Blog · 24 September 2026 · 6 min read
On-premise or cloud AI: 7 questions to ask before choosing
"Is it better to have our own AI or just use ChatGPT?" is the question we hear most often. The answer depends on a few concrete factors. Here are the seven questions we ask clients before proposing any solution.
In short: on-premise AI makes sense when you work with confidential data, when many people will use it every day and when you want predictable costs without per-user fees. The cloud makes sense for occasional use, for tasks that need the most powerful models and when you don't want to manage hardware. Many companies use both: local for sensitive data, cloud for everything else.
The 7 questions
- What data will we put into the AI? Contracts, customer and employee data, projects, recipes, source code: if they are confidential, keeping them in-house simplifies GDPR, non-disclosure agreements and risk.
- How many people will use it, and how often? With a cloud service you usually pay per user or per use; with local AI you pay for the hardware once, no matter how many questions you ask.
- For which tasks? Writing, summaries, questions about documents, data extraction: local models handle these well. Very complex reasoning or web searches remain the strong point of the large cloud models.
- Does it need to connect to our programs? A local AI integrates with management systems, shared folders and automations without data ever leaving the company network.
- Who will manage it? A local AI needs updating, backing up and protecting. You need someone in-house or a supplier to take care of it.
- Does it need to work without the internet? A local AI keeps working even when the connection is slow or down.
- How will we train our staff? Under the AI Act, companies must take measures to support the AI literacy of the people who use it, whichever solution they choose.
How to read the answers
| If... | Then choose |
|---|---|
| The data is confidential and use is daily | On-premise AI |
| Use is occasional and the data isn't sensitive | Cloud service |
| There is both confidential data and very complex tasks | Both, with clear rules on what goes where |
| You don't yet know how much it will be used | A local trial on existing hardware, then decide |
A simple way to decide: try it
Rather than deciding on paper, you can run a trial: install an open model on a computer you already have, let two or three colleagues use it for a couple of weeks and measure what works. The step-by-step guide explains how.
For hardware and installation costs, you'll find the figures in the guide to local AI costs.
When it's worth getting help
Want it all in a PDF to print or share with colleagues? Download the complete guide for free: hardware, models, installation, security and a 20-point checklist.
A trial on one computer takes an afternoon. Taking it into production for a company is a different job: accounts and permissions per department, secure remote access, backups, updates, connection to management systems and staff training (which also helps with the AI Act).
If the trial has convinced you and you want a reliable installation, get in touch: we'll start from what you've already tested. Dabryx consultancy starts at €100 per hour.
Frequently asked questions
What does on-premise AI mean?
It means the artificial intelligence model is installed on the company's own hardware, on its premises or in a data centre it controls, rather than used as a provider's cloud service.
Is on-premise AI more secure than the cloud?
It removes the need to send data to an external AI provider, which is the main risk. But security also depends on how it's installed: access control, updates, backups and no direct exposure to the internet.
Can local AI and ChatGPT be used together?
Yes, and it's a common choice: local AI for confidential documents and data, cloud services for tasks without sensitive information. You need clear rules, communicated to your staff.
Want an estimate for your company?
Tell us how many people will use the AI and what for: we'll tell you which configuration you need.
Response times
Within 2 hours on business days (9:00–18:00) for clients with a support contract.
AI consulting
From €100 per hour, on your company's servers or Macs.
Where we work
All over Italy, remotely and on site.