diff --git a/README.md b/README.md
index db0f8861..344eac6c 100644
--- a/README.md
+++ b/README.md
@@ -407,6 +407,11 @@ For more customization, creating a [HeaderProvider](https://sap.github.io/cloud-
 
 ### Set AI Core credentials as environment variable
 
+- Running the application locally without a service binding will throw:
+
+  `Could not find any matching service bindings for service identifier 'aicore'`
+
+
 - Go into the BTP Cockpit
 - Instances and Subscriptions -> Instances -> AI Core -> View Credentials -> Copy JSON
 - Set it as an environment variable `AICORE_SERVICE_KEY` in your IDE