diff --git a/x-pack/test_serverless/api_integration/test_suites/observability/ai_assistant/tests/knowledge_base/knowledge_base.spec.ts b/x-pack/test_serverless/api_integration/test_suites/observability/ai_assistant/tests/knowledge_base/knowledge_base.spec.ts
index 20ccce8203ce5..08b4a986d815b 100644
--- a/x-pack/test_serverless/api_integration/test_suites/observability/ai_assistant/tests/knowledge_base/knowledge_base.spec.ts
+++ b/x-pack/test_serverless/api_integration/test_suites/observability/ai_assistant/tests/knowledge_base/knowledge_base.spec.ts
@@ -21,10 +21,7 @@ export default function ApiTest({ getService }: FtrProviderContext) {
   const es = getService('es');
   const observabilityAIAssistantAPIClient = getService('observabilityAIAssistantAPIClient');
 
-  describe('Knowledge base', function () {
-    // Fails on MKI: https://github.com/elastic/kibana/issues/205581
-    this.tags(['failsOnMKI']);
-
+  describe('Knowledge base', () => {
     before(async () => {
       await createKnowledgeBaseModel(ml);
 
diff --git a/x-pack/test_serverless/api_integration/test_suites/observability/ai_assistant/tests/knowledge_base/knowledge_base_setup.spec.ts b/x-pack/test_serverless/api_integration/test_suites/observability/ai_assistant/tests/knowledge_base/knowledge_base_setup.spec.ts
index f55bee931fc1f..0ba8f655c8ad1 100644
--- a/x-pack/test_serverless/api_integration/test_suites/observability/ai_assistant/tests/knowledge_base/knowledge_base_setup.spec.ts
+++ b/x-pack/test_serverless/api_integration/test_suites/observability/ai_assistant/tests/knowledge_base/knowledge_base_setup.spec.ts
@@ -22,13 +22,8 @@ export default function ApiTest({ getService }: FtrProviderContext) {
   const es = getService('es');
   const observabilityAIAssistantAPIClient = getService('observabilityAIAssistantAPIClient');
 
-  describe('/internal/observability_ai_assistant/kb/setup', function () {
-    before(async () => {
-      await deleteKnowledgeBaseModel(ml).catch(() => {});
-      await deleteInferenceEndpoint({ es }).catch(() => {});
-    });
-
-    it('returns empty object when successful', async () => {
+  describe('/internal/observability_ai_assistant/kb/setup', () => {
+    it('returns model info when successful', async () => {
       await createKnowledgeBaseModel(ml);
       const res = await observabilityAIAssistantAPIClient
         .slsAdmin({
@@ -48,7 +43,7 @@ export default function ApiTest({ getService }: FtrProviderContext) {
       await deleteInferenceEndpoint({ es });
     });
 
-    it('returns bad request if model cannot be installed', async () => {
+    it('returns error message if model is not deployed', async () => {
       const res = await observabilityAIAssistantAPIClient
         .slsAdmin({
           endpoint: `POST ${KNOWLEDGE_BASE_SETUP_API_URL}`,
@@ -64,6 +59,9 @@ export default function ApiTest({ getService }: FtrProviderContext) {
       expect(res.body.message).to.include.string(
         'No known trained model with model_id [pt_tiny_elser]'
       );
+
+      // @ts-expect-error
+      expect(res.body.statusCode).to.be(500);
     });
 
     describe('security roles and access privileges', () => {
diff --git a/x-pack/test_serverless/api_integration/test_suites/observability/ai_assistant/tests/knowledge_base/knowledge_base_status.spec.ts b/x-pack/test_serverless/api_integration/test_suites/observability/ai_assistant/tests/knowledge_base/knowledge_base_status.spec.ts
index 11c039a40411b..8d05930a56365 100644
--- a/x-pack/test_serverless/api_integration/test_suites/observability/ai_assistant/tests/knowledge_base/knowledge_base_status.spec.ts
+++ b/x-pack/test_serverless/api_integration/test_suites/observability/ai_assistant/tests/knowledge_base/knowledge_base_status.spec.ts
@@ -12,9 +12,7 @@ import {
   TINY_ELSER,
   deleteKnowledgeBaseModel,
 } from '@kbn/test-suites-xpack/observability_ai_assistant_api_integration/tests/knowledge_base/helpers';
-import { AI_ASSISTANT_KB_INFERENCE_ID } from '@kbn/observability-ai-assistant-plugin/server/service/inference_endpoint';
 import { FtrProviderContext } from '../../common/ftr_provider_context';
-import { KNOWLEDGE_BASE_SETUP_API_URL } from './knowledge_base_setup.spec';
 
