diff --git a/src/components/artifact-selection-box.tsx b/src/components/artifact-selection-box.tsx
index 8cab0c9..aa94a18 100644
--- a/src/components/artifact-selection-box.tsx
+++ b/src/components/artifact-selection-box.tsx
@@ -11,32 +11,35 @@ type ArtifactSelectionBoxProps = {
   isSelected: boolean;
   title: string;
   onSelect: () => void;
+  disabled?: boolean;
 };
 
 export function ArtifactSelectionBox({ 
   artifact, 
   isSelected, 
   title,
-  onSelect 
+  onSelect,
+  disabled = false
 }: ArtifactSelectionBoxProps): JSX.Element {
   return (
     <Paper 
       sx={{ 
         flex: 1,
         p: 2,
-        cursor: 'pointer',
+        cursor: disabled ? 'not-allowed' : 'pointer',
         transition: 'all 0.2s',
         border: '2px solid',
         borderColor: isSelected ? 'primary.main' : 'divider',
         bgcolor: isSelected ? 'action.selected' : 'background.paper',
+        opacity: disabled ? 0.5 : 1,
         '&:hover': {
-          bgcolor: 'action.hover',
+          bgcolor: disabled ? 'background.paper' : 'action.hover',
         },
       }}
       elevation={isSelected ? 8 : 1}
-      onClick={onSelect}
+      onClick={disabled ? undefined : onSelect}
     >
-      <Typography variant="h6" gutterBottom>{title}</Typography>
+      <Typography variant="h6" gutterBottom data-testid={`${title.toLowerCase().replace(/\s+/g, '-')}-title`}>{title}</Typography>
       {artifact ? (
         <React.Fragment>
           <Typography variant="subtitle1">{artifact.name}</Typography>
diff --git a/src/components/chat/artifact-modal.test.tsx b/src/components/chat/artifact-modal.test.tsx
index 3944ad5..d59b736 100644
--- a/src/components/chat/artifact-modal.test.tsx
+++ b/src/components/chat/artifact-modal.test.tsx
@@ -1,16 +1,16 @@
 import React from "react";
-import { render } from "@testing-library/react";
+import { render, screen } from "@testing-library/react";
 import userEvent from "@testing-library/user-event";
 import "@testing-library/jest-dom";
 import { MockedProvider } from "@apollo/client/testing";
 import { ArtifactModal } from "./artifact-modal";
-import { MeDocument, ArtifactAttributeType } from "src/generated/graphql";
+import { ArtifactAttributeType } from "src/generated/graphql";
 
-const mockArtifact = {
+const equippedArtifact = {
   __typename: "ArtifactItem" as const,
-  id: "test-id",
+  id: "current-id",
   owner: "test-owner",
-  name: "Test Artifact",
+  name: "Super Equipped Test Artifact",
   level: 1,
   attributes: {
     __typename: "ArtifactAttributes" as const,
@@ -22,71 +22,62 @@ const mockArtifact = {
   },
 };
 
-const mocks = [
-  {
-    request: {
-      query: MeDocument,
-    },
-    result: {
-      data: {
-        me: {
-          account: {
-            hero: {
-              equipment: {
-                artifact: {
-                  ...mockArtifact,
-                  id: "current-id",
-                  name: "Current Artifact",
-                },
-              },
-            },
-          },
-        },
-      },
-    },
+const newArtifact = {
+  __typename: "ArtifactItem" as const,
+  id: "test-id",
+  owner: "test-owner",
+  name: "Goofy Test Artifact of Testing",
+  level: 1,
+  attributes: {
+    __typename: "ArtifactAttributes" as const,
+    namePrefix: { __typename: "ArtifactAttribute" as const, type: ArtifactAttributeType.BonusPhysicalDamage, magnitude: 1 },
+    namePostfix: { __typename: "ArtifactAttribute" as const, type: ArtifactAttributeType.BonusHealth, magnitude: 1 },
+    bonusAffixes: [],
+    titlePrefix: null,
+    titlePostfix: null,
   },
-];
+};
 
