Private AI
Private AI: How Companies Use ChatGPT-Style Tools Without Sharing Their Data
Can't use public AI because of client contracts or compliance? Here's how a private AI assistant works, what it costs to run, and when it makes sense.
A private AI assistant gives your team ChatGPT-style help (drafting, summarizing, answering questions from your own files) while running on servers you control. Your data never goes to a public AI company. For businesses held back by client contracts, regulations, or internal policy, it's how they finally get to use AI at work.
Why many companies still can't use public AI
When an employee pastes a contract, a patient note, or a client's financials into a public AI tool, that data leaves the company's control. For a lot of businesses, that's a dealbreaker:
- Client contracts that forbid sharing client data with third parties
- Regulated data: health records, financial data, legal files, government work
- Trade secrets and source code that can't leave the building
- Audit requirements: needing a record of who accessed what
Some of the biggest names in business reacted the same way. Samsung restricted ChatGPT in 2023 after staff pasted internal code into it. JPMorgan Chase and others restricted public AI tools early on, and many have since built internal AI assistants with their own guardrails.
The problem with a ban is that people still need the help. Without an approved tool, staff either lose hours or quietly use public AI anyway. Neither is good.
What "private AI" actually means
A private AI setup has four parts, all inside your control:
- The model. Open-weight AI models (ones you can download and run yourself) have improved dramatically. Models from Meta, Mistral, DeepSeek, Alibaba's Qwen, and OpenAI's own open-weight release can handle most day-to-day business work.
- Where it runs. On your own server, in your private cloud account (AWS, Azure, Google Cloud), or fully offline on an isolated network.
- Your knowledge. The assistant is connected to your documents, policies, and systems, so it answers from your information and can cite where an answer came from.
- Access control. Single sign-on, user permissions, and activity logs that match your compliance rules.
The result looks and feels like ChatGPT to your team. The difference is where the data goes: nowhere.
What teams use it for
- "Ask our documents." Policies, contracts, SOPs, past proposals, and product manuals, answered in seconds with sources.
- Drafting. Proposals, reports, client emails, and job descriptions, in your company's voice.
- Summarizing. Long contracts, claims, meeting notes, and case files.
- Data questions. "Summarize open warranty claims over $10K this quarter" across spreadsheets and exports.
Private vs. public AI: the trade-offs
| Public AI (ChatGPT, Gemini) | Private AI | |
|---|---|---|
| Where your data goes | The provider's servers | Your servers or private cloud |
| Setup | Instant | A project: weeks, not days |
| Cost | Per-user subscription | Hardware or cloud costs plus setup and support |
| Top-end reasoning | Strongest available | Very good, slightly behind the frontier on hard tasks |
| Works offline | No | Yes, if you want |
| Fits strict compliance | Depends on contract terms | Designed for it |
Business tiers of public AI tools have improved their privacy terms, and for some companies they're enough. The question is whether your contracts, regulators, and clients accept any outside processing at all. If they don't, private AI is the path.
When private AI makes sense
It's a strong fit if most of these are true:
- You handle data you're contractually or legally required to protect
- Your team does a lot of reading, writing, and searching through documents
- You have (or are willing to fund) a server or private cloud setup
- You want AI adopted company-wide, not just by a few people on their own accounts
If you're a small team with no sensitive data, a business plan from a public AI provider is usually simpler and cheaper.
How to start
- List the work. Which tasks eat the most hours: searching for documents, writing reports, answering repeat questions?
- List the limits. What data can never leave, and what do your contracts and regulators require?
- Run a small pilot on one team and one set of documents, and measure the hours saved.
- Then roll out, with sign-on, permissions, and training.
We set up private AI assistants on companies' own servers and private clouds: deployment, connection to your documents, access controls, training, and ongoing support. If public AI is off-limits for your business, tell us what you're working on.
Frequently asked questions
Is a private AI assistant as good as ChatGPT?
For most everyday business work, like drafting, summarizing, and answering questions from your own documents, today's open-weight models running privately are very capable. The very largest public models still lead on some hard reasoning tasks, so it's worth testing on your real work before deciding.
Does private AI need an internet connection?
No. It can run fully offline (air-gapped) on your own hardware. Many companies allow limited internet access for updates, but that's a choice you control.
What does it take to run one?
A server with a suitable GPU or a private cloud account, the model, a secure interface for staff, and a connection to your documents. Setup is a project, not a weekend; ongoing work is mostly monitoring, updates, and tuning.