Sep 16, 2025

Running LLMs Locally: Why It Matters & How to Get Started

Running LLMs Locally: Why It Matters & How to Get Started

Running LLMs Locally: Why It Matters & How to Get Started

Running LLMs Locally: Why It Matters & How to Get Started


For most organizations, generative AI experiments begin in the cloud. But increasingly, we’re seeing companies in healthcare, finance, and other security-conscious industries ask a new question:


Can we bring AI in-house?

With the rise of open-source models and developer tools like Olama, the answer is yes. It’s not just possible, it’s practical.

Why Organizations Are Moving LLMs On-Prem

Whether you're a developer, digital innovation lead, or CTO, running LLMs locally offers compelling benefits:

  1. Privacy: Sensitive queries and data stay in-house, not in third-party cloud logs.

  2. Control: Tailor infrastructure to your needs. Start with a laptop; scale to multi-GPU clusters.

  3. Latency: Eliminate cloud round-trips for fast, real-time response.

  4. Cost: Reduce API/token costs, especially for internal apps or POCs.

  5. Flexibility: Swap or fine-tune models, build on your data, and own your stack.

  6. Offline Use: Keep mission-critical tools running without internet dependency.


These are not just theoretical advantages. Teams across regulated industries are already implementing them.

Behind the Scenes: A Working Demo

In a recent Augusto Digital walkthrough, we showcased what it looks like to run LLMs on a local MacBook using Olama, a developer-friendly framework for local inference.


From TinyLlama to a 20B parameter GPT OSS model, we demonstrated:

  • Performance trade-offs between small and large models

  • GPU usage and memory thresholds

  • Speed benchmarks (tokens per second)

  • Querying models via command line and API


The result? Local LLMs are not only viable. They’re performant, even on modest hardware. For enterprise teams exploring private AI copilots or prototypes, this changes the game.

Use Cases Across Industries

While our roots are in healthcare, the implications of local LLMs span industries:

  • Healthcare: Build secure, in-clinic AI tools that never touch the cloud

  • Financial Services: Run AI workflows with client-sensitive data under tight compliance

  • Manufacturing & Logistics: Use AI in environments with intermittent or restricted connectivity

  • Professional Services: Propose client-facing tools with no risk of data exposure


In every case, the themes are the same: local models offer speed, sovereignty, and security.

What This Means for Innovation Leaders

For digital and innovation leaders, self-hosting models give your teams more flexibility to:

  • Prototype new AI tools quickly

  • Test workflows without legal/security reviews

  • Iterate with custom data without leaving your firewall


It’s not just a technical capability, it’s a strategic enabler.

What’s Next

This article is the first in a series. In our next installment, we’ll explore how to take your local models further:

  • Augmenting LLMs with your private data

  • Enabling RAG-style architectures without cloud dependency

  • Turning demos into scalable internal tools


Want help exploring a local AI architecture for your team? Let’s talk.

Final Thought

Cloud-based AI is powerful, but not always practical. With tools like Olama and a clear plan, your team can bring generative AI on-prem. All on your terms.


Jim’s demo proves the technology is ready. The question is: are you?



Let’s work together.

Partner with Augusto to streamline your digital operations, improve scalability, and enhance user experience. Whether you're facing infrastructure challenges or looking to elevate your digital strategy, our team is ready to help.

Ready to Explore What's Possible?

Start with a no-pressure conversation about your business challenges. We'll share honest insights about where AI might help—and where it might not.

Address

109 Michigan St NW
Suite 427
Grand Rapids, MI 49503

(616) 427-1914

© Augusto Digital 2025

Ready to Explore What's Possible?

Start with a no-pressure conversation about your business challenges. We'll share honest insights about where AI might help—and where it might not.

Address

109 Michigan St NW
Suite 427
Grand Rapids, MI 49503

(616) 427-1914

Links

© Augusto Digital 2025

Ready to Explore What's Possible?

Start with a no-pressure conversation about your business challenges. We'll share honest insights about where AI might help—and where it might not.

Address

109 Michigan St NW
Suite 427
Grand Rapids, MI 49503

(616) 427-1914

Links

© Augusto Digital 2025

Ready to Explore What's Possible?

Start with a no-pressure conversation about your business challenges. We'll share honest insights about where AI might help—and where it might not.

Address

109 Michigan St NW
Suite 427
Grand Rapids, MI 49503

(616) 427-1914

© Augusto Digital 2025