diff --git a/examples/vercel-ai-sdk-chat-app/package.json b/examples/vercel-ai-sdk-chat-app/package.json
index c0aed9cd..47a3e4c4 100644
--- a/examples/vercel-ai-sdk-chat-app/package.json
+++ b/examples/vercel-ai-sdk-chat-app/package.json
@@ -10,7 +10,7 @@
     "preview": "vite preview"
   },
   "dependencies": {
-    "@mem0/vercel-ai-provider": "^0.0.7",
+    "@mem0/vercel-ai-provider": "0.0.12",
     "@radix-ui/react-avatar": "^1.1.1",
     "@radix-ui/react-dialog": "^1.1.2",
     "@radix-ui/react-icons": "^1.3.1",
@@ -18,7 +18,7 @@
     "@radix-ui/react-scroll-area": "^1.2.0",
     "@radix-ui/react-select": "^2.1.2",
     "@radix-ui/react-slot": "^1.1.0",
-    "ai": "^3.4.31",
+    "ai": "4.1.42",
     "buffer": "^6.0.3",
     "class-variance-authority": "^0.7.0",
     "clsx": "^2.1.1",
diff --git a/examples/vercel-ai-sdk-chat-app/src/components/api-settings-popup.tsx b/examples/vercel-ai-sdk-chat-app/src/components/api-settings-popup.tsx
index 75cea86c..8a4eac39 100644
--- a/examples/vercel-ai-sdk-chat-app/src/components/api-settings-popup.tsx
+++ b/examples/vercel-ai-sdk-chat-app/src/components/api-settings-popup.tsx
@@ -5,7 +5,7 @@ import { Label } from "@/components/ui/label"
 import { Select, SelectContent, SelectItem, SelectTrigger, SelectValue } from "@/components/ui/select"
 import { Dialog, DialogContent, DialogHeader, DialogTitle, DialogFooter } from "@/components/ui/dialog"
 import GlobalContext from '@/contexts/GlobalContext'
-
+import { Provider } from '@/constants/messages'
 export default function ApiSettingsPopup(props: { isOpen: boolean, setIsOpen: Dispatch<SetStateAction<boolean>> }) {
   const {isOpen, setIsOpen} = props
   const [mem0ApiKey, setMem0ApiKey] = useState('')
@@ -15,7 +15,7 @@ export default function ApiSettingsPopup(props: { isOpen: boolean, setIsOpen: Di
 
   const handleSave = () => {
     // Here you would typically save the settings to your backend or local storage
-    selectorHandler(mem0ApiKey, providerApiKey, provider);
+    selectorHandler(mem0ApiKey, providerApiKey, provider as Provider);
     setIsOpen(false)
   }
 
diff --git a/examples/vercel-ai-sdk-chat-app/src/constants/messages.ts b/examples/vercel-ai-sdk-chat-app/src/constants/messages.ts
new file mode 100644
index 00000000..af3280a0
--- /dev/null
+++ b/examples/vercel-ai-sdk-chat-app/src/constants/messages.ts
@@ -0,0 +1,31 @@
+import { Message } from "@/types";
+
+export const WELCOME_MESSAGE: Message = {
+  id: "1",
+  content: "👋 Hi there! I'm your personal assistant. How can I help you today? 😊",
+  sender: "assistant",
+  timestamp: new Date().toLocaleTimeString(),
+};
+
+export const INVALID_CONFIG_MESSAGE: Message = {
+  id: "2",
+  content: "Invalid configuration. Please check your API keys, and add a user and try again.",
+  sender: "assistant",
+  timestamp: new Date().toLocaleTimeString(),
+};
+
+export const ERROR_MESSAGE: Message = {
+  id: "3",
+  content: "Something went wrong. Please try again.",
+  sender: "assistant",
+  timestamp: new Date().toLocaleTimeString(),
+};
+
+export const AI_MODELS = {
+  openai: "gpt-4o",
+  anthropic: "claude-3-haiku-20240307",
+  cohere: "command-r-plus",
+  groq: "gemma2-9b-it",
+} as const;
+
+export type Provider = keyof typeof AI_MODELS; 
\ No newline at end of file
diff --git a/examples/vercel-ai-sdk-chat-app/src/contexts/GlobalContext.tsx b/examples/vercel-ai-sdk-chat-app/src/contexts/GlobalContext.tsx
index 4f959b56..755ea829 100644
--- a/examples/vercel-ai-sdk-chat-app/src/contexts/GlobalContext.tsx
