diff --git a/packages/react/__tests__/__snapshots__/PublicAPI-test.js.snap b/packages/react/__tests__/__snapshots__/PublicAPI-test.js.snap
index 638c99b2d459..6204f4abaa9e 100644
--- a/packages/react/__tests__/__snapshots__/PublicAPI-test.js.snap
+++ b/packages/react/__tests__/__snapshots__/PublicAPI-test.js.snap
@@ -6830,6 +6830,9 @@ Map {
       "className": Object {
         "type": "string",
       },
+      "decorator": Object {
+        "type": "node",
+      },
       "defaultValue": Object {
         "type": "any",
       },
@@ -6878,9 +6881,7 @@ Map {
         ],
         "type": "oneOf",
       },
-      "slug": Object {
-        "type": "node",
-      },
+      "slug": [Function],
       "warn": Object {
         "type": "bool",
       },
diff --git a/packages/react/src/components/FluidSelect/FluidSelect.stories.js b/packages/react/src/components/FluidSelect/FluidSelect.stories.js
index 9c304367786f..633e9308ab08 100644
--- a/packages/react/src/components/FluidSelect/FluidSelect.stories.js
+++ b/packages/react/src/components/FluidSelect/FluidSelect.stories.js
@@ -14,7 +14,10 @@ import {
   ToggletipButton,
   ToggletipContent,
 } from '../Toggletip';
-import { Information } from '@carbon/icons-react';
+import Button from '../Button';
+import { AILabel, AILabelContent, AILabelActions } from '../AILabel';
+import { IconButton } from '../IconButton';
+import { Information, View, FolderOpen, Folders } from '@carbon/icons-react';
 import mdx from './FluidSelect.mdx';
 
 export default {
@@ -113,6 +116,52 @@ export const Default = () => (
   </div>
 );
 
+const aiLabel = (
+  <AILabel className="ai-label-container">
+    <AILabelContent>
+      <div>
+        <p className="secondary">AI Explained</p>
+        <h1>84%</h1>
+        <p className="secondary bold">Confidence score</p>
+        <p className="secondary">
+          Lorem ipsum dolor sit amet, di os consectetur adipiscing elit, sed do
+          eiusmod tempor incididunt ut fsil labore et dolore magna aliqua.
+        </p>
+        <hr />
+        <p className="secondary">Model type</p>
+        <p className="bold">Foundation model</p>
+      </div>
+      <AILabelActions>
+        <IconButton kind="ghost" label="View">
+          <View />
+        </IconButton>
+        <IconButton kind="ghost" label="Open Folder">
+          <FolderOpen />
+        </IconButton>
+        <IconButton kind="ghost" label="Folders">
+          <Folders />
+        </IconButton>
+        <Button>View details</Button>
+      </AILabelActions>
+    </AILabelContent>
+  </AILabel>
+);
+
+export const withAILabel = () => (
+  <div style={{ width: 400 }}>
+    <FluidSelect id="select-1" labelText="Select an option" decorator={aiLabel}>
+      <SelectItem value="" text="" />
+      <SelectItem
+        value="An example option that is really long to show what should be done to handle long text"
+        text="An example option that is really long to show what should be done to handle long text"
+      />
+      <SelectItem value="Option 2" text="Option 2" />
+      <SelectItem value="Option 3" text="Option 3" />
+      <SelectItem value="Option 4" text="Option 4" />
+    </FluidSelect>
+  </div>
+);
+
 export const Playground = (args) => (
   <div style={{ width: args.playgroundWidth }}>
     <FluidSelect {...args} id="select-1">
diff --git a/packages/react/src/components/Form/Form.stories.js b/packages/react/src/components/Form/Form.stories.js
index 506a6fe1f75e..c80a3339a377 100644
--- a/packages/react/src/components/Form/Form.stories.js
+++ b/packages/react/src/components/Form/Form.stories.js
@@ -365,7 +365,7 @@ export const withAILabel = (args) => {
             id="select-1"
             labelText="Select an option"
             helperText="Optional helper text"
-            slug={aiLabel}
+            decorator={aiLabel}
             {...rest}>
             <SelectItem value="" text="" />
             <SelectItem
@@ -476,7 +476,7 @@ export const withAILabel = (args) => {
           />
         </div>
         <div style={{ display: 'flex' }}>
-          <FluidSelect slug={aiLabel} {...rest} id="select-2">
+          <FluidSelect decorator={aiLabel} {...rest} id="select-2">
             <SelectItem value="" text="" />
             <SelectItem value="option-1" text="Option 1" />
             <SelectItem value="option-2" text="Option 2" />
diff --git a/packages/react/src/components/Select/Select.stories.js b/packages/react/src/components/Select/Select.stories.js
index 0177dc80ac1f..baf83ad3a3ac 100644
--- a/packages/react/src/components/Select/Select.stories.js
+++ b/packages/react/src/components/Select/Select.stories.js
@@ -17,6 +17,7 @@ import { AILabel, AILabelContent, AILabelActions } from '../AILabel';
 import { IconButton } from '../IconButton';
 import { View, FolderOpen, Folders } from '@carbon/icons-react';
 import mdx from './Select.mdx';
+import { Tooltip } from '../Tooltip';
 