 describe("ArtifactModal", () => {
-  it("renders both artifacts and allows selection", async () => {
+  it("handles artifact selection and confirmation flow when current artifact exists", async () => {
     const user = userEvent.setup();
-    const { getByText } = render(
-      <MockedProvider mocks={mocks}>
-        <ArtifactModal artifact={mockArtifact} />
+    
+    render(
+      <MockedProvider>
+        <ArtifactModal currentArtifact={equippedArtifact} newArtifact={newArtifact} />
       </MockedProvider>
     );
 
-    // Check that both artifacts are rendered
-    expect(getByText("Current Artifact")).toBeInTheDocument();
-    expect(getByText("Test Artifact")).toBeInTheDocument();
-
-    // Continue button should be disabled initially
-    const continueButton = getByText("Continue with Selected");
-    expect(continueButton).toBeDisabled();
+    // Initial state: both artifacts rendered, button disabled
+    expect(screen.getByText(equippedArtifact.name)).toBeInTheDocument();
+    expect(screen.getByText(newArtifact.name)).toBeInTheDocument();
+    expect(screen.getByRole('button', { name: /continue with selected/i })).toBeDisabled();
 
-    // Select new artifact
-    await user.click(getByText("Test Artifact"));
-    expect(continueButton).toBeEnabled();
+    // Select new artifact and verify button enables
+    await user.click(screen.getByText(newArtifact.name));
+    expect(screen.getByRole('button', { name: /continue with selected/i })).toBeEnabled();
 
-    // Open confirmation dialog
-    await user.click(continueButton);
-    expect(getByText("Confirm Your Choice")).toBeInTheDocument();
-    expect(getByText(/Are you sure you want to keep the new artifact/)).toBeInTheDocument();
+    // Open and verify confirmation dialog with warning
+    await user.click(screen.getByRole('button', { name: /continue with selected/i }));
+    expect(screen.getByText("Are you sure you want to keep the new artifact?")).toBeInTheDocument();
+    expect(screen.getByText("This action cannot be undone.")).toBeInTheDocument();
   });
 
-  it("shows warning message in confirmation dialog", async () => {
+  it("automatically selects new artifact when no current artifact exists", async () => {
     const user = userEvent.setup();
-    const { getByText } = render(
-      <MockedProvider mocks={mocks}>
-        <ArtifactModal artifact={mockArtifact} />
+    render(
+      <MockedProvider>
+        <ArtifactModal currentArtifact={null} newArtifact={newArtifact} />
       </MockedProvider>
     );
 
-    // Select new artifact and open confirmation
-    await user.click(getByText("Test Artifact"));
-    await user.click(getByText("Continue with Selected"));
+    // Verify initial state
+    expect(screen.getByText("You have no artifact equipped. The new artifact will be automatically equipped.")).toBeInTheDocument();
+    expect(screen.getByRole('button', { name: /accept new artifact/i })).toBeEnabled();
 
-    // Check warning message
-    expect(getByText("This action cannot be undone.")).toBeInTheDocument();
+    // Open and verify confirmation dialog
+    await user.click(screen.getByRole('button', { name: /accept new artifact/i }));
+    expect(screen.getByText("Are you sure you want to equip the new artifact?")).toBeInTheDocument();
+    expect(screen.queryByText("This action cannot be undone.")).not.toBeInTheDocument();
   });
 }); 
\ No newline at end of file
diff --git a/src/components/chat/artifact-modal.tsx b/src/components/chat/artifact-modal.tsx
index 56bcc13..be247ab 100644
--- a/src/components/chat/artifact-modal.tsx
+++ b/src/components/chat/artifact-modal.tsx
@@ -6,26 +6,29 @@ import Button from "@mui/material/Button";
 
 import {
   ArtifactItem,
-  useMeQuery,
   useAcceptArtifactMutation,
   useRejectArtifactMutation,
 } from "src/generated/graphql";
 import { ArtifactSelectionBox } from "../artifact-selection-box";
 import { ConfirmationDialog } from "../confirmation-dialog";
 
