Cloud legal AI tools or local AI?
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Cloud legal AI tools or local AI? Cloud tools give legal-specific features run by a vendor. Local AI runs open models on hardware the firm owns, so client documents are not sent to an AI provider. Choose by sensitivity and the features you need.
Olares One → Private AI for law firms → Document Q&A · drafting · local models → Client data stays in the firm
How do cloud legal AI tools and local AI differ?
The two differ in where the work happens and who builds the features. Cloud products run on systems the vendor operates, under the vendor's terms. Local AI runs open models on a server in the firm's office, and the firm writes its own prompts and checklists.
CoCounsel, Lexis+ AI with Protégé, Harvey and Spellbook are examples of cloud-based legal AI products.
How do they compare side by side?
Side by side, the main differences are where documents are processed, who sets the data terms, who builds legal-specific features, whether the tool works without internet and how it is paid for. The table sets them out. We make no claims about any named vendor's data handling, features or prices.
| Question | Cloud legal AI tool | Local AI server |
|---|---|---|
| Where is the document processed? | On systems the vendor operates | On the firm's server |
| Who sets the data terms? | The vendor contract | The firm's own policy |
| Legal-specific features | Built by the vendor | Built by the firm with prompts and checklists |
| Works without internet | No | Yes, after setup, on Olares One |
| Cost | Ask each vendor | Hardware purchase, such as Olares One at 4,999 USD list |
When does each make sense?
A cloud legal AI tool makes sense when the firm wants features a vendor has built and is satisfied with the vendor's terms after reading them. A local server makes sense when client documents should stay on firm hardware, or when a client or matter rules out outside processing.
We would keep the most sensitive matters on local AI and judge cloud tools one at a time, after reading their terms and security documents against your bar's guidance. A firm whose work depends on a vendor's research content would weigh it the other way.
What does the local side look like on Olares One?
On the local side, Olares One is our editorial choice. Ollama and Open WebUI install from Olares Market, each person has an account, and according to Olares' FAQ it can work entirely offline after a one-time activation. By an approximate rule, its 24 GB of VRAM limits it to models up to about 32B at 4-bit.
Test it on contract review and document Q&A before deciding, and record which work goes where in your AI policy.
Questions & answers
Is CoCounsel or Harvey private enough for client data?
We do not assess any vendor's data handling. Read each vendor's terms and security documents, and check them against your bar's guidance.
Can a small firm afford local AI?
Olares One lists at 4,999 USD on Olares' shop as a one-time hardware cost. Compare that with the subscription quotes cloud vendors give you for the same number of users.
Sources for this entry
- Olares One: maker's page (Maker-published)
- Olares One FAQ (Olares docs) (Company-published)
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Cite this entry
Best Private AI for Lawyers. “Cloud legal AI tools or local AI?.” Content reviewed 13 November 2026.
https://bestprivateaiforlawyers.com/cloud-legal-ai-vs-local-ai/