Last Updated on February 13, 2026
Looking for a Microsoft Copilot alternative without recurring inference costs? Consider LM Studio for seamless integration with local LLMs right within Microsoft Word. With LM Studio, you can run LLMs on your laptop entirely offline and chat using your local models via a compatible local server. LM Studio supports any GGUF Llama, Mistral, Phi, Gemma, StarCoder, and any compatible model files from Hugging Face repositories.
📖 Part of the Local AI Infrastructure Guide This post is a deep-dive cluster page within our Local AI Infrastructure Guide—your definitive roadmap to building a private, high-performance AI stack.
See it in Action
To see how easily LM Studio can be integrated into Microsoft Word incurring inference costs, watch our demonstration video. Explore more examples in our video library at @GPTLocalhost!
Infrastructure in Action: The Local Advantage
Setting up your local AI infrastructure is the first step; the second is putting it to work. Running models locally via GPTLocalhost turns your infrastructure into a professional drafting tool with three key advantages:
- Data Sovereignty: Your sensitive documents never leave your local drive, ensuring 100% privacy and compliance.
- Hardware Optimization: Leverage the full power of your GPU or Apple Silicon for low-latency, high-performance drafting.
- Air-Gapped Reliability: Work anywhere—including high-security environments or even on a plane ✈️—with no internet required.