Task

We need to enhance the current AI chat UI component to properly interpret and render markdown within incoming and outgoing messages. This will improve readability, allow richer formatting (headings, lists, code snippets, links), and create a more user-friendly experience.

User Story:
As a user interacting with the AI chat component, I want messages that contain markdown formatting (e.g., bold text, code blocks, lists, hyperlinks) to be displayed in a visually appealing and easy-to-read manner. This should help me quickly understand structured content and code examples shared within the conversation.

Scope & Requirements:

Rendering:

Parse markdown formatting (bold, italics, headers, lists, code blocks, inline code, links, etc.).
Ensure code blocks are syntax highlighted (if possible) or at least monospaced and easily distinguishable.
Maintain consistent styling that aligns with the product’s design language and accessibility standards (e.g., proper contrast ratios, readable font sizes).

User Input Handling:

Users may enter markdown or paste formatted text. The component should display the rendered result in real-time or upon message submission.

Edge Cases:

Unrecognized markdown syntax should gracefully fall back to plain text.
Ensure special characters and emojis do not break the formatting.
Messages containing large code blocks or multiple markdown elements should render efficiently without layout instability.

Testing & Validation:

Verify that basic markdown elements (headings, bold, italics, lists) render as intended.
Test code blocks with various languages for proper formatting (even if no syntax highlighting is implemented initially).
Confirm no regressions occur in existing UI elements or message rendering performance.
Acceptance Criteria:

Given a message containing markdown, when the user views it in the chat UI, then the markdown elements (headers, lists, code blocks, bold, italics, etc.) appear formatted according to the defined style guide.
Given a user enters markdown in the input field and sends a message, when the message appears in the chat history, then the formatting renders correctly (e.g., bold appears as bold text).