diff --git a/python/voice_to_notes/ipc/handlers.py b/python/voice_to_notes/ipc/handlers.py
index 2e64f85..e78f3c6 100644
--- a/python/voice_to_notes/ipc/handlers.py
+++ b/python/voice_to_notes/ipc/handlers.py
@@ -254,15 +254,15 @@ def make_ai_chat_handler() -> HandlerFunc:
             )
 
         if action == "configure":
-            # Re-create a provider with custom settings
+            # Re-create a provider with custom settings and set it active
             provider_name = payload.get("provider", "")
             config = payload.get("config", {})
             if provider_name == "local":
                 from voice_to_notes.providers.local_provider import LocalProvider
 
                 service.register_provider("local", LocalProvider(
-                    base_url=config.get("base_url", "http://localhost:8080"),
-                    model=config.get("model", "local"),
+                    base_url=config.get("base_url", "http://localhost:11434/v1"),
+                    model=config.get("model", "llama3.2"),
                 ))
             elif provider_name == "openai":
                 from voice_to_notes.providers.openai_provider import OpenAIProvider
@@ -286,6 +286,10 @@ def make_ai_chat_handler() -> HandlerFunc:
                     api_key=config.get("api_key"),
                     api_base=config.get("api_base"),
                 ))
+            # Set the configured provider as active
+            print(f"[sidecar] Configured AI provider: {provider_name} with config: {config}", file=sys.stderr, flush=True)
+            if provider_name in ("local", "openai", "anthropic", "litellm"):
+                service.set_active(provider_name)
             return IPCMessage(
                 id=msg.id,
                 type="ai.configured",