+++ b/examples/vercel-ai-sdk-chat-app/src/contexts/GlobalContext.tsx
@@ -1,281 +1,84 @@
 /* eslint-disable @typescript-eslint/no-explicit-any */
-import { createContext, useEffect, useState } from "react";
-import { createMem0, searchMemories } from "@mem0/vercel-ai-provider";
-import { LanguageModelV1Prompt, streamText } from "ai";
-import { Message, Memory, FileInfo } from "@/types";
-import { Buffer } from 'buffer';
+import { createContext } from 'react';
+import { Message, Memory, FileInfo } from '@/types';
+import { useAuth } from '@/hooks/useAuth';
+import { useChat } from '@/hooks/useChat';
+import { useFileHandler } from '@/hooks/useFileHandler';
+import { Provider } from '@/constants/messages';
 
-const GlobalContext = createContext<any>({});
-
-const WelcomeMessage: Message = {
-  id: "1",
-  content:
-    "👋 Hi there! I'm your personal assistant. How can I help you today? 😊",
-  sender: "assistant",
-  timestamp: new Date().toLocaleTimeString(),
-};
-
-const InvalidConfigMessage: Message = {
-  id: "2",
-  content:
-    "Invalid configuration. Please check your API keys, and add a user and try again.",
-  sender: "assistant",
-  timestamp: new Date().toLocaleTimeString(),
-};
-
-const SomethingWentWrongMessage: Message = {
-  id: "3",
-  content: "Something went wrong. Please try again.",
-  sender: "assistant",
-  timestamp: new Date().toLocaleTimeString(),
-};
-
-const models = {
-  "openai": "gpt-4o",
-  "anthropic": "claude-3-haiku-20240307",
-  "cohere": "command-r-plus",
-  "groq": "gemma2-9b-it"
+interface GlobalContextType {
+  selectedUser: string;
+  selectUserHandler: (user: string) => void;
+  clearUserHandler: () => void;
+  messages: Message[];
+  memories: Memory[];
+  handleSend: (content: string) => Promise<void>;
+  thinking: boolean;
+  selectedMem0Key: string;
+  selectedOpenAIKey: string;
+  selectedProvider: Provider;
+  selectorHandler: (mem0: string, openai: string, provider: Provider) => void;
+  clearConfiguration: () => void;
+  selectedFile: FileInfo | null;
+  setSelectedFile: (file: FileInfo | null) => void;
+  file: File | null;
+  setFile: (file: File | null) => void;
 }
 
-const getModel = (provider: string) => {
-  switch (provider) {
-    case "openai":
-      return models.openai;
-    case "anthropic":
-      return models.anthropic;
-    case "cohere":
-      return models.cohere;
-    case "groq":
-      return models.groq;
-    default:
-      return models.openai;
-  }
-}
+const GlobalContext = createContext<GlobalContextType>({} as GlobalContextType);
 
-const GlobalState = (props: any) => {
-  const [memories, setMemories] = useState<Memory[]>([]);
-  const [messages, setMessages] = useState<Message[]>([]);
-  const [selectedUser, setSelectedUser] = useState<string>("");
-  const [thinking, setThinking] = useState<boolean>(false);
-  const [selectedOpenAIKey, setSelectedOpenAIKey] = useState<string>("");
-  const [selectedMem0Key, setSelectedMem0Key] = useState<string>("");
-  const [selectedProvider, setSelectedProvider] = useState<string>("openai");
-  const [selectedFile, setSelectedFile] = useState<FileInfo | null>(null)
-  const [file, setFile] = useState<any>(null)
-
-  const mem0 = createMem0({
-    provider: selectedProvider,
+const GlobalState = (props: { children: React.ReactNode }) => {
+  const {
     mem0ApiKey: selectedMem0Key,
-    apiKey: selectedOpenAIKey,
+    openaiApiKey: selectedOpenAIKey,
+    provider: selectedProvider,
