Published on November 11, 2025 · 8 min read
The Rise of Local AI: Running LLMs on Your Device
Running LLMs locally isn’t just about saving costs — it’s about privacy, speed, and control. Here’s how this shift is reshaping the AI landscape.
– By Thamarai Kannan, AI/ML Developer, Yuvabe Studios
Answer Summary:
Running LLMs locally allows individuals and businesses to use AI directly on their devices without cloud dependency. This approach improves privacy, reduces costs, enables offline usage, and delivers faster responses compared to cloud-based AI models.

Why Running LLMs Locally Is a New Era of AI
When personal computers first arrived in the 1980s, skeptics wondered why anyone would need one at home when powerful mainframes already existed. History proved them wrong — local computing put power directly into the hands of people, sparking a digital revolution. We’re witnessing a similar shift today with local AI. Until recently, interacting with a Large Language Model (LLM) meant sending your queries to the cloud and waiting for a response from a massive server farm. Convenient? Yes. But also dependent, costly, and not always private. Now imagine carrying your own on-device AI assistant inside your laptop — one that works even without Wi-Fi, respects your privacy, and answers instantly. That’s the promise of running LLMs locally, and it’s more than a passing trend. From developers fine-tuning models on their MacBooks to small businesses saving lakhs by avoiding API fees, local AI is quietly democratizing intelligence. At Yuvabe Studios, we’ve been experimenting with this shift, and the results are eye-opening. Running models locally isn’t just a technical novelty — it feels like the early days of the internet, when people realized they could build, create, and control their digital experiences on their own terms.
Why Local AI Matters
1. Privacy by Default
Picture a doctor in a small-town clinic wanting to use AI to draft patient reports. With a cloud model, sensitive data must leave the clinic and travel to remote servers. With private AI running locally, it never leaves the device. That single shift changes the trust equation entirely.
For industries where data security is critical — healthcare, banking, legal services — on-device AI offers peace of mind without sacrificing capability.
2. Cutting Costs Without Losing Capability
One of our startup partners recently shared how their monthly bill for AI API calls was higher than their office rent. Switching to a local AI model cut that expense to almost zero after the initial setup.
For businesses that rely heavily on AI — whether for customer support, research, or content generation — local AI can feel like moving from renting a car by the hour to owning your own vehicle. Once the model is downloaded, it can operate indefinitely without recurring charges.
3. Performance that Feels Personal
Anyone who has asked a cloud AI a question during a video call knows the awkward pause while the model “thinks.” That lag may be just seconds, but it feels longer. On-device LLMs running directly on your GPU or Apple Silicon respond almost instantly.
For developers working in IDEs, or creators editing videos, that speed means flow isn’t interrupted. It makes AI feel less like a tool, and more like a collaborator.
4. AI Without Internet Access.
A field researcher in Ladakh, a teacher in a rural Tamil Nadu classroom, or a journalist reporting from a conflict zone — these are not places where you can always rely on stable connectivity. Local AI doesn’t care. It works offline, making intelligence available anywhere, anytime. By eliminating the need for cloud communication, local AI reduces latency, leading to near-instantaneous responses. This is crucial for real-time applications such as voice assistants, automated coding suggestions, and interactive AI-driven tools.
How to Run LLMs Locally
Step 1: Choose the Right Model
Several local AI models are optimized for on-device execution, balancing performance and hardware requirements. Popular options include:
- LLaMA (Meta AI): Lightweight yet powerful.
- Mistral: Optimized for inference.
- Phi-3 Mini: Compact and efficient.
- GPT-2/3 (smaller variants): Open-source options for mid-range devices.
2. Select the Right Hardware
Running LLMs locally requires sufficient computational power. The ideal setup depends on the model size and complexity:
- CPUs: (smaller variants): Suitable for small models but may struggle with larger ones.
- GPUs: (smaller variants): The real workhorse for speed. Recommended for faster inference, especially for models with billions of parameters.
- Apple Silicon (M1/M2/M3): (smaller variants): Surprisingly optimized for local AI workloads, offering high efficiency.
Step 3: Interacting With Ollama (CLI, Web, Python)
To run LLMs efficiently, several optimised inference techniques can be employed:
- Quantization: (smaller variants): Reduces the model’s precision (e.g., from FP32 to INT8), lowering memory usage and improving speed.
- Low-Rank Adaptation (LoRA): (smaller variants): A fine-tuning method that allows efficient adaptation of large models.
- ONNX and TensorRT: (smaller variants): Frameworks that optimize inference for different hardware architectures and can dramatically improve speed and reduce resource usage.
Step 4: Advanced Customization
Several frameworks support running LLMs locally:
- Ollama: (smaller variants): A streamlined tool for downloading and running models on personal devices.
- LM Studio: (smaller variants): A user-friendly GUI for local AI experimentation.
- Transformers (Hugging Face): (smaller variants): Python library for loading and fine-tuning models, including Hugging Face Transformers local deployments.
- GGUF and GPTQ: (smaller variants): Methods for optimizing model execution on various hardware setups.

