diff --git a/src/Libraries/Microsoft.Extensions.AI/Functions/AIFunctionFactory.cs b/src/Libraries/Microsoft.Extensions.AI/Functions/AIFunctionFactory.cs
index 8f473fe3f7a..d0d3385749e 100644
--- a/src/Libraries/Microsoft.Extensions.AI/Functions/AIFunctionFactory.cs
+++ b/src/Libraries/Microsoft.Extensions.AI/Functions/AIFunctionFactory.cs
@@ -22,7 +22,7 @@ namespace Microsoft.Extensions.AI;
 public static partial class AIFunctionFactory
 {
     /// <summary>Holds the default options instance used when creating function.</summary>
-    private static readonly AIFunctionFactoryCreateOptions _defaultOptions = new();
+    private static readonly AIFunctionFactoryOptions _defaultOptions = new();
 
     /// <summary>Creates an <see cref="AIFunction"/> instance for a method, specified via a delegate.</summary>
     /// <param name="method">The method to be represented via the created <see cref="AIFunction"/>.</param>
@@ -31,14 +31,14 @@ public static partial class AIFunctionFactory
     /// <remarks>
     /// <para>
     /// Return values are serialized to <see cref="JsonElement"/> using <paramref name="options"/>'s
-    /// <see cref="AIFunctionFactoryCreateOptions.SerializerOptions"/>. Arguments that are not already of the expected type are
+    /// <see cref="AIFunctionFactoryOptions.SerializerOptions"/>. Arguments that are not already of the expected type are
     /// marshaled to the expected type via JSON and using <paramref name="options"/>'s
-    /// <see cref="AIFunctionFactoryCreateOptions.SerializerOptions"/>. If the argument is a <see cref="JsonElement"/>,
+    /// <see cref="AIFunctionFactoryOptions.SerializerOptions"/>. If the argument is a <see cref="JsonElement"/>,
     /// <see cref="JsonDocument"/>, or <see cref="JsonNode"/>, it is deserialized directly. If the argument is anything else unknown,
     /// it is round-tripped through JSON, serializing the object as JSON and then deserializing it to the expected type.
     /// </para>
     /// </remarks>
-    public static AIFunction Create(Delegate method, AIFunctionFactoryCreateOptions? options)
+    public static AIFunction Create(Delegate method, AIFunctionFactoryOptions? options)
     {
         _ = Throw.IfNull(method);
 
@@ -64,7 +64,7 @@ public static AIFunction Create(Delegate method, string? name = null, string? de
     {
         _ = Throw.IfNull(method);
 
-        AIFunctionFactoryCreateOptions createOptions = serializerOptions is null && name is null && description is null
+        AIFunctionFactoryOptions createOptions = serializerOptions is null && name is null && description is null
             ? _defaultOptions
             : new()
             {
@@ -90,14 +90,14 @@ public static AIFunction Create(Delegate method, string? name = null, string? de
     /// <remarks>
     /// <para>
     /// Return values are serialized to <see cref="JsonElement"/> using <paramref name="options"/>'s
-    /// <see cref="AIFunctionFactoryCreateOptions.SerializerOptions"/>. Arguments that are not already of the expected type are
+    /// <see cref="AIFunctionFactoryOptions.SerializerOptions"/>. Arguments that are not already of the expected type are
     /// marshaled to the expected type via JSON and using <paramref name="options"/>'s
-    /// <see cref="AIFunctionFactoryCreateOptions.SerializerOptions"/>. If the argument is a <see cref="JsonElement"/>,
+    /// <see cref="AIFunctionFactoryOptions.SerializerOptions"/>. If the argument is a <see cref="JsonElement"/>,
     /// <see cref="JsonDocument"/>, or <see cref="JsonNode"/>, it is deserialized directly. If the argument is anything else unknown,
     /// it is round-tripped through JSON, serializing the object as JSON and then deserializing it to the expected type.
     /// </para>
     /// </remarks>
-    public static AIFunction Create(MethodInfo method, object? target, AIFunctionFactoryCreateOptions? options)
+    public static AIFunction Create(MethodInfo method, object? target, AIFunctionFactoryOptions? options)
     {
         _ = Throw.IfNull(method);
         return new ReflectionAIFunction(method, target, options ?? _defaultOptions);
@@ -129,7 +129,7 @@ public static AIFunction Create(MethodInfo method, object? target, string? name
     {
         _ = Throw.IfNull(method);
 
