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Are local LLMs ready for production applications?

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#applications

#llms

#production

Dynamics 365 Business Central

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Feb 22, 2025

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AI Summary

  • Large Language Models (LLMs) are advanced types of artificial intelligence that use deep learning techniques to understand, generate, and manipulate human-like text.
  • LLMs consist of billions or even trillions of parameters, enabling them to capture complex patterns in language data.
  • Techniques like quantization or pruning can reduce model size and improve inference speed for local LLMs, but may impact accuracy.
  • Running LLMs locally depends on specific needs, available resources, and technical expertise.
  • Local LLMs can be cost-effective and suitable for many scenarios, providing comparable results to cloud-based models.
  • Microsoft's Phi-4 model is memory-optimized and suitable for local AI solutions, while Deepseek R1 uses reinforcement learning for reasoning.
  • Deepseek R1 has a distilled version that can be used to fine-tune smaller LLMs for good reasoning capabilities.
  • Local LLMs can be used in production scenarios successfully, offering great results at zero cost.

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