Local and Private AI

Where AI processing happens is a design decision. This page explains the options, what current projects support, and what is still development or R&D.

Local processing in our projects

Two of our projects work with local processing.

Comparison of local models

Auto LLM Benchmark compares local models on your tasks.

What it does: The same tasks are run on local models; answers, speed and quality grades are collected in one table.

Note: The compared models run locally; the AI evaluator (OpenAI GPT-4.1) is an external model.

Auto LLM Benchmark

Local transcription

Transcribes long audio recordings on your own computer.

What it does: Recognition runs with GPU acceleration and works fully offline after the initial setup.

Note: The optional text-processing scenario (AI structuring into a Google Docs article) uses an AI model and Google Docs.

Local transcription of large audio files

When local processing may be relevant

These are reasons to consider it, not reasons to assume it.

  • The organization wants to limit what data leaves its environment.
  • Network access is unreliable or restricted.
  • Usage is predictable enough that per-request pricing is worth comparing.
  • A specific model or runtime must be controlled and kept fixed.

Local is not inherently cheaper, faster or more accurate. Each of these has to be measured for the task.

Cloud, local and hybrid

A comparison of where processing happens, not a ranking.

ApproachWhere processing happensWhat to check firstWhat stays external
Cloud AIAt an external providerProvider terms, what data is sent, availabilityThe model and the provider’s infrastructure
Local AIIn a specified local environmentHardware, model quality for the task, maintenance effortAny other remote step in the workflow
HybridSome steps local, some externalWhich data goes where and how that is controlledEvery external step

Definitions

These terms are often mixed up.

Cloud AI
Processing through an external provider.
Local AI
Processing in a specified local environment.
Private AI
An architecture involving access, isolation, storage and data-transfer controls. It is not a synonym for local execution.
On-premise
Deployment within the organization’s own infrastructure.
Laboratory infrastructure
A separate environment. It is not automatically the organization’s environment.

What this means in practice

  • Local execution alone does not make an entire workflow private.
  • Telegram, Google services, external AI APIs and other remote systems remain external components.
  • Local transcription does not prove that downstream LLM processing is local.
  • Locally benchmarked models do not prove that an evaluator ran locally.
  • Local is not inherently cheaper, faster or more accurate.
  • Running models as a hosted service for others is a separate task from building local solutions.

Choosing an approach

A first approach to evaluate for each kind of need. Approaches can be combined.

NeedFirst approach to evaluate
Stable output formatPrompting, examples, configuration, schema validation
Changing internal knowledgeRetrieval / RAG
Actions in organizational systemsTools, APIs, bounded agent workflows
Domain-specific behaviorEvaluate whether adaptation is necessary
Persistent behavior change, enough suitable data, simpler approaches insufficientA fine-tuning experiment
Deterministic taskNormal automation

Fine-tuning is not the inevitable destination.

AI Model Engineering chain

Each stage with its scope and how far current work supports it.

  1. Model Selection

    Supported by local comparison experiments.

    Confirmed by projects
  2. Local Deployment

    Laboratory-scale local execution, not production hosting.

    Confirmed by projects
  3. Configuration & Optimization

    Measurement is supported; systematic optimization is developing.

    Developing
  4. Adaptation

    A developing direction.

    Developing
  5. Fine-tuning

    Planned LoRA / QLoRA R&D.

    Planned / R&D
  6. Evaluation

    Supported by projects. No before/after fine-tuning results are claimed.

    Confirmed by projects
  7. Integration

    Experience from our projects; boundaries depend on each project.

    Confirmed by projects
  8. Deployment

    A future operational stage that would need a separate assessment.

    Planned / R&D

Demonstration AI infrastructure

A dedicated laboratory AI compute environment is a concept for developing and demonstrating solutions. It is not an available managed service.

Demonstration concept Demonstration concept — no hardware, model, capacity or uptime is claimed

What it would be used for

  • Running local LLM experiments
  • Evaluating models
  • Testing document-processing workflows
  • Testing RAG architectures
  • Testing AI-assisted automation
  • Testing speech and transcription workflows
  • Demonstrating AI integrations
  • Validating a proposed solution before deployment

The application server and the AI compute server may be separate

An application or automation server (a website, Telegram, n8n, a CRM) can call an AI inference server through an API. They can be different systems in different places.

Illustrative architecture — not a documented implementation

  1. Website, Telegram, n8n, CRM (application / automation server) Unknown / not documented Conceptual illustration
  2. API Unknown / not documented Conceptual illustration
  3. AI inference server (concept) Unknown / not documented Conceptual illustration
  4. Local LLM, embeddings, other AI models Unknown / not documented Conceptual illustration

What is not claimed

  • Hardware specifications, GPU models or model sizes
  • Performance figures, capacity or uptime
  • Network topology
  • That the laboratory operates production AI hosting
  • That any of this is available as a service

What does exist: laboratory-scale local experiments documented in the projects, such as local model comparison and local transcription.

Possible deployment models

A successful solution could eventually be reproduced in the organization’s own environment. Depending on requirements this may involve:

Local inference

Models run in a specified local environment.

Private infrastructure

An architecture with access, isolation, storage and data-transfer controls.

On-premise deployment

Deployment within the organization’s own infrastructure.

Hybrid architecture

Some steps local, some external.

External AI APIs

Processing through an external provider.

Separate application and AI compute servers

The application and the inference run on different systems.

These are options to evaluate. The laboratory does not currently sell or operate all of them.

Results from our projects

What the local-processing projects deliver.

Auto LLM Benchmark

The same tasks for different local models — quality and speed in one table.

Local transcription

In one run, about 60 hours of lectures were processed in about 5 hours on a GPU.

Developing and planned directions

Directions, not available services.

Developing

  • Retrieval / RAG
  • Systematic inference optimization
  • Specialized datasets
  • Domain adaptation

Planned / R&D

  • LoRA / QLoRA fine-tuning
  • Production local model deployment
  • Dedicated Private AI infrastructure
  • Supported local model API

Fine-tuning

A planned AI Model Engineering and R&D direction. It is not a launched, standard commercial service.

Before any future fine-tuning experiment we would require:

Preconditions

  1. A measured baseline
  2. A specific, identified deficiency to address
  3. A justification against simpler alternatives
  4. Authorized and suitable data
  5. Separate training, validation and test data
  6. Criteria for improvement and for regression
  7. Resource and deployment considerations
  8. An evaluation of the overall complexity and cost

There is no price list and no purchase option for fine-tuning.

Questions

Is local AI automatically private?

No. Private AI is about access, isolation, storage and data-transfer controls. Local execution is only one possible part of it.

Is local cheaper than cloud?

Not by default. Cost, speed and accuracy have to be measured for your task.

Does ASP Lab host models for customers?

Not as a standalone service at the moment. We build solutions that run in your environment or in the cloud — local, cloud or hybrid, depending on requirements.

Is fine-tuning available now?

No. LoRA / QLoRA is planned R&D, and simpler approaches are evaluated first.

Start with one process.

Describe what is currently done manually, what data is involved and what result you would like to achieve. You do not need a technical specification or a chosen model to begin.

Please do not share trade secrets, source code, or sensitive personal data before an NDA (non-disclosure agreement) is signed.