On-device AI vs. cloud AI: which one should you choose?

February 3, 2025
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On-device AI vs. cloud AI: which one should you choose?

AI over here, AI over there, and everywhere. That was the theme for 2024; with the start of 2025, artificial intelligence still continues to grow.

In the era of the Fourth Industrial Revolution, AI is a technological marvel that is being implemented in every industry without any question. While OpenAI’s ChatGPT did open up the space for almost every user, 2025 brought in competitors such as DeepSeek and QwenAI which shook the global market. 

Now, technology companies have started implementing AI features and chips within their newly released devices to not just meet the market's demand but to provide a solution humans have never witnessed before. 

HP is one of those multinational technology companies that has released its latest line of AI laptops with real-world solutions, claiming it is the “Future of Work.” 

Well, AI is, after all, the future, and let’s be honest—some of us have already started using it within our own line of work ever since we gained access to an AI chatbot like ChatGPT. Moreover, insights from a report revealed that AI adoption among knowledge workers in 2024 surged to 66%, which is a 38% drastic change in just one year. 

However, despite the rapid surge in AI adoption, the report also revealed that 28% of knowledge workers globally enjoy a healthy relationship with work, emphasizing the need for AI-enhanced tools to bridge this gap. And, just like any great technological wonder, AI will be perfected over time. 

Here’s a question though: why do we need devices like HP’s newly launched laptops with built-in AI features? Why not just use cloud-based AI tools like ChatGPT instead?

To shed light on the difference between cloud-based AI and on-device AI, Ertug Ayik, the Managing Director of HP Middle East and Africa, sat down exclusively with The Byteline. His insights offer a clearer perspective on how these two AI approaches shape the future of technology.

According to Ayik, on-device AI stands out for three key reasons—unlocking a new era of smarter, faster, and more secure computing. 

Stating the first advantage of on-device AI, Ayik claims, “It's much faster. Today, almost all AI solutions run on the cloud.” 

“When you use a feature like live translation, every word needs to be sent to the cloud, processed, and sent back, making real-time interaction difficult. Running AI on the device allows translations to happen almost instantly, so as someone speaks, you can see the translation in real time.”

“The second advantage is cost. When you run a query on ChatGPT, the energy required to generate a response is equivalent to powering a light bulb for an entire week. Given the millions of queries processed daily, the cost of computation and energy is significant.” 

“With on-device AI, the processing happens locally using a dedicated chip, eliminating the need for cloud-based computing, expensive subscriptions, or additional computation power. This makes it far more cost-effective.”

“The third key advantage is security. AI can do incredible things, but not all data can be shared with cloud-based services. For example, in a hospital setting, analyzing patient data with AI raises concerns about privacy and compliance. With AI running on the device, organizations can keep sensitive information secure without sending it to third-party servers. This ensures better privacy and control.”

“By integrating AI directly into PCs, printers, and video collaboration technology, we are making AI faster, more cost-efficient, and more secure."

So, what type of AI features should users use—on-device AI or cloud-based AI? Ayik claims that it depends on the situation and that a balance should be maintained between them.

“Both cloud-based AI and on-device AI have their own advantages. There are many benefits to running AI in the cloud, but there are also specific applications where individuals or companies will prefer to keep it on the device. It’s all about balance—some tasks are better suited for cloud AI, while others work best when processed locally. Fortunately, we now have the technology to support both approaches."

“For example, when I started as a product manager at HP 25 years ago, my role involved reading a lot of internal research about our products—how customers perceived them, pricing strategies, and comparisons with competitors. I had to go through hundreds of pages to develop a strategy, which took a significant amount of time.”

“Now, with HP’s new AI-powered PCs, we have an AI companion that simplifies this process. Instead of reading through 800 pages, I can upload up to 15 documents into the AI platform and simply ask questions. For example, I can say, 'Based on the research, what is the best price point for this product?' and get an instant answer. This speeds up decision-making significantly.”

“However, some of this research is confidential, so I wouldn’t want to upload it to a cloud-based AI service. This is a case where on-device AI is more suitable. Another example is live translation. If AI is running on the device, it can provide real-time translation without delays, making communication seamless.”

“Ultimately, AI isn’t just for executives or knowledge workers. It’s a tool that everyone can use to improve productivity, enhance creativity, and create more capacity for their work.”

As AI continues to evolve, the choice between on-device AI and cloud-based AI isn’t about replacing one with the other—it’s about leveraging both to unlock their full potential. While cloud AI provides scalability and vast computational power, on-device AI offers speed, cost efficiency, and security, making it indispensable for real-time and sensitive applications. 

The future of AI isn’t confined to a single approach; rather, it lies in the seamless integration of both, empowering individuals and businesses to work smarter, faster, and more securely. As we step further into 2025, the real question is how to use AI effectively to reshape the way we live and work.

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