Cloud, local and hybrid AI

Cloud AI vs local AI.

AI does not have to live in one place. It can run on somebody else's infrastructure, on hardware you control, or across a combination of both.

Three common approaches

Cloud AI — processing happens on a provider's infrastructure
Local AI — processing happens on hardware you control
Hybrid AI — use each where it makes sense
Cloud is not automatically bad. Local is not automatically better. The right answer depends on the task, the information and the level of control your business needs.

What is cloud AI?

Cloud AI uses models running on infrastructure operated by another provider.

Easy access

Usually no specialist hardware is required inside the business.

Powerful models

Cloud providers can offer very capable models without you running the infrastructure.

Data journey

Information required for the task may leave your environment for processing.

What is local AI?

Local AI means the model runs on hardware controlled by you or your organisation.

More control

Information can potentially remain inside the environment you operate.

Hardware required

You need enough computing resources to run the model.

More responsibility

Updates, security, monitoring and infrastructure become your responsibility.

What is hybrid AI?

Hybrid architecture uses local and cloud systems together instead of treating the decision as all-or-nothing.

Sensitive work local

Some information can remain within your environment.

Cloud when useful

High-capability cloud models can still be used for appropriate tasks.

Minimise exposure

Only the information required for a particular job needs to travel.

Start with the business problem.

Sometimes the answer is AI. Sometimes it is automation. Sometimes two existing systems simply need to communicate properly. And whenever business information is involved, privacy and data ownership should be part of the decision.

Common questions

Frequently asked questions

Is local AI more private?

It can provide greater control because processing can remain inside an environment you control, but the complete system still needs to be designed securely.

Is cloud AI cheaper?

Sometimes. For occasional use, cloud AI can avoid the cost and maintenance of dedicated hardware.

Can a business use both?

Yes. Hybrid approaches can be very practical.

Which one should I choose?

Start with the task, sensitivity of the information, volume of use, budget and level of control required.

Keep learning

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