Local AI allows you to download powerful models directly to your computer and use them offline. In this article, you will learn how to set it up on your computer in just a few steps with LM Studio and what you need to pay attention to. We will be happy to support you, integrate local AI into your processes.
You know the problem: To use AI models like ChatGPT, you always need an internet connection and your data is transferred to external servers - a potential risk for data protection.
The solution? Local AI. With tools like LM Studio and Ollama you can run powerful language models directly on your own computer, offline, secure and without API costs. In this article, we explain step by step how to work with LM Studio start. We use this tool ourselves, as it is a User-friendly graphical interface while Ollama is mainly about the Command line is controlled.
What is local AI? And what advantages does it bring?
With most AI tools, the models run in the cloud - this means that every request is sent via the internet to external servers, where it is processed and answered. While this is practical for many applications, it also has some disadvantages: Data is passed on, there are dependencies on providers and in some cases there may be waiting times.
Local AI works differently. Instead of sending requests to an external server, the model runs directly on your computer. This means that you can completely independent of the Internet and you can use your data not shared with third parties can be used. This is a major advantage, especially in areas where data protection or fast response times are important.
You also benefit from other advantages such as faster response times and the possibility to use the AI without ongoing API costs to use. You can find out more in our separate blog article.
You can host AI models locally with these steps
1. download & install LM Studio
LM Studio is available for Windows, macOS and Linux. You can download it directly from the official website and install it with just a few clicks.
System requirements:
- Operating systemWindows 10+, macOS 12+, Linux
- HardwareAt least 8 GB RAM (more for larger models)
- GPU (optional): A powerful graphics card can significantly speed up processing
After installation, you can start immediately with the model selection
2. select & download an AI model
There is a large selection of models in LM Studio - but not every model is suitable for every computer. Some are resource-efficient and also run on weaker systems, while others are more powerful but require significantly more computing power. The best-known models available in LM Studio are DeepSeek, Meta's Llama and Mistralas well as other open source models such as Gemma from Google or Falcon from TII.
Quick set-up: When you start LM Studio for the first time, by default DeepSeek is suggested as the first model. If you would like a different model, you can repeat this step skip and later via the "Discover" button (blue magnifying glass top left) search other models.
What you should look out for:
- Model size: Smaller models run faster, larger ones are more powerful
- Memory requirement: Depending on the model size and quantisation
- Intended use: Some models are better for texts, others for code
Tip: If you are unsure, start with a smaller model (e.g. Mistral 7B) and increase if your PC allows it.
Different model types & what they mean
Not every model is the same - in addition to the size, there are also differences in the Optimisation and compression. Here are the most important terms:
- Base models (standard): Original versions with high accuracybut large memory requirements
- Distilled models (distill): Compressed versionswhich provide similarly good answers but require less computing power
- Quantised models (e.g. 4-bit, 8-bit): Memory-optimised variantsthat require less RAM - good for weaker PCs, but with minimal loss of quality
Important: If you have little memory, choose a Distilled or quantised modelto save power!
Once you have chosen your model, you can Download and start directly via LM Studio.
3. start model & test first prompts
After downloading, you can simply load the model into LM Studio. Here is a brief overview:
- Select model in the interface
- Customise settings (e.g. creativity, answer length)
- Try out the first promptsto test the quality
4. fine adjustments for better performance
To ensure that your local AI model runs stably and responds as quickly as possible, you can Carry out optimisations. It is particularly important to utilise your existing Hardware resourcesto make the model work more efficiently.
If your computer has a Dedicated graphics card (GPU) in LM Studio, you should use the Activate GPU acceleration. This shifts a large part of the computing power to the graphics card, which significantly improves the speed. If you only have one Processor (CPU) the processing can be a little slower, but smaller models still work well.
Another important point is the Memory utilisation. Some models are very large and require a lot of RAM (random access memory). If your computer does not have enough RAM, the model may work slowly or even crash. Here it helps to use a Quantised model variant to choose. These are specially optimised to use less memory by slightly reducing the internal calculation precision - however, the loss of quality in the responses is usually minimal.
You can also adjust certain parameters in LM Studio to influence the AI's responses. Two important settings are Token limit and the Temperature:
- The token limit determines the maximum length of an answer. A higher limit means longer answers, but also higher computing effort
- The temperature controls how "creative" or "predictable" the answers are. A lower value leads to more precise, factual answers, while a higher value generates more variation and creativity.
With these customisations, you can optimally adapt your local AI to your Tuning hardware and get the best out of it!
Conclusion
Local AI gives you the opportunity to use powerful models directly on your own computer Secure, independent and without running costs. Especially if you value Data protection, fast response times and full control this is a great alternative to cloud AI.
But the right set-up requires some thought: Which model suits your hardware? How do you optimise performance? And how can local AI be seamlessly integrated into your workflow?
This is exactly where we support you! We help you to find the right AI solution for your individual needs or your company from model selection to set-up and optimisation.
Let us together the perfect AI strategy for you - efficient and future-proof!
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