Offline-AI as an Opportunity for Companies of All Sizes

An Offline-AI often delivers better results than the best AI models, full control over data, and is in many cases significantly cheaper than solutions with ChatGPT or Microsoft Azure. What is an Offline-AI and what opportunities does it offer?

The Future of Artificial Intelligence

This post describes a way for companies to achieve very good results with their own AI system and also have full control over their own data. Even with intensive use of this company AI, costs remain low.

This form of AI is referred to here as Offline-AI.

Advantages of Offline-AI

Capability

An Offline-AI is characterized by its performance capabilities. It can process and analyze large amounts of data to gain valuable insights. This allows companies to make better decisions and optimize processes. Through the combination with conventional methods, the AI can also solve complex tasks and make predictions. Especially challenging problem statements can be solved by adding procedures from Machine Learning.

Example:

A company participates in tendering and has collected a series of data from previous tenders. For the next tender, the company now wants to know which bid price will likely lead to an award.

This type of problem can be solved much better by an Offline-AI than by general intelligences like ChatGPT. The reasons are particularly:

• Specific task description that cannot be solved universally (and if it ever can, then humans will no longer be the most intelligent life form on this planet). .
• Forms of text and terms specific to your company and industry.
• Large amounts of data need to flow into the AI. This raises the question of costs with cloud services like Microsoft Azure or the ChatGPT API.
• Possibly: Need for confidentiality of your data or privacy of your data.

Rule of thumb: The high performance of Offline-AI comes into play above all in application cases that do not seem as trivial as entering a text or fewer texts into a chatbox.

Data control

An Offline-AI protects the data that belongs to you. This can be patent applications or trade secrets. Often, confidentiality agreements have also been made for certain data. This data should better not end up with American companies (Cloud Act, EO 12333, FISA 702). Some customers do not want their data, which is given to you, to end up with third parties such as Google, Microsoft, Meta or OpenAI. All these companies use user data to train their own AI. .

An Offline-AI holds your data. That's why this AI is called that: it can run without an internet connection in principle. This means all data streams are fully controllable. You decide which data flows where. Of course, the AI system has access to the internet if necessary. For example, when videos should be automatically downloaded for the AI or when the AI should conduct internet research.

Thus many legal questions are resolved. Contracts for data processing with American corporations no longer need to be concluded and no longer legally evaluated. Opt-outs due to the use of input data by the AI provider are eliminated.

Because an Offline-AI does not have to reproduce previously read content, problems with copyright or the GDPR can be avoided. A generative AI like ChatGPT, which is not "gated," is on the other hand almost a guarantee of copyright infringement.

Affordable costs

A company-owned Offline-AI is not only powerful and secure, but also cost-effective. Once set up, it doesn't matter if your AI system runs only 3 hours a week or 24 hours a day and every day of the year with full load.

Someone who has looked at the costs of cloud platforms like Azure might find this cost aspect particularly appealing.

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Even the use of the ChatGPT-API raises questions about costs, although it can be described as low-priced. Because an AI is somewhat vague, it is not clear a priori how often and with what data material the AI must be called up for a desired result. Therefore, it doesn't matter whether 100 calls cost 1 euro or 10 euros. The uncertainty about the costs alone is a deterrent.

If a system has to process many data, such as your company's documents or all Hessian laws, then frequent calls to a very favorable API will quickly become expensive and unplannable.

From a cost perspective, another advantage of Offline-AI for businesses emerges.

Innovation power

Innovation is a process. A good process runs as continuously and whenever necessary.

A 24/7 operation is the perfect prerequisite for innovation. 24/7 means that the company's AI is always and fully available, and works best permanently.

Technically, all cloud services can be used permanently. However, the costs are often outrageously high and often unpredictable. Besides your money, you also hand over your data to the cloud provider, who doesn't even say thank you for it.

An Offline-AI always costs the same amount, regardless of how often it is used. The costs essentially amount to:

• Hardware Procurement: Either rental or purchase (own data center or colocation, thus integrating own servers into a foreign data center). A professional AI server is already available for 5,000 euros. When renting, costs of under 1,000 euros per month arise. For some AI application cases, the costs for server rental are even negligible.
• Installation System: This one-time expenditure depends on your use case. It is manageable. If you rent a ready-made AI server, costs are even lower.
• Programming AI