+type ArtifactModalProps = {
+  currentArtifact: ArtifactItem | null;
+  newArtifact: ArtifactItem;
+};
+
 export function ArtifactModal({
-  artifact,
-}: {
-  artifact: ArtifactItem;
-}): JSX.Element {
+  currentArtifact,
+  newArtifact,
+}: ArtifactModalProps): JSX.Element {
   const [showConfirm, setShowConfirm] = useState(false);
-  const [selectedArtifact, setSelectedArtifact] = useState<"current" | "new" | null>(null);
-  const { data } = useMeQuery();
+  const [selectedArtifact, setSelectedArtifact] = useState<"current" | "new" | null>(
+    currentArtifact ? null : "new"
+  );
+  
   const [acceptArtifact] = useAcceptArtifactMutation();
   const [rejectArtifact] = useRejectArtifactMutation();
 
-  const currentArtifact = data?.me?.account?.hero?.equipment?.artifact;
-
   const handleConfirm = async () => {
     if (selectedArtifact === "new") {
       await acceptArtifact();
@@ -39,20 +42,23 @@ export function ArtifactModal({
       <Box sx={{ textAlign: "center", mb: 4 }}>
         <Typography variant="h4" gutterBottom>Choose Your Artifact</Typography>
         <Typography variant="body1" color="text.secondary" gutterBottom>
-          Select which artifact you want to keep. This choice cannot be undone.
+          {currentArtifact 
+            ? "Select which artifact you want to keep. This choice cannot be undone."
+            : "You have no artifact equipped. The new artifact will be automatically equipped."}
         </Typography>
       </Box>
 
       <Box sx={{ display: "flex", gap: 4, mb: 4 }}>
         <ArtifactSelectionBox
-          artifact={currentArtifact ?? null}
+          artifact={currentArtifact}
           isSelected={selectedArtifact === "current"}
           title="Current Artifact"
-          onSelect={() => setSelectedArtifact("current")}
+          onSelect={() => currentArtifact && setSelectedArtifact("current")}
+          disabled={!currentArtifact}
         />
 
         <ArtifactSelectionBox
-          artifact={artifact}
+          artifact={newArtifact}
           isSelected={selectedArtifact === "new"}
           title="New Artifact"
           onSelect={() => setSelectedArtifact("new")}
@@ -67,15 +73,17 @@ export function ArtifactModal({
           onClick={() => setShowConfirm(true)}
           sx={{ minWidth: 200 }}
         >
-          Continue with Selected
+          {currentArtifact ? "Continue with Selected" : "Accept New Artifact"}
         </Button>
       </Box>
 
       <ConfirmationDialog
         open={showConfirm}
         title="Confirm Your Choice"
-        message={`Are you sure you want to keep the ${selectedArtifact === "new" ? "new" : "current"} artifact?`}
-        warningMessage="This action cannot be undone."
+        message={currentArtifact 
+          ? `Are you sure you want to keep the ${selectedArtifact === "new" ? "new" : "current"} artifact?`
+          : "Are you sure you want to equip the new artifact?"}
+        warningMessage={currentArtifact ? "This action cannot be undone." : undefined}
         onConfirm={handleConfirm}
         onCancel={() => setShowConfirm(false)}
       />
diff --git a/src/components/chat/index.tsx b/src/components/chat/index.tsx
index 88b522d..6cc1574 100644
--- a/src/components/chat/index.tsx
+++ b/src/components/chat/index.tsx
@@ -355,7 +355,8 @@ export function Chat(): JSX.Element {
         >
           {pendingArtifact && (
             <ArtifactModal 
-              artifact={pendingArtifact}
+              currentArtifact={meData?.me?.account?.hero?.equipment?.artifact ?? null}
+              newArtifact={pendingArtifact}
             />
           )}
         </Box>