+    user: selectedUser,
+    setAuth: selectorHandler,
+    setUser: selectUserHandler,
+    clearAuth: clearConfiguration,
+    clearUser: clearUserHandler,
+  } = useAuth();
+
+  const {
+    selectedFile,
+    file,
+    fileData,
+    setSelectedFile,
+    handleFile,
+    clearFile,
+  } = useFileHandler();
+
+  const {
+    messages,
+    memories,
+    thinking,
+    sendMessage,
+  } = useChat({
+    user: selectedUser,
+    mem0ApiKey: selectedMem0Key,
+    openaiApiKey: selectedOpenAIKey,
+    provider: selectedProvider,
   });
 
-  const clearConfiguration = () => {
-    localStorage.removeItem("mem0ApiKey");
-    localStorage.removeItem("openaiApiKey");
-    localStorage.removeItem("provider");
-    setSelectedMem0Key("");
-    setSelectedOpenAIKey("");
-    setSelectedProvider("openai");
-    setSelectedUser("");
-    setMessages([WelcomeMessage]);
-    setMemories([]);
-    setFile(null);
-  };
-
-  const selectorHandler = (mem0: string, openai: string, provider: string) => {
-    setSelectedMem0Key(mem0);
-    setSelectedOpenAIKey(openai);
-    setSelectedProvider(provider);
-    localStorage.setItem("mem0ApiKey", mem0);
-    localStorage.setItem("openaiApiKey", openai);
-    localStorage.setItem("provider", provider);
-  };
-
-
-  useEffect(() => {
-    const mem0 = localStorage.getItem("mem0ApiKey");
-    const openai = localStorage.getItem("openaiApiKey");
-    const provider = localStorage.getItem("provider");
-    const user = localStorage.getItem("user");
-    if (mem0 && openai && provider) {
-      selectorHandler(mem0, openai, provider);
-    }
-    if (user) {
-      setSelectedUser(user);
-    }
-  }, []);
-
-  const selectUserHandler = (user: string) => {
-    setSelectedUser(user);
-    localStorage.setItem("user", user);
-  };
-
-  const clearUserHandler = () => {
-    setSelectedUser("");
-    setMemories([]);
-  };
-
-  const getMemories = async (messages: LanguageModelV1Prompt) => {
-    try {
-      const smemories = await searchMemories(messages, {
-        user_id: selectedUser || "",
-        mem0ApiKey: selectedMem0Key,
-      });
-
-      const newMemories = smemories.map((memory: any) => ({
-        id: memory.id,
-        content: memory.memory,
-        timestamp: memory.updated_at,
-        tags: memory.categories,
-      }));
-      setMemories(newMemories);
-    } catch (error) {
-      console.error("Error in getMemories:", error);
-    }
-  };
-
-  const handleSend = async (inputValue: string) => {
-    if (!inputValue.trim() && !file) return;
-    if (!selectedUser) {
-      const newMessage: Message = {
-        id: Date.now().toString(),
-        content: inputValue,
-        sender: "user",
-        timestamp: new Date().toLocaleTimeString(),
-      };
-      setMessages((prev) => [...prev, newMessage, InvalidConfigMessage]);
-      return;
-    }   
-
-    const userMessage: Message = {
-      id: Date.now().toString(),
-      content: inputValue,
-      sender: "user",
-      timestamp: new Date().toLocaleTimeString(),
-    };
-
-    let fileData;
+  const handleSend = async (content: string) => {
     if (file) {
-      if (file.type.startsWith("image/")) {
-        // Convert image to Base64
-        fileData = await convertToBase64(file);
-        userMessage.image = fileData;
-      } else if (file.type.startsWith("audio/")) {
-        // Convert audio to ArrayBuffer
-        fileData = await getFileBuffer(file);
-        userMessage.audio = fileData;
-      }
-    }
-
