ai /Practical AI0 / 55 lessons complete

LEVEL 06 · LESSON 47

Ollama

Check where the chosen model actually runs, not just the name of the software you use.

What it is

Ollama is software for using supported models through local applications and APIs. Its ecosystem includes both locally run and cloud model options.

Why it matters

It can make a small local-model experiment easier to start, while the choice of model and deployment still determines the practical result.

A business example

A team prototypes an internal summarization workflow on a workstation with a locally running model. It verifies the actual request path before using private source material.

How it actually works

For a local setup, a model is downloaded and run using the machine’s available resources. An application sends requests through an interface and receives generated responses. Performance depends on the model and hardware. Cloud options have a different data path, so explicitly check the chosen configuration. A prototype also needs evaluation and operating controls before it becomes a shared business service.

A common misconception

Using Ollama does not by itself mean every request stays on your computer; that depends on the selected model and configuration.

ONE SENTENCE TO REMEMBER

Check where the chosen model actually runs, not just the name of the software you use.

CHECK YOUR UNDERSTANDING

A team uses Ollama for a prototype and tells legal that “all data stays on our laptops.” What should they verify?

Show the answer

Answer: B.

Ollama’s ecosystem includes both locally run and cloud model options. Using Ollama does not by itself mean every request stays on your computer; check where the chosen model actually runs.

Take it into your next meeting

What evidence would confirm that your prototype’s requests are processed locally?

Go to the source

Ollama documentation ↗Product references checked September 2026.

One more concept, understood.

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