-        AIFunctionFactoryCreateOptions? createOptions = serializerOptions is null && name is null && description is null
+        AIFunctionFactoryOptions? createOptions = serializerOptions is null && name is null && description is null
             ? _defaultOptions
             : new()
             {
@@ -160,12 +160,13 @@ private sealed class ReflectionAIFunction : AIFunction
         /// This should be <see langword="null"/> if and only if <paramref name="method"/> is a static method.
         /// </param>
         /// <param name="options">Function creation options.</param>
-        public ReflectionAIFunction(MethodInfo method, object? target, AIFunctionFactoryCreateOptions options)
+        public ReflectionAIFunction(MethodInfo method, object? target, AIFunctionFactoryOptions options)
         {
             _ = Throw.IfNull(method);
             _ = Throw.IfNull(options);
 
-            options.SerializerOptions.MakeReadOnly();
+            JsonSerializerOptions serializerOptions = options.SerializerOptions ?? AIJsonUtilities.DefaultOptions;
+            serializerOptions.MakeReadOnly();
 
             if (method.ContainsGenericParameters)
             {
@@ -222,20 +223,20 @@ static bool IsAsyncMethod(MethodInfo method)
             bool sawAIContextParameter = false;
             for (int i = 0; i < parameters.Length; i++)
             {
-                _parameterMarshallers[i] = GetParameterMarshaller(options, parameters[i], ref sawAIContextParameter);
+                _parameterMarshallers[i] = GetParameterMarshaller(serializerOptions, parameters[i], ref sawAIContextParameter);
             }
 
             _needsAIFunctionContext = sawAIContextParameter;
 
             // Get the return type and a marshaling func for the return value.
             _returnMarshaller = GetReturnMarshaller(method, out Type returnType);
-            _returnTypeInfo = returnType != typeof(void) ? options.SerializerOptions.GetTypeInfo(returnType) : null;
+            _returnTypeInfo = returnType != typeof(void) ? serializerOptions.GetTypeInfo(returnType) : null;
 
             Name = functionName;
             Description = options.Description ?? method.GetCustomAttribute<DescriptionAttribute>(inherit: true)?.Description ?? string.Empty;
             UnderlyingMethod = method;
             AdditionalProperties = options.AdditionalProperties ?? EmptyReadOnlyDictionary<string, object?>.Instance;
-            JsonSerializerOptions = options.SerializerOptions;
+            JsonSerializerOptions = serializerOptions;
             JsonSchema = AIJsonUtilities.CreateFunctionJsonSchema(
                 method,
                 title: Name,
@@ -308,7 +309,7 @@ static bool IsAsyncMethod(MethodInfo method)
         /// Gets a delegate for handling the marshaling of a parameter.
         /// </summary>
         private static Func<IReadOnlyDictionary<string, object?>, AIFunctionContext?, object?> GetParameterMarshaller(
-            AIFunctionFactoryCreateOptions options,
+            JsonSerializerOptions serializerOptions,
             ParameterInfo parameter,
             ref bool sawAIFunctionContext)
         {
@@ -336,7 +337,7 @@ static bool IsAsyncMethod(MethodInfo method)
 
             // Resolve the contract used to marshal the value from JSON -- can throw if not supported or not found.
             Type parameterType = parameter.ParameterType;
-            JsonTypeInfo typeInfo = options.SerializerOptions.GetTypeInfo(parameterType);
+            JsonTypeInfo typeInfo = serializerOptions.GetTypeInfo(parameterType);
 
             // Create a marshaller that simply looks up the parameter by name in the arguments dictionary.
             return (IReadOnlyDictionary<string, object?> arguments, AIFunctionContext? _) =>
@@ -359,7 +360,7 @@ static bool IsAsyncMethod(MethodInfo method)
 #pragma warning disable CA1031 // Do not catch general exception types
                         try
                         {
-                            string json = JsonSerializer.Serialize(value, options.SerializerOptions.GetTypeInfo(value.GetType()));
+                            string json = JsonSerializer.Serialize(value, serializerOptions.GetTypeInfo(value.GetType()));
                             return JsonSerializer.Deserialize(json, typeInfo);
                         }
                         catch
diff --git a/src/Libraries/Microsoft.Extensions.AI/Functions/AIFunctionFactoryCreateOptions.cs b/src/Libraries/Microsoft.Extensions.AI/Functions/AIFunctionFactoryOptions.cs
similarity index 75%
rename from src/Libraries/Microsoft.Extensions.AI/Functions/AIFunctionFactoryCreateOptions.cs
rename to src/Libraries/Microsoft.Extensions.AI/Functions/AIFunctionFactoryOptions.cs
index 27db24acadb..ac285241469 100644
--- a/src/Libraries/Microsoft.Extensions.AI/Functions/AIFunctionFactoryCreateOptions.cs
+++ b/src/Libraries/Microsoft.Extensions.AI/Functions/AIFunctionFactoryOptions.cs
@@ -6,40 +6,34 @@
 using System.ComponentModel;
 using System.Reflection;
 using System.Text.Json;
-using Microsoft.Shared.Diagnostics;
 
 namespace Microsoft.Extensions.AI;
 