 export default {
   title: 'Components/Select',
@@ -166,12 +167,12 @@ const aiLabel = (
 );
 
 export const withAILabel = () => (
-  <div style={{ width: 400 }}>
+  <div>
     <Select
       id="select-1"
       labelText="Select an option"
       helperText="Optional helper text"
-      slug={aiLabel}>
+      decorator={aiLabel}>
       <SelectItem value="" text="" />
       <SelectItem
         value="An example option that is really long to show what should be done to handle long text"
diff --git a/packages/react/src/components/Select/Select.tsx b/packages/react/src/components/Select/Select.tsx
index 2346e9109de6..c7d556d400ec 100644
--- a/packages/react/src/components/Select/Select.tsx
+++ b/packages/react/src/components/Select/Select.tsx
@@ -42,6 +42,11 @@ interface SelectProps
    */
   className?: string;
 
+  /**
+   * **Experimental**: Provide a `decorator` component to be rendered inside the `Select` component
+   */
+  decorator?: ReactNode;
+
   /**
    * Optionally provide the default value of the `<select>`
    */
@@ -118,6 +123,7 @@ interface SelectProps
   size?: 'sm' | 'md' | 'lg';
 
   /**
+   * @deprecated please use decorator instead.
    * **Experimental**: Provide a `Slug` component to be rendered inside the `Dropdown` component
    */
   slug?: ReactNode;
@@ -136,6 +142,7 @@ interface SelectProps
 const Select = React.forwardRef(function Select(
   {
     className,
+    decorator,
     id,
     inline = false,
     labelText = 'Select',
@@ -176,6 +183,7 @@ const Select = React.forwardRef(function Select(
     [`${prefix}--select--fluid--invalid`]: isFluid && invalid,
     [`${prefix}--select--fluid--focus`]: isFluid && isFocused,
     [`${prefix}--select--slug`]: slug,
+    [`${prefix}--select--decorator`]: decorator,
   });
   const labelClasses = classNames(`${prefix}--label`, {
     [`${prefix}--visually-hidden`]: hideLabel,
@@ -246,12 +254,20 @@ const Select = React.forwardRef(function Select(
     },
   };
 
-  // Slug is always size `mini`
-  let normalizedSlug;
-  if (slug && slug['type']?.displayName === 'AILabel') {
-    normalizedSlug = React.cloneElement(slug as React.ReactElement<any>, {
-      size: 'mini',
-    });
+  // AILabel always size `mini`
+  let normalizedDecorator = React.isValidElement(slug ?? decorator)
+    ? (slug ?? decorator)
+    : null;
+  if (
+    normalizedDecorator &&
+    normalizedDecorator['type']?.displayName === 'AILabel'
+  ) {
+    normalizedDecorator = React.cloneElement(
+      normalizedDecorator as React.ReactElement<any>,
+      {
+        size: 'mini',
+      }
+    );
   }
 
   const input = (() => {
@@ -308,7 +324,15 @@ const Select = React.forwardRef(function Select(
             onFocus={handleFocus}
             onBlur={handleFocus}>
             {input}
-            {normalizedSlug}
+            {slug ? (
+              normalizedDecorator
+            ) : decorator ? (
+              <div className={`${prefix}--select__inner-wrapper--decorator`}>
+                {normalizedDecorator}
+              </div>
+            ) : (
+              ''
+            )}
             {isFluid && <hr className={`${prefix}--select__divider`} />}
             {isFluid && error ? error : null}
           </div>
@@ -332,6 +356,11 @@ Select.propTypes = {
    */
   className: PropTypes.string,
 
+  /**
+   * **Experimental**: Provide a decorator component to be rendered inside the `Select` component
+   */
+  decorator: PropTypes.node,
+
   /**
    * Optionally provide the default value of the `<select>`
    */
@@ -410,11 +439,10 @@ Select.propTypes = {
    */
   size: PropTypes.oneOf(['sm', 'md', 'lg']),
 
