How to run AI locally for your business
Running AI on your own hardware is more approachable than it used to be. Here are the steps, and the parts that take the most care.
Last updated October 2026
1. Decide what you want it to do
Write down three to five real tasks, such as summarizing a type of document or answering questions from your policies. They decide everything else, from the model to the hardware.
2. Choose hardware that fits those tasks
Bigger models need more memory and a more capable machine. Test your tasks before buying; what you already have may be enough for a start.
3. Install a model runner and pick models
Open-source tools such as Ollama download and run models locally. Try a few models with your real examples and compare the answers.
4. Add a chat interface and your documents
Staff need a simple chat app, user accounts, and a way for the assistant to answer from your documents. This is where most of the setup time goes.
5. Secure and maintain it
- Decide who can reach it on your network, and keep it off the open internet.
- Know what connects to the internet and why, such as updates.
- Keep software and models updated, and test after each update.
- Back up configuration and document how it's set up.
Or have it done for you
NexoGrid designs, installs and manages private AI on hardware you own. Compare the options in managed private AI vs DIY Ollama.