElectronAPI();
-    useLicenseStore.setState({ status: null, isLoaded: false, canEdit: true, showDialog: false });
+    useLicenseStore.setState({ status: null, isLoaded: false, canEdit: true, canUseAI: false, showDialog: false });
   });
 
   describe('canEdit', () => {
@@ -45,10 +45,28 @@ describe('licenseStore', () => {
     });
 
     test('is false when status is null', () => {
-      useLicenseStore.setState({ status: null, canEdit: true });
+      useLicenseStore.setState({ status: null, canEdit: true, canUseAI: false });
       useLicenseStore.getState().setStatus(null);
       expect(useLicenseStore.getState().canEdit).toBe(false);
     });
+
+    test('is true for Licensed status', () => {
+      useLicenseStore.getState().setStatus({ tag: 'Licensed', license: { license_id: 'x', tier: 'pro', customer_email: 'a@b.com', expires_at: 9999999999, features: [], issued_at: 1, max_activations: 1 } });
+      expect(useLicenseStore.getState().canEdit).toBe(true);
+      expect(useLicenseStore.getState().canUseAI).toBe(true);
+    });
+
+    test('is false for Trial status', () => {
+      useLicenseStore.getState().setStatus({ tag: 'Trial', days_remaining: 5, started_at: Date.now() });
+      expect(useLicenseStore.getState().canEdit).toBe(true);
+      expect(useLicenseStore.getState().canUseAI).toBe(false);
+    });
+
+    test('is false for Expired status', () => {
+      useLicenseStore.getState().setStatus({ tag: 'Expired' });
+      expect(useLicenseStore.getState().canEdit).toBe(false);
+      expect(useLicenseStore.getState().canUseAI).toBe(false);
+    });
   });
 
   describe('checkStatus', () => {
@@ -76,6 +94,7 @@ describe('licenseStore', () => {
       await useLicenseStore.getState().checkStatus();
       expect(useLicenseStore.getState().status?.tag).toBe('Expired');
       expect(useLicenseStore.getState().canEdit).toBe(false);
+      expect(useLicenseStore.getState().canUseAI).toBe(false);
     });
 
     test('handles missing electronAPI', async () => {
@@ -83,6 +102,7 @@ describe('licenseStore', () => {
       await useLicenseStore.getState().checkStatus();
       expect(useLicenseStore.getState().status?.tag).toBe('Expired');
       expect(useLicenseStore.getState().canEdit).toBe(false);
+      expect(useLicenseStore.getState().canUseAI).toBe(false);
     });
 
     test('sets isLoaded to true after check', async () => {
@@ -99,6 +119,7 @@ describe('licenseStore', () => {
       expect(result).toBe(true);
       expect(useLicenseStore.getState().status?.tag).toBe('Licensed');
       expect(useLicenseStore.getState().canEdit).toBe(true);
+      expect(useLicenseStore.getState().canUseAI).toBe(true);
     });
 
     test('returns false on invalid key', async () => {
@@ -131,6 +152,7 @@ describe('licenseStore', () => {
       await useLicenseStore.getState().deactivateLicense();
       expect(useLicenseStore.getState().status?.tag).toBe('Expired');
       expect(useLicenseStore.getState().canEdit).toBe(false);
+      expect(useLicenseStore.getState().canUseAI).toBe(false);
     });
 
     test('restores Trial when trial is still valid', async () => {
@@ -141,14 +163,16 @@ describe('licenseStore', () => {
       await useLicenseStore.getState().deactivateLicense();
       expect(useLicenseStore.getState().status?.tag).toBe('Trial');
       expect(useLicenseStore.getState().canEdit).toBe(true);
+      expect(useLicenseStore.getState().canUseAI).toBe(false);
     });
 
     test('handles API error', async () => {
       mockElectronAPI({ deactivateLicense: vi.fn().mockRejectedValue(new Error('fail')) });
-      useLicenseStore.setState({ status: { tag: 'Licensed', license: {} as any }, canEdit: true });
+      useLicenseStore.setState({ status: { tag: 'Licensed', license: {} as any }, canEdit: true, canUseAI: true });
       await useLicenseStore.getState().deactivateLicense();
       expect(useLicenseStore.getState().status?.tag).toBe('Expired');
       expect(useLicenseStore.getState().canEdit).toBe(false);
+      expect(useLicenseStore.getState().canUseAI).toBe(false);
     });
   });
 
diff --git a/frontend/src/store/licenseStore.ts b/frontend/src/store/licenseStore.ts
index f32058b..bf599ad 100644
--- a/frontend/src/store/licenseStore.ts
+++ b/frontend/src/store/licenseStore.ts
@@ -25,6 +25,7 @@ interface LicenseState {
   isLoaded: boolean;
   showDialog: boolean;
   canEdit: boolean;
+  canUseAI: boolean;
 }
 
 interface LicenseActions {
@@ -43,10 +44,12 @@ export const useLicenseStore = create<LicenseState & LicenseActions>()(
       isLoaded: false,
       showDialog: false,
       canEdit: false,
+      canUseAI: false,
 
       setStatus: (status) => {
         const canEdit = status?.tag === 'Licensed' || status?.tag === 'Trial';
-        set({ status, isLoaded: true, canEdit });
+        const canUseAI = status?.tag === 'Licensed';
+        set({ status, isLoaded: true, canEdit, canUseAI });
       },
 
       setShowDialog: (show) => set({ showDialog: show }),
@@ -55,9 +58,10 @@ export const useLicenseStore = create<LicenseState & LicenseActions>()(
         try {
           const status = await window.electronAPI?.getAppStatus();
           const canEdit = status?.tag === 'Licensed' || status?.tag === 'Trial';
-          set({ status: status || { tag: 'Expired' }, isLoaded: true, canEdit });
+          const canUseAI = status?.tag === 'Licensed';
+          set({ status: status || { tag: 'Expired' }, isLoaded: true, canEdit, canUseAI });
         } catch {
-          set({ status: { tag: 'Expired' }, isLoaded: true, canEdit: false });
+          set({ status: { tag: 'Expired' }, isLoaded: true, canEdit: false, canUseAI: false });
         }
       },
 
@@ -65,7 +69,7 @@ export const useLicenseStore = create<LicenseState & LicenseActions>()(
         try {
           const license = await window.electronAPI?.activateLicense(key);
           if (!license) return false;
-          set({ status: { tag: 'Licensed', license }, showDialog: false, canEdit: true });
+          set({ status: { tag: 'Licensed', license }, showDialog: false, canEdit: true, canUseAI: true });
           return true;
         } catch {
           return false;
@@ -77,9 +81,10 @@ export const useLicenseStore = create<LicenseState & LicenseActions>()(
           await window.electronAPI?.deactivateLicense();
           const s = await window.electronAPI?.getAppStatus();
           const canEdit = s?.tag === 'Licensed' || s?.tag === 'Trial';
-          set({ status: s || { tag: 'Expired' }, isLoaded: true, canEdit });
+          const canUseAI = s?.tag === 'Licensed';
+          set({ status: s || { tag: 'Expired' }, isLoaded: true, canEdit, canUseAI });
         } catch {
-          set({ status: { tag: 'Expired' }, isLoaded: true, canEdit: false });
+          set({ status: { tag: 'Expired' }, isLoaded: true, canEdit: false, canUseAI: false });
         }
       },