- Home
- Practical guides
- Choose between a cloud AI API and a hosted model
AI & privacy
Choose between a cloud AI API and a hosted model
Confidentiality depends on the complete data journey, including access, logs, backups and supplier terms. A private label alone does not explain what is transmitted or who can read it.
In this guide
- Classify data and intended use
- Treat a managed API as a dependency
- Assess hosted-model operating work
- Compare options on the same tasks
- Assign responsibilities and preserve options
Classify data and intended use
Identify information needed for each task and who may access it. Public copy, internal procedures and customer records need different decisions.
Separate processing, retention and possible service-improvement use. Check the actual product and account terms rather than assuming one brand has identical conditions everywhere.
Treat a managed API as a dependency
A managed API can reduce model deployment work, while introducing supplier availability, pricing and policy dependencies. Define fallback for slow or unavailable service.
Check offered processing locations, supplier access and deletion arrangements with the people responsible for the data and applicable requirements.
Assess hosted-model operating work
Hosting gives more environmental choice but requires suitable resources and an operating team. Capacity depends on models, volumes and response expectations.
Protect interfaces, administrator access and backups. Review licences and external components: local installation does not by itself prove that nothing is transmitted elsewhere.
Compare options on the same tasks
Use identical examples and acceptance criteria for quality, omissions, latency and correction effort. Infrastructure control is not enough if the result fails the task.
Test required languages and retrieval. Make any delegation to external services explicit because the data journey may change by task.
Assign responsibilities and preserve options
Name update, monitoring, incident and cost owners. Version model configurations and re-evaluate important behaviour after changes.
A custom boundary can limit transmitted information and make supplier replacement easier, but changes still require testing of results and operating characteristics.
Your checklist
- Classify information and permissions.
- Check the actual service terms.
- Map processing, retention and dependencies.
- Evaluate equal examples.
- Assign operation and version control.
Frequently asked questions
Is a local model automatically private?
No. Check interfaces, logs, accounts, architecture and external components as well as execution location.
Can suppliers be changed later?
Good boundaries and organised data help, but quality, performance and options differ. Test any migration.
A project to explore
Hush Messenger
Hush Messenger’s attention to confidentiality and access helps frame the questions for AI projects, while the necessary technical mechanisms differ.
Explore the project