Spotlight: Running LLMs with Ollama
When we first tried Ollama at Yuvabe Studios, the setup felt refreshingly straightforward. Within minutes, we were pulling models like LLaMA and running them directly on macOS. For teams or individuals wanting to test-drive local AI without drowning in configuration, Ollama is one of the easiest on-ramps available.

What is Ollama?
Ollama provides a robust environment for running, modifying, and managing LLMs such as LLaMA, Phi, and others optimized for different tasks. It supports multiple operating systems—including macOS, Linux, and Windows—making it widely accessible. This flexibility allows developers to experiment with both open-source and custom models without depending on the cloud.
Getting Started with Ollama
Step 1: Download and Install
Start by downloading Ollama from the official website. Installation is quick and lightweight. Ollama comes with a straightforward command-line interface (CLI), allowing you to load, configure, and run models directly from your machine.
Step 2: Pull The Model(s)
Once installed, pull your desired model from Ollama's Library:
# ollama pull <model> e.g. llama3.2
ollama pull llama3.2Step 3: Run the Model
After pulling, you can run the model immediately:
#ollama run <model> e.g. llama3.2
ollama run llama3.2
Step 4: Interact with the LLM
Ollama gives you multiple ways to interact with your model:
4.1 CLI
You can now interact with the LLM directly through the command-line interface (CLI). Find all the CLI commands at Ollama CLI Reference.
4.2 Web UI
Not a fan of chatting with the command line? Ollama also provides a REST API! You can seamlessly integrate LLM capabilities into your web apps without using the CLI. Just fire up ollama serve to run Ollama without the desktop app.
curl http://localhost:11434/api/chat -d '{
"model": "llama3.2",
"messages": [
{ "role": "user", "content": "Why is the sky blue?" }
]
}'4.3 Python
To run Ollama in Python, you can use the langchain_community library to interact with models like llama3.2. Here’s a quick setup example:
from langchain_community.llms import Ollama
# Initialize Ollama with your chosen model
llm = Ollama(model="llama3.2")
# Invoke the model with a query
response = llm.invoke("What is LLM?")
print(response)Step 5: Exploring Advanced Features
Beyond basic usage, Ollama allows model customization — tuning parameters and tailoring execution for specific use cases. This makes it valuable for developers building AI tools in specialized fields.
Challenges of Running LLMs Locally
Running LLMs locally with Ollama is powerful, but comes with some trade-offs:
- Hardware limitations: Large models may overwhelm average laptops.
- Storage needs: Multi-gigabyte models can quickly consume disk space.
- Optimization learning curve: Extracting maximum performance requires tuning.
The good news? The open-source ecosystem is evolving rapidly. Every few weeks, more efficient, smaller models are released, steadily lowering these barriers and making local AI increasingly practical.
The Future of Local AI
Local AI isn’t just about where models run—it’s about who holds the keys to intelligence. When you run an LLM on your own device, you control the data, the costs, and the speed. It’s AI that bends to your context, not the other way around.
We’ve seen this story before. The internet moved from mainframes to desktops. Music moved from CDs to MP3s. Photography moved from film rolls to smartphones. Each shift brought technology closer to people.
AI is now following the same arc. And just like those earlier revolutions, the winners will be the ones who learn, experiment, and adopt early.
At Yuvabe Studios, we believe this is the next chapter in making technology truly human—intelligence that’s not just powerful, but also personal, private, and always within reach.
Curious how local AI can be tailored for your business? Let’s talk.
Frequently Asked Questions (FAQ)
Here’s Few things you need to know about LLM
Running an LLM locally means executing a large language model directly on your device without sending data to cloud servers.
Local AI offers better privacy, lower long-term costs, and offline access, while cloud AI may be better for very large models or shared infrastructure
We partner with nonprofits, tech companies, sustainability organisations, startups, educational institutions, and mission-driven brands.
Yes. Ollama is an open-source tool that allows users to run and manage LLMs locally.