-  /**
-   * **Experimental**: Provide a `Slug` component to be rendered inside the `Select` component
-   */
-  slug: PropTypes.node,
-
+  slug: deprecate(
+    PropTypes.node,
+    'The `slug` prop has been deprecated and will be removed in the next major version. Use the decorator prop instead.'
+  ),
   /**
    * Specify whether the control is currently in warning state
    */
diff --git a/packages/react/src/components/Select/__tests__/Select-test.js b/packages/react/src/components/Select/__tests__/Select-test.js
index d146a59ed08c..f68bf82b5a2d 100644
--- a/packages/react/src/components/Select/__tests__/Select-test.js
+++ b/packages/react/src/components/Select/__tests__/Select-test.js
@@ -242,6 +242,7 @@ describe('Select', () => {
     });
 
     it('should respect slug prop', () => {
+      const spy = jest.spyOn(console, 'warn').mockImplementation(() => {});
       const { container } = render(
         <Select id="select" labelText="Select" slug={<AILabel />} />
       );
@@ -249,6 +250,17 @@ describe('Select', () => {
       expect(container.firstChild.firstChild).toHaveClass(
         `${prefix}--select--slug`
       );
+      spy.mockRestore();
+    });
+
+    it('should respect decorator prop', () => {
+      const { container } = render(
+        <Select id="select" labelText="Select" decorator={<AILabel />} />
+      );
+
+      expect(container.firstChild.firstChild).toHaveClass(
+        `${prefix}--select--decorator`
+      );
     });
   });
 
diff --git a/packages/styles/scss/components/fluid-select/_fluid-select.scss b/packages/styles/scss/components/fluid-select/_fluid-select.scss
index a2e8e7ca7a75..b9702ca02b7c 100644
--- a/packages/styles/scss/components/fluid-select/_fluid-select.scss
+++ b/packages/styles/scss/components/fluid-select/_fluid-select.scss
@@ -201,10 +201,14 @@
   }
 
   // AILabel styles
+  .#{$prefix}--select--fluid
+    .#{$prefix}--select--decorator
+    .#{$prefix}--select__inner-wrapper--decorator
+    > *,
   .#{$prefix}--select--fluid .#{$prefix}--select--slug .#{$prefix}--ai-label,
   .#{$prefix}--select--fluid .#{$prefix}--select--slug .#{$prefix}--slug {
     inset-block-start: convert.to-rem(42px);
-    inset-inline-end: $spacing-08;
+    inset-inline-end: $spacing-09;
   }
 
   .#{$prefix}--select--fluid
diff --git a/packages/styles/scss/components/select/_select.scss b/packages/styles/scss/components/select/_select.scss
index 3632bfd885f2..614f80415190 100644
--- a/packages/styles/scss/components/select/_select.scss
+++ b/packages/styles/scss/components/select/_select.scss
@@ -283,6 +283,9 @@
 
   $divider-width: 1px;
 
+  .#{$prefix}--select--decorator
+    .#{$prefix}--select__inner-wrapper--decorator
+    > *,
   .#{$prefix}--select--slug .#{$prefix}--ai-label,
   .#{$prefix}--select--slug .#{$prefix}--slug {
     position: absolute;
@@ -292,6 +295,12 @@
     transform: translateY(-50%);
   }
 
+  .#{$prefix}--select--decorator
+    .#{$prefix}--select__inner-wrapper--decorator
+    > *::after,
+  .#{$prefix}--select--decorator
+    .#{$prefix}--select__inner-wrapper--decorator
+    > *::before,
   .#{$prefix}--select--slug .#{$prefix}--ai-label::after,
   .#{$prefix}--select--slug .#{$prefix}--ai-label::before,
   .#{$prefix}--select--slug .#{$prefix}--slug::after,
@@ -303,48 +312,92 @@
     inline-size: convert.to-rem(1px);
   }
 
+  .#{$prefix}--select--decorator
+    .#{$prefix}--select__inner-wrapper--decorator
+    > *::before,
   .#{$prefix}--select--slug .#{$prefix}--ai-label::before,
   .#{$prefix}--select--slug .#{$prefix}--slug::before {
     display: none;
     inset-inline-start: calc(-#{$spacing-03} - #{$divider-width});
   }
 
+  .#{$prefix}--select--decorator
+    .#{$prefix}--select__inner-wrapper--decorator
+    > *::after,
   .#{$prefix}--select--slug .#{$prefix}--ai-label::after,
   .#{$prefix}--select--slug .#{$prefix}--slug::after {
     display: block;
+    inset-block-start: 0;
     inset-inline-end: calc(-#{$spacing-03} - #{$divider-width});
   }
 
