diff --git a/plugins/woo-ai/changelog/update-product-slug-ai b/plugins/woo-ai/changelog/update-product-slug-ai
new file mode 100644
index 00000000000..5f6a89c4cec
--- /dev/null
+++ b/plugins/woo-ai/changelog/update-product-slug-ai
@@ -0,0 +1,4 @@
+Significance: minor
+Type: add
+
+Update the product's permalink (slug) when an AI suggested title is selected.
diff --git a/plugins/woo-ai/src/hooks/index.ts b/plugins/woo-ai/src/hooks/index.ts
index c9f68c701cb..8588128cf21 100644
--- a/plugins/woo-ai/src/hooks/index.ts
+++ b/plugins/woo-ai/src/hooks/index.ts
@@ -1,3 +1,5 @@
 export * from './useTinyEditor';
 export * from './useCompletion';
 export * from './useFeedbackSnackbar';
+export * from './useProductSlug';
+export * from './useProductDataSuggestions';
diff --git a/plugins/woo-ai/src/hooks/useProductSlug.ts b/plugins/woo-ai/src/hooks/useProductSlug.ts
new file mode 100644
index 00000000000..6e11a86c3cd
--- /dev/null
+++ b/plugins/woo-ai/src/hooks/useProductSlug.ts
@@ -0,0 +1,77 @@
+/**
+ * External dependencies
+ */
+import { useRef } from '@wordpress/element';
+
+type UseProductSlugHook = {
+	updateProductSlug: ( title: string, postId: number ) => Promise< void >;
+};
+
+declare global {
+	interface Window {
+		ajaxurl?: string;
+	}
+}
+
+export const useProductSlug = (): UseProductSlugHook => {
+	const slugInputRef = useRef< HTMLInputElement >(
+		document.querySelector( '#post_name' )
+	);
+
+	const updateSlugInDOM = ( responseData: string ) => {
+		const editSlugBox = document.getElementById( 'edit-slug-box' );
+		if ( editSlugBox ) {
+			editSlugBox.innerHTML = responseData;
+
+			const newSlug = document.getElementById(
+				'editable-post-name-full'
+			)?.innerText;
+			if ( newSlug && slugInputRef.current ) {
+				slugInputRef.current.value = newSlug;
+				slugInputRef.current.setAttribute( 'value', newSlug );
+			}
+		}
+	};
+
+	const updateProductSlug = async (
+		title: string,
+		postId: number
+	): Promise< void > => {
+		const ajaxUrl: string = window?.ajaxurl || '/wp-admin/admin-ajax.php';
+		const samplePermalinkNonce = document
+			.getElementById( 'samplepermalinknonce' )
+			?.getAttribute( 'value' );
+
+		if ( ! samplePermalinkNonce ) {
+			throw new Error( 'Nonce could not be found in the DOM' );
+		}
+
+		const formData = new FormData();
+		formData.append( 'action', 'sample-permalink' );
+		formData.append( 'post_id', postId.toString() );
+		formData.append( 'new_title', title );
+		formData.append( 'new_slug', title );
+		formData.append( 'samplepermalinknonce', samplePermalinkNonce );
+
+		try {
+			const response = await fetch( ajaxUrl, {
+				method: 'POST',
+				body: formData,
+			} );
+
+			const responseData = await response.text();
+
+			if ( responseData !== '-1' ) {
+				updateSlugInDOM( responseData );
+			} else {
+				throw new Error( 'Invalid response!' );
+			}
+		} catch ( e ) {
+			throw new Error( "Couldn't update the slug!" );
+		}
+	};
+
+	return {
+		updateProductSlug,
+	};
+};
diff --git a/plugins/woo-ai/src/product-name/name-utils.ts b/plugins/woo-ai/src/product-name/name-utils.ts
index e284d29747e..066051a9962 100644
--- a/plugins/woo-ai/src/product-name/name-utils.ts
+++ b/plugins/woo-ai/src/product-name/name-utils.ts
@@ -5,7 +5,7 @@ import { recordTracksFactory, getPostId } from '../utils';
 
 type TracksData = Record<
 	string,
-	string | number | Array< Record< string, string | number > >
+	string | number | null | Array< Record< string, string | number | null > >
 >;
 
 export const recordNameTracks = recordTracksFactory< TracksData >(
diff --git a/plugins/woo-ai/src/product-name/product-name-suggestions.tsx b/plugins/woo-ai/src/product-name/product-name-suggestions.tsx
index c854b48c313..716d30b0924 100644
--- a/plugins/woo-ai/src/product-name/product-name-suggestions.tsx
+++ b/plugins/woo-ai/src/product-name/product-name-suggestions.tsx
@@ -11,7 +11,7 @@ import { useCallback, useEffect, useRef, useState } from '@wordpress/element';
 import MagicIcon from '../../assets/images/icons/magic.svg';
 import AlertIcon from '../../assets/images/icons/alert.svg';
 import { productData } from '../utils';
-import { useProductDataSuggestions } from '../hooks/useProductDataSuggestions';
+import { useProductDataSuggestions, useProductSlug } from '../hooks';
 import {
 	ProductDataSuggestion,
 	ProductDataSuggestionRequest,
@@ -56,6 +56,7 @@ export const ProductNameSuggestions = () => {
 		[]
 	);
 	const { fetchSuggestions } = useProductDataSuggestions();
+	const { updateProductSlug } = useProductSlug();
 	const nameInputRef = useRef< HTMLInputElement >(
 		document.querySelector( '#title' )
 	);
@@ -148,6 +149,24 @@ export const ProductNameSuggestions = () => {
 
