On-premise AI
Definition
On-premise AI refers to the deployment of AI systems entirely within an organization's own infrastructure, where all data processing, model inference, and storage occur on locally controlled hardware rather than third-party cloud services.
Purpose
The purpose of on-premise AI is to maintain complete control over data, ensure regulatory compliance, reduce external dependencies, and enable operation in air-gapped or security-sensitive environments.
Key Characteristics
- Full data sovereignty with no external data transmission
- Compliance with strict data residency and privacy regulations
- Independence from third-party cloud service availability
- Predictable costs without usage-based cloud pricing
- Ability to operate in isolated or classified environments
Usage in Practice
In practice, on-premise AI is used by organizations in regulated industries such as finance, healthcare, defense, and government where data cannot leave organizational boundaries or where cloud usage is prohibited by policy or regulation.
One implementation of this concept is offered by Kenaz through the Edge AI Integration service.