-    // Update the state with the new user message
-    setMessages((prev) => [...prev, userMessage]);
-    setThinking(true);
-
-    // Transform messages into the required format
-    const messagesForPrompt: LanguageModelV1Prompt = [];
-    messages.map((message) => {
-      const messageContent: any = {
-        role: message.sender,
-        content: [
-          {
-            type: "text",
-            text: message.content,
-          },
-        ],
-      };
-      if (message.image) {
-        messageContent.content.push({
-          type: "image",
-          image: message.image,
-        });
-      }
-      if (message.audio) {
-        messageContent.content.push({
-          type: 'file',
-          mimeType: 'audio/mpeg',
-          data: message.audio,
-        });
-      }
-      if(!message.audio) messagesForPrompt.push(messageContent);
-    });
-
-    const newMessage: any = {
-      role: "user",
-      content: [
-        {
-          type: "text",
-          text: inputValue,
-        },
-      ],
-    };
-    if (file) {
-      if (file.type.startsWith("image/")) {
-        newMessage.content.push({
-          type: "image",
-          image: userMessage.image,
-        });
-      } else if (file.type.startsWith("audio/")) {
-        newMessage.content.push({
-          type: 'file',
-          mimeType: 'audio/mpeg',
-          data: userMessage.audio,
-        });
-      }
-    }
-
-    messagesForPrompt.push(newMessage);
-    getMemories(messagesForPrompt);
-
-    setFile(null);
-    setSelectedFile(null);
-
-    try {
-      const { textStream } = await streamText({
-        model: mem0(getModel(selectedProvider), {
-          user_id: selectedUser || "",
-        }),
-        messages: messagesForPrompt,
+      await sendMessage(content, {
+        type: file.type,
+        data: fileData!,
       });
-
-      const assistantMessageId = Date.now() + 1;
-      const assistantMessage: Message = {
-        id: assistantMessageId.toString(),
-        content: "",
-        sender: "assistant",
-        timestamp: new Date().toLocaleTimeString(),
-      };
-
-      setMessages((prev) => [...prev, assistantMessage]);
-
-      // Stream the text part by part
-      for await (const textPart of textStream) {
-        assistantMessage.content += textPart;
-        setThinking(false);
-        setFile(null);
-        setSelectedFile(null);
-
-        setMessages((prev) =>
-          prev.map((msg) =>
-            msg.id === assistantMessageId.toString()
-              ? { ...msg, content: assistantMessage.content }
-              : msg
-          )
-        );
-      }
-
-      setThinking(false);
-    } catch (error) {
-      console.error("Error in handleSend:", error);
-      setMessages((prev) => [...prev, SomethingWentWrongMessage]);
-      setThinking(false);
-      setFile(null);
-      setSelectedFile(null);
+      clearFile();
+    } else {
+      await sendMessage(content);
     }
   };
 
-  useEffect(() => {
-    setMessages([WelcomeMessage]);
-  }, []);
+  const setFile = async (newFile: File | null) => {
+    if (newFile) {
+      await handleFile(newFile);
+    } else {
+      clearFile();
+    }
+  };
 
   return (
     <GlobalContext.Provider
@@ -295,7 +98,7 @@ const GlobalState = (props: any) => {
         selectedFile,
         setSelectedFile,
         file,
-        setFile
+        setFile,
       }}
     >
       {props.children}
@@ -304,21 +107,4 @@ const GlobalState = (props: any) => {
 };
 
