↰ Home // lokale-ki · ed. 2026.08

Your data. Your hardware. Your AI.

On-premises AI systems run entirely on your own servers or machines. Your data never leaves your company at any point – unlike cloud services, where your input is processed on someone else's servers. We advise, plan and implement AI solutions that work exactly where they belong: with you.

On-premises AI server with data-security imagery – GDPR-compliant AI implementation on your own hardware by PRODOC Digital
100 % GDPR-compliant
No data in the cloud
No recurring API costs
TÜV-certified AI consulting
// system · architecture
// input
Your data
on-prem
docs · audio · db
// processor
Local LLM
llama-3.1-8b
vram 16 GB
// output
Answer + audit
append-only log
retain 90d
Fundamentals

What does “on-premises AI” actually mean?

On-premises AI means the AI models run on hardware that belongs to you – in your server room, on your workstations, or on dedicated machines in your network. Nothing goes to OpenAI, Google, Microsoft or any other external cloud provider.

That has three immediate consequences:

Data protection

Your data never leaves your company. No processing on US servers, no questions about the legal basis for data exports under Art. 6 GDPR, no dependence on the privacy policies of American corporations.

Costs

No recurring API fees. You invest once in hardware and setup, after which your systems run without monthly billing per token, per request or per user.

Control

You decide which models run, how they are configured and who has access. No cloud provider can change features, raise prices or discontinue the service.

An honest comparison

On-premises AI vs cloud AI – an honest comparison

On-premises AI is not always the better choice. There are scenarios where cloud services make more sense. That is why we advise honestly – even when it means advising you against our own service.

CriterionOn-premises AICloud AI (e.g. ChatGPT, Gemini)
Data protectionData stays inside the companyData is processed externally
GDPR complianceFully givenDepends on provider and configuration
Running costsNo API costs after setupBilled per token / per user
Model qualityVery good for specialised tasksBroader, often stronger on general tasks
AdaptabilityFull (fine-tuning, RAG, your own data)Limited (prompt engineering, limited adaptation)
Hardware investmentOne-off, predictableNo hardware of your own needed
ScalingBounded by your own hardwarePractically unlimited
DependencyNo external dependencyProvider can change prices, features, terms

If your data is sensitive, if compliance requirements apply, or if you want to stay independent in the long run: on-premises AI. If you want to start quickly, have little IT infrastructure, or are solving general tasks: cloud AI may make more sense.

Services

What we build for you

From transcription through to a complex document pipeline: every solution runs entirely on your own infrastructure.

On-premises transcription: AI-assisted conversion of audio into text – entirely on your own hardware, without a cloud API
Service 1

On-premises transcription

Speech to text, without the cloud

Meetings, interviews, phone calls – transcribed entirely on your hardware. No audio leaves your company. The basis is Whisper from OpenAI, run on your premises via Ollama or a dedicated Whisper instance.

Typical applications: producing meeting minutes automatically · medical documentation · quality assurance interviews · capturing knowledge from experienced colleagues

AI-assisted translation for specialist documents – on-premises, GDPR-compliant, with company-specific terminology
Service 2

AI-assisted translation

Specialist documents, processed on your premises

Technical documentation, contracts, patents, regulatory submissions – translated with on-premises language models, tuned to your specialist terminology. No document leaves your company.

Our particular advantage: as a former translation company with over 30 years of experience across 30+ languages, we know when AI translation is good enough – and when it is not.

Typical applications: technical documentation into several languages · CE declarations of conformity · patent applications · multilingual knowledge bases

On-premises RAG systems (retrieval-augmented generation): internal company knowledge from your own documents, made searchable with AI
Service 3

RAG systems

Your documents, intelligently searchable

Retrieval-augmented generation connects your existing documents to an on-premises language model. The result: an AI assistant that answers questions about your own material – precisely, with sources, and entirely on your premises.

Typical applications: knowledge management and internal search · onboarding new colleagues · technical support · compliance checks · patent research

On-premises fine-tuning: specialised AI models trained on your own data – without that data leaving the company
Service 4

Fine-tuning

Training AI models on your specialist knowledge

When a pre-trained model does not command your specialist terminology or does not match your particular task profile: fine-tuning on your own company data makes the model your model.

Typical applications: domain-specific text generation · specialised translation with company glossaries · document classification · industry-specific assistants

Document pipelines with on-premises AI: automatic capture, classification and structuring of business documents
Service 5

Document pipelines

Automation without the detour through the cloud

Classification, extraction, summarisation, routing – automated entirely on your premises. Incoming documents are processed without ever touching an external system.

Typical applications: automatic processing of incoming invoices · contract management · preparing regulatory submissions · archiving with AI metadata

Your way in

How do you start? With an IT infrastructure assessment.

Before we implement anything, we understand where you stand. The assessment takes 1–3 days and produces a concrete plan.

IT infrastructure assessment for on-premises AI: concept, hardware requirements and a concrete delivery plan in one to three days
1

Stocktaking of your IT landscape

Hardware, network, existing systems, security architecture – we record what is there.

2

Requirements analysis

Which use cases should AI support? Which data is involved? Which compliance requirements apply?

3

Hardware appraisal

Is your existing hardware enough? What would need adding? We appraise the options and costs realistically.

4

Findings report

You receive a written report with concrete recommendations, a schedule and a cost range.

Duration: 1–3 days Result: a concrete plan
Request an assessment →
Hardware

What hardware do I need for on-premises AI?

What you need depends on the use case. This overview gives you a first orientation.

