diff --git a/.github/ai-automation/ai-issue-processing-system-prompt.md b/.github/ai-automation/ai-issue-processing-system-prompt.md
index 20548c40..cfa5d0ba 100644
--- a/.github/ai-automation/ai-issue-processing-system-prompt.md
+++ b/.github/ai-automation/ai-issue-processing-system-prompt.md
@@ -68,4 +68,8 @@ The `labels` array should contain strings representing the recommended label nam
 - Do not make assumptions beyond what is clearly stated or strongly implied
 - Ensure all recommended labels are meaningful and actionable
 - If uncertain about a label, exclude it rather than guessing
-- An issue may have multiple type labels and multiple area labels if appropriate
+
+## [📌] Additional Guidelines
+
+- Issues may warrant multiple type labels and/or multiple area labels when clearly justified by the content
+- **Test Plans Label Usage**: Only apply `Test Plans 🧪` when the issue directly relates to test management features, test case authoring, test suites, or the Test Plans API itself—not merely because testing or writing tests is mentioned as part of standard development practice
diff --git a/.github/workflows/ai-issue-processing.yml b/.github/workflows/ai-issue-processing.yml
index f7669f9e..9dd70d95 100644
--- a/.github/workflows/ai-issue-processing.yml
+++ b/.github/workflows/ai-issue-processing.yml
@@ -39,9 +39,9 @@ jobs:
           # Parse the JSON response to extract labels
           LABELS=$(echo "$AI_RESPONSE" | python3 -c "import sys, json; print(' '.join([f'--add-label \"{label}\"' for label in json.load(sys.stdin)['labels']]))")
 
-          # Add the recommended labels and remove the ai-issue-processing label
+          # Add the recommended labels, always add "Needs Review 👓", and remove the ai-issue-processing label
           if [ -n "$LABELS" ]; then
-            eval gh issue edit $ISSUE_NUMBER $LABELS --remove-label "ai-issue-processing" --repo ${{ github.repository }}
+            eval gh issue edit $ISSUE_NUMBER $LABELS --add-label "Needs Review 👓" --remove-label "ai-issue-processing" --repo ${{ github.repository }}
           else
-            gh issue edit $ISSUE_NUMBER --remove-label "ai-issue-processing" --repo ${{ github.repository }}
+            gh issue edit $ISSUE_NUMBER --add-label "Needs Review 👓" --remove-label "ai-issue-processing" --repo ${{ github.repository }}
           fi