 export default GlobalContext;
-export { GlobalState };
-
-
-const convertToBase64 = (file: File): Promise<string> => {
-  return new Promise((resolve, reject) => {
-      const reader = new FileReader();
-      reader.readAsDataURL(file);
-      reader.onload = () => resolve(reader.result as string); // Resolve with Base64 string
-      reader.onerror = error => reject(error); // Reject on error
-  });
-};
-
-async function getFileBuffer(file: any) {
-  const response = await fetch(file);
-  const arrayBuffer = await response.arrayBuffer();
-  const buffer = Buffer.from(arrayBuffer);
-  return buffer;
-}
\ No newline at end of file
+export { GlobalState };
\ No newline at end of file
diff --git a/examples/vercel-ai-sdk-chat-app/src/hooks/useAuth.ts b/examples/vercel-ai-sdk-chat-app/src/hooks/useAuth.ts
new file mode 100644
index 00000000..5687442c
--- /dev/null
+++ b/examples/vercel-ai-sdk-chat-app/src/hooks/useAuth.ts
@@ -0,0 +1,73 @@
+import { useState, useEffect } from 'react';
+import { Provider } from '@/constants/messages';
+
+interface UseAuthReturn {
+  mem0ApiKey: string;
+  openaiApiKey: string;
+  provider: Provider;
+  user: string;
+  setAuth: (mem0: string, openai: string, provider: Provider) => void;
+  setUser: (user: string) => void;
+  clearAuth: () => void;
+  clearUser: () => void;
+}
+
+export const useAuth = (): UseAuthReturn => {
+  const [mem0ApiKey, setMem0ApiKey] = useState<string>('');
+  const [openaiApiKey, setOpenaiApiKey] = useState<string>('');
+  const [provider, setProvider] = useState<Provider>('openai');
+  const [user, setUser] = useState<string>('');
+
+  useEffect(() => {
+    const mem0 = localStorage.getItem('mem0ApiKey');
+    const openai = localStorage.getItem('openaiApiKey');
+    const savedProvider = localStorage.getItem('provider') as Provider;
+    const savedUser = localStorage.getItem('user');
+
+    if (mem0 && openai && savedProvider) {
+      setAuth(mem0, openai, savedProvider);
+    }
+    if (savedUser) {
+      setUser(savedUser);
+    }
+  }, []);
+
+  const setAuth = (mem0: string, openai: string, provider: Provider) => {
+    setMem0ApiKey(mem0);
+    setOpenaiApiKey(openai);
+    setProvider(provider);
+    localStorage.setItem('mem0ApiKey', mem0);
+    localStorage.setItem('openaiApiKey', openai);
+    localStorage.setItem('provider', provider);
+  };
+
+  const clearAuth = () => {
+    localStorage.removeItem('mem0ApiKey');
+    localStorage.removeItem('openaiApiKey');
+    localStorage.removeItem('provider');
+    setMem0ApiKey('');
+    setOpenaiApiKey('');
+    setProvider('openai');
+  };
+
+  const updateUser = (user: string) => {
+    setUser(user);
+    localStorage.setItem('user', user);
+  };
+
+  const clearUser = () => {
+    localStorage.removeItem('user');
+    setUser('');
+  };
+
+  return {
+    mem0ApiKey,
+    openaiApiKey,
+    provider,
+    user,
+    setAuth,
+    setUser: updateUser,
+    clearAuth,
+    clearUser,
+  };
+}; 
\ No newline at end of file
diff --git a/examples/vercel-ai-sdk-chat-app/src/hooks/useChat.ts b/examples/vercel-ai-sdk-chat-app/src/hooks/useChat.ts
new file mode 100644
index 00000000..66eb7311
--- /dev/null
+++ b/examples/vercel-ai-sdk-chat-app/src/hooks/useChat.ts
@@ -0,0 +1,169 @@
+import { useState } from 'react';
+import { createMem0, getMemories } from '@mem0/vercel-ai-provider';
+import { LanguageModelV1Prompt, streamText } from 'ai';
+import { Message, Memory } from '@/types';
