Fundamentals

Local AI, also called localized AI: what is it?

A language model that runs on your own servers instead of the cloud, also known as localized AI. Private, controllable, customisable and aligned with the EU AI Act.

How does it work?

LLM: the engine of modern AI

Large Language Models (LLMs) are the technology behind ChatGPT, Copilot and similar tools. The difference: we install them in your infrastructure.

We do not offer downloads of protected material. We are a technical consultancy for the implementation of open-source models.

Why it matters

The real dangers of cloud AI

Documented incidents every business should know.

Cloud Supply Chain Hack (2025)

A threat actor exfiltrated 6 million records from a major cloud provider's SSO and LDAP systems, compromising credentials of over 140,000 companies.

Admin Access Breach (2025)

Hackers gained administrative access to a leading hyperscaler in under 10 minutes by exploiting compromised credentials and escalating privileges.

AI Token Theft (2025)

Theft of authentication tokens from an AI chatbot gave direct access to CRM platforms, cloud services and corporate workspaces.

AI-assisted cyberattacks (2025)

An AI agent was manipulated to breach enterprise firewalls with 200,000 automated requests, enabling access to cloud-connected systems.

The Choice

Cloud vs. Local — the facts

Choosing correctly matters, especially in regulated industries where data privacy is a red line.

Feature Cloud (ChatGPT, Copilot…) Local (Freshlab Iberia)
Data privacy Data processed on third-party servers Data never leaves your premises
Operating costs Growing monthly subscriptions Only electricity — no recurring fees
Internet connection Always required Not required (air-gap capable)
EU AI Act compliance Limited transparency, elevated risk Full control, simplified auditing
Customisation Limited to what the provider offers Tailor-made models and tools
Internal knowledge Risk when uploading sensitive documents Secure — RAG module 100% local

Regulation

EU AI Act: competitive advantage with local AI

Companies with local AI have a structural advantage under the EU AI Regulation.

Full data control

Data never leaves your infrastructure. No third parties involved. Simplified audits.

Complete traceability

Every model decision is auditable. Full inference history for regulatory compliance.

Vendor independence

No dependency on OpenAI, Google or Microsoft policy changes. You control versions and updates.

Applications

Common use cases

See all 50+ tools covering these use cases

Convinced by the local approach?

See our complete pilot package — hardware, software, training and support included.