diff --git a/.env-example b/.env-example
deleted file mode 100644
index 928533d..0000000
--- a/.env-example
+++ /dev/null
@@ -1,2 +0,0 @@
-DATABASE_URL=your-database-url
-OPENAI_API_KEY=your-openai-api-key
\ No newline at end of file
diff --git a/services/aiService.js b/services/aiService.js
index 043f837..3c59a31 100644
--- a/services/aiService.js
+++ b/services/aiService.js
@@ -71,45 +71,94 @@ export function extractTaskFromAIResponse(responseContent) {
  * @returns {Object} Parsed and validated task data
  */
 export async function generateTaskWithAI(prompt) {
-  // TODO: STUDENT TASK - Complete this function to generate tasks using AI
-  //
-  // Instructions:
-  // 1. Check if the OpenAI API key is configured in environment variables
-  //    - Use process.env.OPENAI_API_KEY
-  //    - Throw an error if not configured
-  //
-  // 2. Create a system prompt that tells the AI what to do:
-  //    - Explain that it's a task management assistant
-  //    - Ask it to create a task with subtasks based on the user's description
-  //    - Specify the JSON format it should respond with
-  //    - Include guidelines for creating good tasks and subtasks
-  //
-  // 3. Create a user prompt that includes the user's task description
-  //    - Use the 'prompt' parameter passed to this function
-  //
-  // 4. Call the OpenAI API using the openai client:
-  //    - Use model: "gpt-3.5-turbo"
-  //    - Include both system and user messages
-  //    - Set temperature to 0.7 for balanced creativity
-  //    - Set max_tokens to 1000
-  //
-  // 5. Extract the response content from the API call
-  //    - Access completion.choices[0]?.message?.content
-  //    - Check if response exists, throw error if not
-  //
-  // 6. Use the extractTaskFromAIResponse function to parse and validate the response
-  //    - This function is already implemented for you
-  //    - Pass the responseContent to it
-  //
-  // 7. Return the parsed task data
-  //
-  // 8. Handle errors appropriately
-  //    - Wrap everything in a try-catch block
-  //    - Throw meaningful error messages
-  //
-
-
-  throw new Error(
-    "TODO: Complete the generateTaskWithAI function - see instructions above"
-  );
+  try {
+    // 1. Check if the OpenAI API key is configured
+    if (!process.env.OPENAI_API_KEY) {
+      throw new Error("OpenAI API key not configured in environment variables");
+    }
+
+    // 2. Create a system prompt that tells the AI what to do
+    const systemPrompt = `You are a task management assistant that helps users break down their goals into actionable tasks and subtasks.
+
+Your job is to:
+- Create a clear, actionable main task based on the user's description
+- Break it down into 3-5 specific subtasks that help complete the main task
+- Assign appropriate priority and status
+- Provide helpful descriptions
+
+Guidelines:
+- Make tasks specific and actionable
+- Each subtask should be a concrete step toward completing the main task
+- Use clear, professional language
+- Set realistic priorities (low, medium, high, urgent)
+- Default status should be "pending"
+
+IMPORTANT: Respond ONLY with valid JSON in exactly this format:
+{
+  "title": "Main task title",
+  "description": "Detailed description of what needs to be accomplished",
+  "priority": "medium",
+  "status": "pending",
+  "subtasks": [
+    {
+      "title": "Subtask 1 title",
+      "description": "Description of what this subtask involves",
+      "completed": false
+    },
+    {
+      "title": "Subtask 2 title", 
+      "description": "Description of what this subtask involves",
+      "completed": false
+    }
+  ]
+}`;
+
+    // 3. Create a user prompt that includes the user's task description
+    const userPrompt = `Please create a task with subtasks for: ${prompt}`;
+
+    // 4. Call the OpenAI API
+    const completion = await openai.chat.completions.create({
+      model: "gpt-3.5-turbo",
+      messages: [
+        { role: "system", content: systemPrompt },
+        { role: "user", content: userPrompt }
+      ],
+      temperature: 0.7,
+      max_tokens: 1000
+    });
+
+    // 5. Extract the response content from the API call
+    const responseContent = completion.choices[0]?.message?.content;
+    
+    if (!responseContent) {
+      throw new Error("No response received from OpenAI API");
+    }
+
+    // 6. Use the extractTaskFromAIResponse function to parse and validate the response
+    const parsedTaskData = extractTaskFromAIResponse(responseContent);
+
+    // 7. Return the parsed task data
+    return parsedTaskData;
+
+  } catch (error) {
+    // 8. Handle errors appropriately
+    if (error.message.includes("OpenAI API key not configured")) {
+      throw error; // Re-throw configuration errors as-is
+    }
+    
+    if (error.code === 'insufficient_quota') {
+      throw new Error("OpenAI API quota exceeded. Please check your billing settings.");
+    }
+    
+    if (error.code === 'invalid_api_key') {
+      throw new Error("Invalid OpenAI API key. Please check your configuration.");
+    }
+    
+    if (error.message.includes("Failed to extract task from AI response")) {
+      throw new Error(`Failed to parse AI response: ${error.message}`);
+    }
+
+    // For any other errors, provide a meaningful message
+    throw new Error(`AI task generation failed: ${error.message}`);
+  }
 }