+import { WELCOME_MESSAGE, INVALID_CONFIG_MESSAGE, ERROR_MESSAGE, AI_MODELS, Provider } from '@/constants/messages';
+
+interface UseChatProps {
+  user: string;
+  mem0ApiKey: string;
+  openaiApiKey: string;
+  provider: Provider;
+}
+
+interface UseChatReturn {
+  messages: Message[];
+  memories: Memory[];
+  thinking: boolean;
+  sendMessage: (content: string, fileData?: { type: string; data: string | Buffer }) => Promise<void>;
+}
+
+interface MemoryResponse {
+  id: string;
+  memory: string;
+  updated_at: string;
+  categories: string[];
+}
+
+type MessageContent = 
+  | { type: 'text'; text: string }
+  | { type: 'image'; image: string }
+  | { type: 'file'; mimeType: string; data: Buffer };
+
+interface PromptMessage {
+  role: string;
+  content: MessageContent[];
+}
+
+export const useChat = ({ user, mem0ApiKey, openaiApiKey, provider }: UseChatProps): UseChatReturn => {
+  const [messages, setMessages] = useState<Message[]>([WELCOME_MESSAGE]);
+  const [memories, setMemories] = useState<Memory[]>([]);
+  const [thinking, setThinking] = useState(false);
+
+  const mem0 = createMem0({
+    provider,
+    mem0ApiKey,
+    apiKey: openaiApiKey,
+  });
+
+  const updateMemories = async (messages: LanguageModelV1Prompt) => {
+    try {
+      const fetchedMemories = await getMemories(messages, {
+        user_id: user,
+        mem0ApiKey,
+      });
+
+      const newMemories = fetchedMemories.map((memory: MemoryResponse) => ({
+        id: memory.id,
+        content: memory.memory,
+        timestamp: memory.updated_at,
+        tags: memory.categories,
+      }));
+      setMemories(newMemories);
+    } catch (error) {
+      console.error('Error in getMemories:', error);
+    }
+  };
+
+  const formatMessagesForPrompt = (messages: Message[]): PromptMessage[] => {
+    return messages.map((message) => {
+      const messageContent: MessageContent[] = [
+        { type: 'text', text: message.content }
+      ];
+
+      if (message.image) {
+        messageContent.push({
+          type: 'image',
+          image: message.image,
+        });
+      }
+
+      if (message.audio) {
+        messageContent.push({
+          type: 'file',
+          mimeType: 'audio/mpeg',
+          data: message.audio as Buffer,
+        });
+      }
+
+      return {
+        role: message.sender,
+        content: messageContent,
+      };
+    });
+  };
+
+  const sendMessage = async (content: string, fileData?: { type: string; data: string | Buffer }) => {
+    if (!content.trim() && !fileData) return;
+
+    if (!user) {
+      const newMessage: Message = {
+        id: Date.now().toString(),
+        content,
+        sender: 'user',
+        timestamp: new Date().toLocaleTimeString(),
+      };
+      setMessages((prev) => [...prev, newMessage, INVALID_CONFIG_MESSAGE]);
+      return;
+    }
+
+    const userMessage: Message = {
+      id: Date.now().toString(),
+      content,
+      sender: 'user',
+      timestamp: new Date().toLocaleTimeString(),
+      ...(fileData?.type.startsWith('image/') && { image: fileData.data.toString() }),
+      ...(fileData?.type.startsWith('audio/') && { audio: fileData.data as Buffer }),
+    };
+
+    setMessages((prev) => [...prev, userMessage]);
+    setThinking(true);
+
+    const messagesForPrompt = formatMessagesForPrompt([...messages, userMessage]);
+    await updateMemories(messagesForPrompt as LanguageModelV1Prompt);
+
+    try {
+      const { textStream } = await streamText({
+        model: mem0(AI_MODELS[provider], {
+          user_id: user,