 		updateProductName( suggestion.content );
 		setSuggestions( [] );
+
+		// Update product slug if product is a draft.
+		const currentProductData = productData();
+		if (
+			currentProductData.product_id !== null &&
+			currentProductData.publishing_status === 'draft'
+		) {
+			try {
+				updateProductSlug(
+					suggestion.content,
+					currentProductData.product_id
+				);
+			} catch ( e ) {
+				// Log silently if slug update fails.
+				/* eslint-disable-next-line no-console */
+				console.error( e );
+			}
+		}
 	};
 
 	const fetchProductSuggestions = async (
diff --git a/plugins/woo-ai/src/utils/get-post-id.ts b/plugins/woo-ai/src/utils/get-post-id.ts
index 66391a42fec..819fd8e3ac0 100644
--- a/plugins/woo-ai/src/utils/get-post-id.ts
+++ b/plugins/woo-ai/src/utils/get-post-id.ts
@@ -1,4 +1,6 @@
-export const getPostId = () =>
-	Number(
-		( document.querySelector( '#post_ID' ) as HTMLInputElement )?.value
-	);
+export const getPostId = (): number | null => {
+	const postIdEl: HTMLInputElement | null =
+		document.querySelector( '#post_ID' );
+
+	return postIdEl ? Number( postIdEl.value ) : null;
+};
diff --git a/plugins/woo-ai/src/utils/productData.ts b/plugins/woo-ai/src/utils/productData.ts
index 8b54ae3ebcb..672165af7ea 100644
--- a/plugins/woo-ai/src/utils/productData.ts
+++ b/plugins/woo-ai/src/utils/productData.ts
@@ -2,7 +2,7 @@
  * Internal dependencies
  */
 import { Attribute, ProductData } from './types';
-import { getTinyContent } from '../utils/tiny-tools';
+import { getTinyContent, getPostId } from '.';
 
 const isElementVisible = ( element: HTMLElement ) =>
 	! ( window.getComputedStyle( element ).display === 'none' );
@@ -104,6 +104,7 @@ const getProductType = () => {
 
 export const productData = (): ProductData => {
 	return {
+		product_id: getPostId(),
 		name: getProductName(),
 		categories: getCategories(),
 		tags: getTags(),
@@ -112,13 +113,12 @@ export const productData = (): ProductData => {
 		product_type: getProductType(),
 		is_downloadable: (
 			document.querySelector( '#_downloadable' ) as HTMLInputElement
-		 )?.checked
-			? 'Yes'
-			: 'No',
+		 )?.checked,
 		is_virtual: (
 			document.querySelector( '#_virtual' ) as HTMLInputElement
-		 )?.checked
-			? 'Yes'
-			: 'No',
+		 )?.checked,
+		publishing_status: (
+			document.querySelector( '#post_status' ) as HTMLInputElement
+		 )?.value,
 	};
 };
diff --git a/plugins/woo-ai/src/utils/recordTracksFactory.ts b/plugins/woo-ai/src/utils/recordTracksFactory.ts
index 71bffdde7ba..4fb68f2e8c8 100644
--- a/plugins/woo-ai/src/utils/recordTracksFactory.ts
+++ b/plugins/woo-ai/src/utils/recordTracksFactory.ts
@@ -3,9 +3,11 @@
  */
 import { recordEvent } from '@woocommerce/tracks';
 
-export const recordTracksFactory = < T = Record< string, string | number > >(
+export const recordTracksFactory = <
+	T = Record< string, string | number | null >
+>(
 	feature: string,
-	propertiesCallback: () => Record< string, string | number >
+	propertiesCallback: () => Record< string, string | number | null >
 ) => {
 	return ( name: string, properties?: T ) =>
 		recordEvent( `woo_ai_product_${ feature }_${ name }`, {
diff --git a/plugins/woo-ai/src/utils/types.ts b/plugins/woo-ai/src/utils/types.ts
index 14c6c18f709..43a61edd22f 100644
--- a/plugins/woo-ai/src/utils/types.ts
+++ b/plugins/woo-ai/src/utils/types.ts
@@ -4,14 +4,16 @@ export type Attribute = {
 };
 
 export type ProductData = {
+	product_id: number | null;
 	name: string;
 	description: string;
 	categories: string[];
 	tags: string[];
 	attributes: Attribute[];
 	product_type: string;
-	is_downloadable: string;
-	is_virtual: string;
+	is_downloadable: boolean;
+	is_virtual: boolean;
+	publishing_status: string;
 };
 
 export type ProductDataSuggestion = {