What does local AI mean?
Local AI means that an AI model runs on a computer you own or on infrastructure you operate yourself. This can allow the model itself to be processed without an external model API. However, whether data leaves your infrastructure depends on all the components involved.
AN EXAMPLE IN PRACTICE
Where you might encounter it
A business runs an internal assistant on its own hardware. Approved documents are searched locally. External search, telemetry and additional services are checked separately, rather than assuming that every component works offline.
Why does this matter for your business?
You can gain greater influence over model operation, access and data flows. At the same time, your company takes on responsibilities for maintenance, security, availability and the required hardware.
Is local AI automatically the cheapest option?
Not necessarily. Compare hardware, operation and maintenance with external services. A proof of concept can show which language model performs the task well enough on your infrastructure.
Frequently asked questions
Can local AI work completely offline?
This is possible for suitable tasks if the model, data and required functions are available locally. An application that uses external search or online interfaces, however, is not fully offline.
Is local AI automatically compliant with data protection requirements?
No. Purpose, permissions, processing and deletion rules must also be clarified for local systems. The model’s location does not replace a review of the entire solution.
What to keep in mind
- Check the entire data flow, not just the model.
- Test hardware against the intended tasks.
- Define updates, access and responsibilities.
From NetzTurm Decode. Clear explanations for your business.