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How Local AI Actually Works

No jargon required. Here's what's actually happening on the machine, in plain language.

How a Document Becomes an Answer

You'll see the term RAG (retrieval-augmented generation) — it just means the system looks through your own documents before answering, instead of guessing from memory.

  1. Choose the sources — you point the system at approved policies, manuals, or reference files.
  2. Find relevant text — the search system locates the passages related to your question, not the whole document library.
  3. Build an answer — the local model uses that retrieved text as context for a response — it answers from what it found, not from memory.
  4. Check the source — you see where the answer came from, so you can verify it against the original.

"What is our procedure for handling a damaged shipment?" — instead of searching through folders and PDFs, the AI finds the relevant page and answers from it, and shows you where it came from.

The Model

A local model is downloaded and run on your system. Different models suit different tasks — some prioritize speed, others need more memory. Picking one means balancing capability, response speed, memory use, and the conditions of its license.

The Memory

The model, your question and its context, and the software all share memory. Larger models and longer conversations usually need more room. More memory expands what can fit — actual speed and how many people can use it at once still depend on the whole workload, not memory alone.

The Practical Questions

Do the documents leave the building? In a fully local deployment, document storage, retrieval, and model inference can all stay on your hardware. Any cloud-connected tools, external backups, or remote access you add need their own review.

Does it need an internet connection? A fully installed local model runs without internet access for the AI itself. Software updates, remote support, and any cloud-connected features you choose to add may need a connection.

Does every employee get access to every document? No, not automatically. Access has to be designed around your requirements — a document-search system needs the right source selection, user permissions, and testing.

Can the AI still give a wrong answer? Yes. Relevant source material helps a lot, but an answer can still be incomplete or wrong. Employees should check the cited source, and anything consequential still needs a human decision.

Where do I check what model fits my workload? The 64GB and 128GB workstation pages cover memory allocation, software options, practical model-size fit, and real benchmark results for each configuration.

See the systems: Business Hardware.