diff --git a/README.md b/README.md
index de95051..95fc8f9 100644
--- a/README.md
+++ b/README.md
@@ -129,6 +129,26 @@ Required environment variables:
 - `DEVHUB_BASE_URL` - Base URL for DevHub API
 - `DEVHUB_SITE_ID` - Site identifier
 
+## AI Toolkit Commands
+
+The DevHub CLI includes AI toolkit management for setting up AI-powered development tools and templates.
+
+### `devhub aikit init`
+
+Downloads and installs the DevHub AI toolkit to your current working directory.
+
+```bash
+devhub aikit init
+```
+
+This command will:
+- Download the latest AI toolkit from the DevHub CLI AI Toolkit repository
+- Extract all toolkit files to your current directory
+- Skip existing files to avoid overwriting your customizations
+- Provide feedback on extracted and skipped files
+
+The AI toolkit includes templates, examples, and utilities for AI-powered development workflows with DevHub.
+
 ## Development
 
 To contribute to this tool, first checkout the code. Then create a new virtual environment:
diff --git a/devhub/cli.py b/devhub/cli.py
index e6f06e7..cc4d86c 100644
--- a/devhub/cli.py
+++ b/devhub/cli.py
@@ -2,6 +2,7 @@
 from dotenv import load_dotenv
 import os
 
+from .commands.aikit import aikit
 from .commands.theme import theme
 
 if 'WORKING_DIR' not in os.environ:
@@ -18,4 +19,5 @@
 def cli():
     "CLI interface to devhub"
 
+cli.add_command(aikit)
 cli.add_command(theme)
diff --git a/devhub/commands/aikit.py b/devhub/commands/aikit.py
new file mode 100644
index 0000000..2b40b0e
--- /dev/null
+++ b/devhub/commands/aikit.py
@@ -0,0 +1,82 @@
+import os
+import tempfile
+import zipfile
+import shutil
+from urllib.request import urlretrieve
+
+import click
+
+
+@click.group()
+def aikit():
+    """AI toolkit commands for DevHub."""
+    pass
+
+
+@aikit.command()
+def init(toolkit_url='https://github.com/devhub/devhub-cli-ai-toolkit/archive/refs/heads/main.zip'):
+    """Initialize AI toolkit by downloading and extracting toolkit files."""
+    
+    working_dir = os.environ.get('WORKING_DIR', os.getcwd())
+    
+    click.echo(f'Downloading AI toolkit... {toolkit_url}')
+    
+    # Create temporary file for download
+    with tempfile.NamedTemporaryFile(suffix='.zip', delete=False) as temp_file:
+        temp_filename = temp_file.name
+    
+    try:
+        # Download the zip file
+        urlretrieve(toolkit_url, temp_filename)
+        click.echo('Download completed.')
+        
+        # Extract the zip file
+        click.echo('Extracting toolkit files...')
+        
+        with zipfile.ZipFile(temp_filename, 'r') as zip_ref:
+            # Get all file names in the zip
+            all_files = zip_ref.namelist()
+            
+            # Filter files that are in the devhub-cli-ai-toolkit-main directory
+            toolkit_files = [f for f in all_files if f.startswith('devhub-cli-ai-toolkit-main/') and f != 'devhub-cli-ai-toolkit-main/']
+            
+            extracted_count = 0
+            skipped_count = 0
+            
+            for file_path in toolkit_files:
+                # Remove the root directory prefix
+                relative_path = file_path[len('devhub-cli-ai-toolkit-main/'):]
+                
+                # Skip empty relative paths or directories
+                if not relative_path or file_path.endswith('/'):
+                    continue
+                
+                target_path = os.path.join(working_dir, relative_path)
+                
+                # Check if file already exists
+                if os.path.exists(target_path):
+                    click.echo(f'Skipping existing file: {relative_path}')
+                    skipped_count += 1
+                    continue
+                
+                # Create directory if it doesn't exist
+                target_dir = os.path.dirname(target_path)
+                if target_dir:
+                    os.makedirs(target_dir, exist_ok=True)
+                
+                # Extract file
+                with zip_ref.open(file_path) as source, open(target_path, 'wb') as target:
+                    shutil.copyfileobj(source, target)
+                
+                click.echo(f'Extracted: {relative_path}')
+                extracted_count += 1
+        
+        click.echo(click.style(f'AI toolkit initialization completed!', fg='green'))
+        click.echo(f'Extracted {extracted_count} files, skipped {skipped_count} existing files.')
+        
+    except Exception as e:
+        click.echo(click.style(f'Error during AI toolkit initialization: {str(e)}', fg='red'))
+    finally:
+        # Clean up temporary file
+        if os.path.exists(temp_filename):
+            os.unlink(temp_filename)
\ No newline at end of file
diff --git a/pyproject.toml b/pyproject.toml
index 163a2d8..2f75f89 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,6 +1,6 @@
 [project]
 name = "devhub-cli"
-version = "0.1.1"
+version = "0.1.2"
 description = "CLI interface to devhub"
 readme = "README.md"
 authors = [{name = "Daniel Rust"}]