Last Updated on February 7, 2026
Looking for a Microsoft Copilot alternative without recurring inference costs? Consider using local LLMs directly within Microsoft Word. For example, Mehul’s post highlights that Phi-4 is currently considered the leading choice among small-sized LLMs due to its significant improvements over previous versions. Therefore, it’s worth experimenting with integrating Phi-4 into Microsoft Word to explore its capabilities. This commitment to local execution is at the core of our comprehensive guide to Private AI for Word, your ultimate resource for achieving 100% data ownership.
Watch: Private AI for Word Demo
You can view a demonstration video showcasing how seamlessly Phi-4 integrates into Microsoft Word using LM Studio. The most appealing aspect of this method is that it incurs no ongoing inference costs and functions as long as your computer remains operational. For more examples, please visit our video library at @GPTLocalhost!
The Local Advantage
Running Phi-4 locally via GPTLocalhost ensures:
- Data Ownership: No cloud data leaks.
- Zero Network Latency: Faster performance on GPU and Apple Silicon.
- Offline Access: Work anywhere, including on a plane ✈️, without an internet connection.