RequirementEntry levelProfessionalEnterprise
MacM1+ with 32 GB RAMMac Studio with 64–128 GB RAMMac Studio cluster or dedicated server
PCGPU with 16 GB VRAMGPU with 24+ GB VRAM (e.g. RTX 4090)Multi-GPU setup or dedicated server
ServerHetzner GPU server (hosted in DE)On-premises server with professional GPUs
Suitable forTranscription, simple RAG systems, first trialsRAG over larger volumes, fine-tuning, translationProduction systems with high throughput, many concurrent users

These figures are guide values. What you actually need depends on model size, the number of concurrent users and the use case. The assessment settles what makes sense for your project.

// editorial
Our approach

Straight advice – even when the cloud is the better choice

We do not sell on-premises AI at any price. If cloud AI makes more sense for your use case – because you want to start quickly, process no sensitive data, or because model quality is decisive – we will say so. A position, not a sale.

“Buy or build? I guide strategic AI decisions honestly – even when the answer is ‘cloud AI is enough'. A position, not a sale.”

Stefan Weimar
Stefan WeimarPRODOC Digital
How it runs

How does an on-premises AI project run?

// 6 steps
01
// discovery call

Free discovery call

Thirty minutes – you describe what you need, we appraise feasibility and effort. No quote, no obligation.

02
// assessment

IT infrastructure assessment

1–3 days of stocktaking: hardware, requirements, data protection context. Result: a written report with a concrete plan.

03
// architecture

Design & architecture

Choosing the right model (Whisper, Llama, Mistral, Qwen and others), system architecture, data protection concept, interface definition.

04
// implementation

Implementation

Setting up the infrastructure (Ollama, AnythingLLM, custom pipelines), configuration, integration into existing systems.

05
// go-live

Testing & go-live

Quality checks, user testing with your real data, controlled go-live.

06
// support

Handover & support

Full documentation, training for your people, an optional support contract for ongoing operation.

From practice

On-premises AI in practice

Three examples from our consulting work – all delivered without cloud dependency.

Company management

Producing confidential board minutes automatically

Challenge: board meetings with highly confidential content – external transcription services were out of the question.
Solution: an on-premises Whisper-based transcription system on a Mac Studio, entirely inside the company network.
Result: complete minutes in minutes, no data leaving the building, GDPR-compliant.
Healthcare

Individual therapy recommendations with on-premises AI

Challenge: therapists wanted AI-assisted recommendations – using patient data that must not leave the building.
Solution: a proof of concept with an on-premises AI system at the Koerting Institut – entirely on site.
Result: proof of technical feasibility for individualised therapy planning under data protection constraints.
Technical translation

Specialist translation into five languages with no data exchange

Challenge: specialised technical documentation in five languages – with company-specific terminology that should not be fed into cloud services.
Solution: an on-premises LLM with Ollama and domain-specific fine-tuning on company glossaries.
Result: consistent terminology, full control of the data, scalable to further languages.
Our particular advantage

Why a former translation company builds better AI

Thirty years of experience in technical documentation and specialist translation for regulated industries make the difference. We know when language has to be precise – and when AI helps with that.

30+ languages

Expert appraisal of AI output in more than 30 languages – we spot quality problems that purely technical tools miss.

ISO 17100 certified

The international standard for professional translation services – quality assurance at the highest level.

Regulated industries

Thirty years of experience in industry, medicine, law and public administration – we know the compliance requirements that can make AI projects fail.

TÜV-certified AI consulting

Stefan Weimar is a TÜV-certified AI manager – your point of contact combines technical depth with a strategic view.

Frequently asked questions about on-premises AI solutions

// FAQ

On-premises AI means the AI models run on hardware that belongs to you – in your server room, on your workstations, or on dedicated machines in your network. Nothing goes to OpenAI, Google, Microsoft or any other external cloud provider. Your data never leaves your company at any point.

For many specialised tasks in regulated industries: yes. Transcription, specialised translation, RAG systems over your own documents – here on-premises models often suit your specific needs better. For general conversation and broad knowledge questions, the large cloud models still have the edge. We will tell you honestly which approach makes more sense for your particular use case.

It depends on the use case. Entry-level setups for transcription and simple RAG systems run on a current MacBook M3 or a PC with a good GPU (from 16 GB of VRAM). For production systems with high throughput and many concurrent users we recommend dedicated hardware. The IT infrastructure assessment settles what makes sense for your project – and what it would cost.

After setup: close to zero. No API fees, no monthly subscription, no charge per token or request. You pay once for consulting, setup and, where needed, new hardware – after that the system runs on your own infrastructure with no ongoing third-party costs.

A first proof of concept is often possible in 2–4 weeks – a simple transcription system, say, or a RAG chatbot over your documents. A production-ready solution with integration into existing systems, user testing and documentation takes 4–12 weeks depending on complexity. The assessment produces a concrete schedule.

On-premises AI systems can be updated with new models at any time. The open model ecosystem (Ollama, llama.cpp, LM Studio) is growing quickly – more capable models appear regularly and can be brought in without provider lock-in. You are not tied to a vendor who can raise prices or withdraw features.

No – but that is where we are strongest. Our experience in industry, healthcare, law and public administration makes us a dependable partner where data protection and compliance allow no compromises. Companies outside regulated industries benefit from running AI on their own premises too – for instance where trade secrets or client-confidential data are processed.

// Discovery call · 30 min

Let us find out what is possible.

In the free discovery call we work out whether and how on-premises AI makes sense in your situation. Thirty minutes that give you clarity.

Or write to us directly: info@prodoc.de