 /// <summary>
 /// Represents options that can be provided when creating an <see cref="AIFunction"/> from a method.
 /// </summary>
-public sealed class AIFunctionFactoryCreateOptions
+public sealed class AIFunctionFactoryOptions
 {
-    private JsonSerializerOptions _options = AIJsonUtilities.DefaultOptions;
-    private AIJsonSchemaCreateOptions _jsonSchemaCreateOptions = AIJsonSchemaCreateOptions.Default;
-
     /// <summary>
-    /// Initializes a new instance of the <see cref="AIFunctionFactoryCreateOptions"/> class.
+    /// Initializes a new instance of the <see cref="AIFunctionFactoryOptions"/> class.
     /// </summary>
-    public AIFunctionFactoryCreateOptions()
+    public AIFunctionFactoryOptions()
     {
     }
 
     /// <summary>Gets or sets the <see cref="JsonSerializerOptions"/> used to marshal .NET values being passed to the underlying delegate.</summary>
-    public JsonSerializerOptions SerializerOptions
-    {
-        get => _options;
-        set => _options = Throw.IfNull(value);
-    }
+    /// <remarks>
+    /// If no value has been specified, the <see cref="AIJsonUtilities.DefaultOptions"/> instance will be used.
+    /// </remarks>
+    public JsonSerializerOptions? SerializerOptions { get; set; }
 
     /// <summary>
     /// Gets or sets the <see cref="AIJsonSchemaCreateOptions"/> governing the generation of JSON schemas for the function.
     /// </summary>
-    public AIJsonSchemaCreateOptions JsonSchemaCreateOptions
-    {
-        get => _jsonSchemaCreateOptions;
-        set => _jsonSchemaCreateOptions = Throw.IfNull(value);
-    }
+    /// <remarks>
+    /// If no value has been specified, the <see cref="AIJsonSchemaCreateOptions.Default"/> instance will be used.
+    /// </remarks>
+    public AIJsonSchemaCreateOptions? JsonSchemaCreateOptions { get; set; }
 
     /// <summary>Gets or sets the name to use for the function.</summary>
     /// <value>
diff --git a/test/Libraries/Microsoft.Extensions.AI.Tests/Functions/AIFunctionFactoryTest.cs b/test/Libraries/Microsoft.Extensions.AI.Tests/Functions/AIFunctionFactoryTest.cs
index d8673e36c4d..daece288cca 100644
--- a/test/Libraries/Microsoft.Extensions.AI.Tests/Functions/AIFunctionFactoryTest.cs
+++ b/test/Libraries/Microsoft.Extensions.AI.Tests/Functions/AIFunctionFactoryTest.cs
@@ -160,7 +160,7 @@ public void AIFunctionFactoryCreateOptions_ValuesPropagateToAIFunction()
     {
         IReadOnlyDictionary<string, object?> metadata = new Dictionary<string, object?> { ["a"] = "b" };
 
-        var options = new AIFunctionFactoryCreateOptions
+        var options = new AIFunctionFactoryOptions
         {
             Name = "test name",
             Description = "test description",
@@ -181,14 +181,14 @@ public void AIFunctionFactoryCreateOptions_ValuesPropagateToAIFunction()
     }
 
     [Fact]
-    public void AIFunctionFactoryCreateOptions_SchemaOptions_HasExpectedDefaults()
+    public void AIFunctionFactoryOptions_DefaultValues()
     {
-        var options = new AIFunctionFactoryCreateOptions();
-        var schemaOptions = options.JsonSchemaCreateOptions;
+        AIFunctionFactoryOptions options = new();
 
-        Assert.NotNull(schemaOptions);
-        Assert.True(schemaOptions.IncludeTypeInEnumSchemas);
-        Assert.True(schemaOptions.RequireAllProperties);
-        Assert.True(schemaOptions.DisallowAdditionalProperties);
+        Assert.Null(options.Name);
+        Assert.Null(options.Description);
+        Assert.Null(options.AdditionalProperties);
+        Assert.Null(options.SerializerOptions);
+        Assert.Null(options.JsonSchemaCreateOptions);
     }
 }