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PrivacyBenchmarks
Local AI vs. OpenAI for Dutch Businesses
2025-08-10 5 min read
GDPR compliance is the elephant in the room. Can you send customer PII to OpenAI? Often, the answer is "No".
Llama 3 on Consumer Hardware
We benchmarked Llama 3 8B on a standard MacBook Pro M3 vs a hosted Azure endpoint. The results were surprising.
For RAG tasks (Retrieval Augmented Generation), local models often outperform larger models because the context is more important than the reasoning power for simple lookup tasks.
The Privacy Advantage
Running AI locally means:
- No data leaves your infrastructure
- GDPR compliance by default
- No per-token costs
- Predictable latency
When to Use What
Use OpenAI/Claude when:
- You need cutting-edge reasoning
- Data privacy isn't a concern
- You're prototyping quickly
Use Local AI when:
- Handling customer PII
- Operating in regulated industries
- Need predictable costs
- Want full control
The Dutch Context
For businesses in the Netherlands, GDPR isn't optional. Local AI isn't just a nice-to-have—it's often a requirement.
The good news? Models like Llama 3 are getting good enough for most business use cases, especially when combined with RAG.