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Local AI28 May 2026·2 min read

Running AI Locally with Ollama

Set up private, low-cost AI on your own machine and stop paying for tasks that don't need the cloud.

Not every AI task needs a frontier model or a cloud round-trip. Drafting an email, summarizing a document, renaming a batch of files, asking a quick coding question — a small model running on your own laptop handles all of these well, privately, and for free.

Ollama is the simplest way to get there. It runs open models locally with a single command, and exposes them through an API that most AI tools already know how to talk to.

Why bother running AI locally

  • Cost. Recurring subscriptions add up. Local inference is free after the download.
  • Privacy. Your prompts and documents never leave your machine.
  • Availability. It works offline, on a plane, behind a firewall.
  • Learning. Running the model yourself demystifies what's actually happening.

This isn't about replacing the big hosted models — it's about not reaching for them when something smaller does the job.

The five-minute setup

  1. Install Ollama from the official site for your OS.

  2. Pull a model. Start small so it runs comfortably:

    ollama pull llama3.2
    
  3. Chat with it right from the terminal:

    ollama run llama3.2
    

That's a working local assistant. No account, no API key.

Wiring it into your workflow

Ollama serves an API at http://localhost:11434. That means any editor, script, or app that supports a custom endpoint can point at your local model — note-takers, code editors, and command-line tools included.

The goal isn't to run everything locally. It's to know which tasks can run locally — and quietly move them off your bill.

Choosing a model size

A rough rule: pick the smallest model that's still good enough for the task. Bigger models are slower and need more memory; for everyday drafting and summarizing, a small or mid-size model is usually indistinguishable in practice.

Start with one small model, use it for a week, and only reach for something larger when you actually hit its limits.

@aicroft

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