+  .#{$prefix}--select--decorator
+    .#{$prefix}--select__inner-wrapper--decorator
+    > .#{$prefix}--ai-label--revert::before,
+  .#{$prefix}--select--slug .#{$prefix}--ai-label--revert::before,
+  .#{$prefix}--select--slug .#{$prefix}--slug--revert::before {
+    inset-block-start: 0.5rem;
+    inset-inline-start: 0;
+  }
+
+  .#{$prefix}--select--decorator
+    .#{$prefix}--select__inner-wrapper--decorator
+    > .#{$prefix}--ai-label--revert,
+  .#{$prefix}--select--slug .#{$prefix}--ai-label--revert {
+    inset-inline-end: convert.to-rem(41px);
+  }
+
+  .#{$prefix}--select--decorator .#{$prefix}--ai-label--revert::after,
   .#{$prefix}--select--slug .#{$prefix}--ai-label--revert::after,
   .#{$prefix}--select--slug .#{$prefix}--slug--revert::after {
     inset-block-start: convert.to-rem(8px);
-    inset-inline-end: convert.to-rem(-1px);
+    inset-inline-end: -($divider-width);
   }
 
-  .#{$prefix}--select--slug
-    .#{$prefix}--select-input:has(~ .#{$prefix}--ai-label):not(
-      :has(~ .#{$prefix}--ai-label--revert)
+  .#{$prefix}--select--decorator
+    .#{$prefix}--select-input:has(
+      ~ .#{$prefix}--select__inner-wrapper--decorator
     ),
   .#{$prefix}--select--slug
-    .#{$prefix}--select-input:has(~ .#{$prefix}--slug):not(
-      :has(~ .#{$prefix}--slug--revert)
-    ) {
-    @include ai-gradient;
-
+    .#{$prefix}--select-input:has(~ .#{$prefix}--ai-label),
+  .#{$prefix}--select--slug .#{$prefix}--select-input:has(~ .#{$prefix}--slug) {
     padding-inline-end: $spacing-10;
   }
 
+  .#{$prefix}--select--decorator:has(.#{$prefix}--select__invalid-icon)
+    .#{$prefix}--select-input:has(
+      ~ .#{$prefix}--select__inner-wrapper--decorator
+    ),
   .#{$prefix}--select--slug:has(.#{$prefix}--select__invalid-icon)
+    .#{$prefix}--select-input:has(~ .#{$prefix}--ai-label),
+  .#{$prefix}--select--slug:has(.#{$prefix}--select__invalid-icon)
+    .#{$prefix}--select-input:has(~ .#{$prefix}--slug) {
+    padding-inline-end: $spacing-12;
+  }
+
+  .#{$prefix}--select--decorator
+    .#{$prefix}--select-input:has(
+      ~ .#{$prefix}--select__inner-wrapper--decorator .#{$prefix}--ai-label
+    ):not(
+      :has(
+          ~ .#{$prefix}--select__inner-wrapper--decorator
+            .#{$prefix}--ai-label--revert
+        )
+    ),
+  .#{$prefix}--select--slug
     .#{$prefix}--select-input:has(~ .#{$prefix}--ai-label):not(
       :has(~ .#{$prefix}--ai-label--revert)
     ),
-  .#{$prefix}--select--slug:has(.#{$prefix}--select__invalid-icon)
+  .#{$prefix}--select--slug
     .#{$prefix}--select-input:has(~ .#{$prefix}--slug):not(
       :has(~ .#{$prefix}--slug--revert)
     ) {
-    padding-inline-end: $spacing-12;
+    @include ai-gradient;
   }
 
+  .#{$prefix}--select--decorator:has(.#{$prefix}--select__invalid-icon)
+    .#{$prefix}--select__inner-wrapper--decorator
+    > *::before,
   .#{$prefix}--select--slug:has(.#{$prefix}--select__invalid-icon)
     .#{$prefix}--ai-label::before,
   .#{$prefix}--select--slug:has(.#{$prefix}--select__invalid-icon)
@@ -352,6 +405,10 @@
     display: block;
   }
 
+  .#{$prefix}--select--decorator
+    .#{$prefix}--select-input__wrapper
+    .#{$prefix}--select-input
+    ~ .#{$prefix}--select__invalid-icon,
   .#{$prefix}--select--slug
     .#{$prefix}--select-input__wrapper[data-invalid]
     .#{$prefix}--select-input