Private AI

Private AI: Private AI in Switzerland: definition, variants, costs, decision path.

What Private AI means, which operating models exist, what they cost and how a company decides – for management teams and IT managers in Switzerland.

In short: Private AI means that models, knowledge and agents run in a controlled environment – on your own servers, in a Swiss private cloud or a mix of both. It is an operating model, not a specific technology.

Explanation

Control over data and operation – without giving up AI.

Public AI services process input on third-party infrastructure, sometimes outside Switzerland. Whether a use is permitted depends on the type of data, purpose, provider, contract and data location. Private AI can move processing into a controlled environment.

An application layer that is separate from the model can make switching easier. Testing, interfaces and contractual dependencies still need to be checked.

Private AI
Variants

Four operating models compared.

OptionDataCostFits when
On-premiseon your own premisesHardware + operation, no usage feeshighly sensitive data, existing infrastructure
Swiss private clouddedicated in a Swiss data centremonthly, without your own hardwareControl without a server room
Hybridsensitive data local, non-critical data externalMixData protection and reach
Controlled cloudwith the provider, under contractusage-basednon-critical tasks, quick start
Decision guide

When Private AI makes sense.

  • Data flows must be limited because of professional secrecy, Switzerland’s Federal Act on Data Protection (FADP) or contracts → consider operation on your own servers or a private cloud.
  • Only some tasks are sensitive → hybrid with routing per data class.
  • No sensitive data, quick start → controlled cloud, switch later.
  • Separate the application layer and the model where possible; any switch still needs to be checked and tested.
Sources

What this article is based on.

  • Federal Act on Data Protection (FADP) of 25 September 2020
  • Federal Data Protection and Information Commissioner (FDPIC), “AI and data protection”: https://www.edoeb.admin.ch/de/ki-und-datenschutz
  • Own project experience at Swiss AI Labs; no external study
Frequently asked questions

Frequently asked questions: Private AI

Is Private AI worse?

For classification, extraction, knowledge search and summarisation, local models are usually sufficient. Where an external model is better, a hybrid setup can use it for non-critical data.

Do we need our own GPUs?

Not necessarily: a Swiss private cloud provides them.

Next step

Have a specific process assessed.

The AI potential assessment examines the benefits, prerequisites and risks of the process.