local AI vs cloud AI

What local actually buys you — and when the cloud is still better.

Local AI changes custody and continuity. Cloud AI usually wins on frontier quality and convenience. The useful choice starts with the work and the data, not a slogan.

cloud AI

Best available models, someone else’s infrastructure.

  • Custody: prompts and files leave your premises under a provider’s terms, controls, and retention.
  • Quality: frontier cloud models are better for many difficult or broad tasks.
  • Cost: recurring seats or usage; little or no hardware to maintain.
  • Continuity: the workflow depends on internet access, provider availability, and an active account.
  • Operation: fast to start, with upgrades handled by the provider.

local AI

Focused models, infrastructure you own.

  • Custody: prompts and files can stay on hardware inside your control.
  • Quality: strong for tested drafting, search, summarizing, transcription, and narrow workflows; not always enough.
  • Cost: hardware and setup up front; ongoing care is optional.
  • Continuity: the tested workflow continues with the network disconnected.
  • Operation: someone owns updates, backups, health, and physical security.
decision-rule.txt

Choose the cloud when the task needs frontier quality, live web access, or instant scale and the data is allowed to go there. Choose local when custody, offline continuity, stable per-seat economics, or a narrow repeatable workflow matters more. A deliberate hybrid can be honest too, as long as every exception is named.

Local changes custody. It does not grant compliance.

A disconnected local workflow removes a cloud model provider from the processing path. It does not secure the office, encrypt the disk, set retention, train users, or satisfy a professional rule by itself. Those controls still belong to the organization and its counsel.

The acceptance test is concrete: run the real workflow with the network disconnected, inspect its local action records, and record every deliberate exception. Read how the unplug test works and the claims standard.

Test the choice against one real task.

The intake plan names the local option, the honest cloud exception, or the reason not to build either one.

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