Which Companies Provide Local AI Solutions for Data Privacy?
· By Michel Valenzuela, Founder of Daryl
LM Studio, Jan, and Ollama provide tools for running AI models locally. With a local model, your computer processes the conversation instead of sending it to a hosted AI model.
Daryl, currently in development for Mac, is being built around local core conversations, voice interaction, and help thinking through decisions.
These products offer different experiences. Some give you tools to download and run models. Others focus on making AI easier to use for everyday work.
If privacy is your priority, the first question is straightforward: Where does this particular conversation get processed?
What does “local AI” mean for data privacy?
Local AI means the model runs on your device, or on infrastructure you control.
For a personal computer, that can mean downloading a model and using it without sending your prompts to a remote inference service.
This changes the path your information takes.
Consider a conversation about a confidential project. With a hosted model, the service needs to receive information to generate its response. With a model running on your Mac, that processing can happen on the Mac itself.
However, an application can support both local and cloud models. Installing a desktop app does not establish which one you are using.
You need to check the selected model and the features involved.
Which local AI providers should you know about?
Here are three established options, alongside the experience we are building with Daryl.
| Product | What it provides | Privacy distinction |
|---|---|---|
| LM Studio | A desktop application for downloading and running local models | Its documented offline workflows include local conversations and document processing |
| Jan | A desktop AI application with local model support and optional remote providers | Local models run on your computer; remote API use sends information to the selected provider |
| Ollama | Tools for running models locally, with cloud models also available | Local and cloud execution are different modes with different processing locations |
| Daryl, forthcoming | A personal AI for Mac focused on conversation and decision assistance | Core conversations are being built to run locally |
This is a starting point for comparing approaches. Your choice also depends on your computer, the models you want to use, and how much setup you are comfortable managing.
How does LM Studio approach local processing?
LM Studio lets you download models and run them on your computer.
Its documentation states that it can operate entirely offline once the necessary model files are available. It also documents local processing for supported document conversations, so the documents used in that workflow stay on your machine.
That makes it worth considering if you want to explore local models and work with documents.
There is still a setup process. You need to select a model that suits your hardware and understand which features you are using.
Model discovery, downloads, and updates are separate from generating a response locally.
How does Jan approach privacy?
Jan supports local models that run on your own computer without requiring a remote model API.
It also supports remote providers.
That flexibility is useful, but it creates a distinction you need to keep track of. A local conversation and a conversation through a remote API may appear inside the same application while sending information through different paths.
Jan’s privacy guidance explicitly explains that remote API use sends data to the provider’s servers.
When comparing applications like this, ask which provider is active for the conversation you are about to start.
How does Ollama fit into a private AI setup?
Ollama provides a way to run models locally and connect them to other applications or workflows.
It also offers cloud models. Its privacy policy distinguishes local operation from cloud processing.
For someone building a custom setup, that flexibility can be valuable. For someone seeking a simple personal assistant, it may be one part of the setup rather than the complete experience.
If your goal is local processing, confirm that your chosen model runs locally. A provider’s support for local AI does not mean every model it offers runs on your device.
Is “not used for training” the same as local AI?
No.
A service can process a conversation on remote servers while committing not to use it for model training.
That commitment addresses one question: how the provider uses the information after receiving it.
Local processing addresses another: whether the information needs to be sent to that provider for the response in the first place.
Both are relevant when evaluating privacy. They describe different properties.
The same applies to retention. Where a conversation is processed, how long it is stored, and whether it is used for training are separate questions.
What should you ask before choosing a privacy-focused AI tool?
You should be able to get clear answers to these questions:
- Where does the selected model process my conversation?
- Where are my prompts, responses, and uploaded files stored?
- Which features contact external services?
- Can I use the core experience offline after setup?
- Can I review and delete the information the application saves?
You do not need an engineering background to ask them.
A useful explanation should connect each feature to what happens to your information. For example, “this conversation runs locally” is more informative than a broad claim that the entire product is private.
Where does Daryl fit?
We are building Daryl for people who want a personal AI on their Mac without making model configuration part of their day.
The initial focus is local conversation, voice and typing, and decision assistance.
You might want to talk through a difficult choice, clarify an idea, or compare possible next steps. Our goal is to make that interaction approachable while keeping core processing on your computer.
Daryl is still in development. Features such as memory and continuity need to be assessed against the capabilities and controls available when they launch.
Privacy should be understandable in the experience itself.
Frequently asked questions
Can local AI work without the internet?
Yes. A downloaded model can generate responses locally without an internet connection. Downloads and features that access online information still need connectivity.
Does local AI mean nothing is saved?
No. An application may save conversation history, settings, or logs on your device. Local processing and local storage are separate aspects of the product.
Is local AI automatically secure?
No. Keeping processing local reduces reliance on a remote model service, but your device, backups, application settings, and connected features still matter.
Is Daryl available now?
Daryl is currently in development for Mac. You can sign up to receive the launch announcement.
Make privacy part of the buying decision
Start by deciding where you want your conversations processed. Then compare the products that support that requirement.
From there, look at usability. The right tool should let you understand its settings and use it comfortably in your everyday work.
That combination is central to what we are building with Daryl.
Meet Daryl and get the launch announcement