+        }),
+        messages: messagesForPrompt as LanguageModelV1Prompt,
+      });
+
+      const assistantMessageId = Date.now() + 1;
+      const assistantMessage: Message = {
+        id: assistantMessageId.toString(),
+        content: '',
+        sender: 'assistant',
+        timestamp: new Date().toLocaleTimeString(),
+      };
+
+      setMessages((prev) => [...prev, assistantMessage]);
+
+      for await (const textPart of textStream) {
+        assistantMessage.content += textPart;
+        setThinking(false);
+
+        setMessages((prev) =>
+          prev.map((msg) =>
+            msg.id === assistantMessageId.toString()
+              ? { ...msg, content: assistantMessage.content }
+              : msg
+          )
+        );
+      }
+    } catch (error) {
+      console.error('Error in sendMessage:', error);
+      setMessages((prev) => [...prev, ERROR_MESSAGE]);
+    } finally {
+      setThinking(false);
+    }
+  };
+
+  return {
+    messages,
+    memories,
+    thinking,
+    sendMessage,
+  };
+}; 
\ No newline at end of file
diff --git a/examples/vercel-ai-sdk-chat-app/src/hooks/useFileHandler.ts b/examples/vercel-ai-sdk-chat-app/src/hooks/useFileHandler.ts
new file mode 100644
index 00000000..3353a8cf
--- /dev/null
+++ b/examples/vercel-ai-sdk-chat-app/src/hooks/useFileHandler.ts
@@ -0,0 +1,45 @@
+import { useState } from 'react';
+import { FileInfo } from '@/types';
+import { convertToBase64, getFileBuffer } from '@/utils/fileUtils';
+
+interface UseFileHandlerReturn {
+  selectedFile: FileInfo | null;
+  file: File | null;
+  fileData: string | Buffer | null;
+  setSelectedFile: (file: FileInfo | null) => void;
+  handleFile: (file: File) => Promise<void>;
+  clearFile: () => void;
+}
+
+export const useFileHandler = (): UseFileHandlerReturn => {
+  const [selectedFile, setSelectedFile] = useState<FileInfo | null>(null);
+  const [file, setFile] = useState<File | null>(null);
+  const [fileData, setFileData] = useState<string | Buffer | null>(null);
+
+  const handleFile = async (file: File) => {
+    setFile(file);
+    
+    if (file.type.startsWith('image/')) {
+      const base64Data = await convertToBase64(file);
+      setFileData(base64Data);
+    } else if (file.type.startsWith('audio/')) {
+      const bufferData = await getFileBuffer(file);
+      setFileData(bufferData);
+    }
+  };
+
+  const clearFile = () => {
+    setSelectedFile(null);
+    setFile(null);
+    setFileData(null);
+  };
+
+  return {
+    selectedFile,
+    file,
+    fileData,
+    setSelectedFile,
+    handleFile,
+    clearFile,
+  };
+}; 
\ No newline at end of file
diff --git a/examples/vercel-ai-sdk-chat-app/src/utils/fileUtils.ts b/examples/vercel-ai-sdk-chat-app/src/utils/fileUtils.ts
new file mode 100644
index 00000000..cd86f807
--- /dev/null
+++ b/examples/vercel-ai-sdk-chat-app/src/utils/fileUtils.ts
@@ -0,0 +1,16 @@
+import { Buffer } from 'buffer';
+
+export const convertToBase64 = (file: File): Promise<string> => {
+  return new Promise((resolve, reject) => {
+    const reader = new FileReader();
+    reader.readAsDataURL(file);
+    reader.onload = () => resolve(reader.result as string);
+    reader.onerror = error => reject(error);
+  });
+};
+
+export const getFileBuffer = async (file: File): Promise<Buffer> => {
+  const response = await fetch(URL.createObjectURL(file));
+  const arrayBuffer = await response.arrayBuffer();
+  return Buffer.from(arrayBuffer);
+}; 
\ No newline at end of file