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“Local AI” tells you where a model performs inference; it does not prove that setup, surrounding code context, telemetry, logs, or a fallback request stay on the device. To know what leaves a particular app, you need its exact version and configuration plus evidence of the route it actually took. The documented examples below explain what to check—not a firsthand trace of any one app.

What “local” does—and does not—tell you

Local inference means the model computes on the device. It is only one stage in an AI feature’s data flow. An app may need a network connection to obtain a model, may refresh catalog information, may send context to an AI provider, or may offer a separately configured cloud fallback. Those paths are distinct; the existence of one does not establish that the others are active.

Microsoft’s hybrid-design guidance recommends checking whether a local model is ready and using a cloud endpoint only when the user and organization permit data to leave the device. If cloud use is not permitted, the app should explain the requirement and disable or hide the feature. Microsoft also recommends recording which route was used and readiness or fallback errors without recording prompts or sensitive content unless approved. Microsoft’s cloud-versus-local AI guidance describes that design approach.

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Separate the stages of the data flow

Model download and catalog updates

Microsoft says Foundry Local runs inference on-device once a model has been downloaded and cached. Its initial model download requires internet access; optional model-catalog refreshes may also occur, while cached catalog information can support offline inference. Microsoft summarizes Foundry Local’s network activity this way: “The only network traffic is the initial model download and optional catalog metadata refreshes.” That statement concerns Foundry Local, not every feature described as local. Microsoft’s Windows AI FAQ also says Foundry Local can select a Qualcomm NPU, DirectX 12 GPU through WinML/DirectML, NVIDIA GPU through CUDA, or CPU fallback for execution.

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Inference request and fallback

A local model may be unavailable because it is not installed, is not ready, or does not support the requested capability. An app might then refuse the request, ask for permission to download or change routes, or use a cloud endpoint if that is allowed by its configuration. These are possible design states, not proof that an unspecified app silently sends a request to the cloud. The key questions are what triggers fallback, whether the route is fail-closed or fail-open, and whether the user or administrator can block cloud use.

Prompt context

The data sent for a coding request can exceed the text a user typed. For Gemini Code Assist Standard and Enterprise, Google lists conversation history, snippets from open files, snippets from adjacent files, and cursor location among the Customer Data that may be processed. Google says the service is stateless and does not store prompts and responses in Google Cloud by default, though customers can configure Cloud Logging. Its documentation says processing typically occurs at the closest data center but does not guarantee regional processing. These details apply to the specified Gemini Code Assist editions; they do not establish another product’s context handling or processing location. Google’s security, privacy, and compliance documentation sets out that scope.

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JetBrains documents that AI Assistant may send code fragments and context such as file types and frameworks to its LLM provider. Its 2026.2 documentation also describes opt-in detailed AI usage collection, which includes full communication and is disabled by default in the documentation reviewed, and a session request log named ai-assistant-requests.md that users can inspect. Check the installed version and license settings rather than assuming those defaults describe every installation. JetBrains’ AI Assistant data-handling documentation explains the product-specific details.

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Telemetry and content logs

Telemetry can record events without recording the request itself. Google’s Gemini Code Assist documentation gives examples such as a request event without request contents, a response event, user reactions, accepted-suggestion character counts, and interface interactions. Google says engineers can access this telemetry to support product improvements. Google’s telemetry documentation describes those examples.

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Prompt and response logging is a separate choice. Google documents optional Cloud Logging for prompts and responses, context, and metadata such as telemetry and accepted lines of code. When enabled, data is sent to Cloud Logging for organization administrators. Google says prompts and responses are not used to train its model whether or not logging is enabled. Do not treat that statement about training as a claim that no data is transmitted or logged. Google’s logging documentation explains the configurable logs.

Provider routes and proxies

Some products insert a proxy or intermediary into the request path. Codag’s documentation, for example, says its local proxy routes model traffic directly to the user’s provider, while eligible large tool outputs plus minimum task context may go to Codag for transient processing. It says source code, diffs, configuration, and unrecognized content pass through unchanged, and describes operational metrics as contentless. These are Codag’s own claims about its product, not independent validation or a general description of local AI tools. Codag’s privacy and data-flow documentation states its account.

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How to verify an app’s actual route

Documentation tells you what a vendor says a product can or should do. A claim about what one particular run transmitted needs evidence tied to that run: the product and version, relevant settings, the local model’s readiness, and a trace or log that identifies the destination and, where available, request content. Network activity alone may show a connection without revealing what payload it carried; a request log may expose content but not prove every network destination. Use both kinds of evidence where available, and distinguish observations from documented behavior.

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  1. Record the exact setup. Note the app name and version, model and whether it is downloaded and ready, account or license edition, privacy settings, logging settings, and whether cloud use is allowed by the organization.
  2. Identify the route decision. Find the documented conditions for local readiness and fallback. Determine whether a missing or unsupported local model blocks the request, prompts for approval, or can trigger cloud inference.
  3. Inspect the context boundary. Check whether the app sends only the prompt or also conversation history, open or adjacent files, cursor position, tool output, file types, or framework information. Avoid testing with sensitive material until you understand that boundary.
  4. Check each destination separately. Distinguish model-provider traffic from downloads, catalog refreshes, product telemetry, organization logging, and any proxy processing. Confirm which settings control each destination.
  5. Run a controlled check. With approved test content, compare behavior when the local model is ready and when it is unavailable, and repeat with cloud fallback permitted and blocked if the app supports those states. Record route indicators and logs; do not infer payload contents from a connection alone.
  6. Choose a policy and verify it. If sensitive data must not leave the device, disable cloud routing or select a documented fail-closed mode, then test that an unavailable local model produces an error rather than a cloud request.

Questions to ask before using local-first AI with sensitive material

  • What exact condition triggers cloud fallback, and can an administrator disable it?
  • Does the request include only typed text, or also conversation history, source snippets, cursor location, tool output, or other context?
  • Are model downloads and catalog refreshes separate from inference, and can the app operate from cached resources offline?
  • Which telemetry fields contain event metadata, and do any logs store full prompts, responses, or context? Where are those logs sent and who can access them?
  • Which provider or intermediary receives each category of data, and what processing-region and retention commitments apply to this edition and configuration?
  • Can users inspect a request log or route indicator, and what evidence demonstrates that cloud routing is blocked?

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