 const KNOWLEDGE_BASE_STATUS_API_URL = '/internal/observability_ai_assistant/kb/status';
 
@@ -23,15 +21,12 @@ export default function ApiTest({ getService }: FtrProviderContext) {
   const es = getService('es');
   const observabilityAIAssistantAPIClient = getService('observabilityAIAssistantAPIClient');
 
-  describe('/internal/observability_ai_assistant/kb/status', function () {
-    // Fails on MKI: https://github.com/elastic/kibana/issues/205677
-    this.tags(['failsOnMKI']);
-
-    before(async () => {
+  describe('/internal/observability_ai_assistant/kb/status', () => {
+    beforeEach(async () => {
       await createKnowledgeBaseModel(ml);
       await observabilityAIAssistantAPIClient
         .slsAdmin({
-          endpoint: `POST ${KNOWLEDGE_BASE_SETUP_API_URL}`,
+          endpoint: 'POST /internal/observability_ai_assistant/kb/setup',
           params: {
             query: {
               model_id: TINY_ELSER.id,
@@ -41,25 +36,39 @@ export default function ApiTest({ getService }: FtrProviderContext) {
         .expect(200);
     });
 
-    after(async () => {
-      await deleteKnowledgeBaseModel(ml);
-      await deleteInferenceEndpoint({ es, name: AI_ASSISTANT_KB_INFERENCE_ID }).catch((err) => {});
+    afterEach(async () => {
+      await deleteKnowledgeBaseModel(ml).catch((e) => {});
+      await deleteInferenceEndpoint({ es }).catch((e) => {});
     });
 
     it('returns correct status after knowledge base is setup', async () => {
+      const res = await observabilityAIAssistantAPIClient
+        .slsEditor({ endpoint: `GET ${KNOWLEDGE_BASE_STATUS_API_URL}` })
+        .expect(200);
+
+      expect(res.body.ready).to.be(true);
+      expect(res.body.enabled).to.be(true);
+      expect(res.body.endpoint?.service_settings?.model_id).to.eql(TINY_ELSER.id);
+    });
+
+    it('returns correct status after model is deleted', async () => {
+      await deleteKnowledgeBaseModel(ml);
+
       const res = await observabilityAIAssistantAPIClient
         .slsEditor({
           endpoint: `GET ${KNOWLEDGE_BASE_STATUS_API_URL}`,
         })
         .expect(200);
 
+      expect(res.body.ready).to.be(false);
       expect(res.body.enabled).to.be(true);
-      expect(res.body.ready).to.be(true);
-      expect(res.body.endpoint?.service_settings?.model_id).to.eql(TINY_ELSER.id);
+      expect(res.body.errorMessage).to.include.string(
+        'No known trained model with model_id [pt_tiny_elser]'
+      );
     });
 
-    it('returns correct status after elser is stopped', async () => {
-      await deleteInferenceEndpoint({ es, name: AI_ASSISTANT_KB_INFERENCE_ID });
+    it('returns correct status after inference endpoint is deleted', async () => {
+      await deleteInferenceEndpoint({ es });
 
       const res = await observabilityAIAssistantAPIClient
         .slsEditor({
@@ -67,8 +76,11 @@ export default function ApiTest({ getService }: FtrProviderContext) {
         })
         .expect(200);
 
-      expect(res.body.enabled).to.be(true);
       expect(res.body.ready).to.be(false);
+      expect(res.body.enabled).to.be(true);
+      expect(res.body.errorMessage).to.include.string(
+        'Inference endpoint not found [obs_ai_assistant_kb_inference]'
+      );
     });
 
     describe('security roles and access privileges', () => {