Last Updated on January 8, 2026
The Enterprise Standard
The transition to professional document automation requires more than just raw text generation; it demands high-fidelity reasoning and a “safety-first” architecture. Private AI for Word has reached a new possibility for enterprise with IBM Granite 3.2. According to this post, Granite 3.2 is a model specifically engineered with advanced reasoning capabilities, making it exceptionally proficient at parsing dense legal language and technical contracts.
By running GPTLocalhost as a Word Add-in, you can deploy IBM’s enterprise-grade logic directly in Microsoft Word on your local hardware. Whether you are performing a deep-dive contract analysis or summarizing complex clauses, this local-first approach ensures 100% data ownership—a core requirement for legal and corporate professionals and a central pillar of our Ultimate Guide to Local LLMs for Microsoft Word.
Watch: IBM Granite 3.2 Contract Analysis Demo
This demonstration showcases how IBM Granite 3.2 handles the rigorous demands of legal drafting. Watch as it performs an automated Contract Analysis and generates a concise, high-fidelity summary of key risks and clauses directly inside Microsoft Word—processed entirely offline. The use case in this demo is from this recipe provided by IBM.
For more technical demonstrations of private AI models in Microsoft Word, please visit our channel at @GPTLocalhost.
Technical Profile: Why IBM Granite 3.2 for Word? (Download Size: 4.69 GB)
IBM Granite 3.2 is built for professionals who prioritize accuracy and safety over general-purpose chatbots. The models deliver significant improvements in reasoning, security, and document comprehension, while remaining aligned with IBM’s commitment to open-source AI optimized for professional use.
- Unprecedented flexibility in reasoning: The Granite 3.2 Instruct 2B and Instruct 8B models introduce a switchable reasoning capability (“chain of thought”) that can be enabled or disabled to optimize efficiency. With this innovation, the 8B model delivers double-digit performance gains over its predecessor on benchmarks like ArenaHard and Alpaca Eval, and is competitive with Claude 3.5 Sonnet and GPT-4o in mathematical reasoning.
- Enhanced security: The Granite Guardian 3.2 is purpose-built to address enterprise-grade security and compliance requirements, achieving a 30% reduction in model size without sacrificing reliability. It also introduces a novel “verbalized trust” approach, which enhances risk assessment by explicitly accounting for areas of uncertainty.
Deployment Reminders: Running Granite 3.2 Locally
Our evaluation was conducted on a Mac M1 Max with 64 GB of RAM, which is quite sufficient for granite-3.2-8b-instruct (Q4_K_S). It is noted that, after our evaluation, several newer models have since been released, as listed below. Interested users are encouraged to test them as well.
- Granite 3.3(2025-03): The new models add fill-in-the-middle (FIM) capabilities and continue to refine the thinking capabilities introduced in Granite 3.2.
- Granite 4.0(2025-10): A hyper-efficient, high performance hybrid models for enterprise. The model features a new hybrid Mamba/transformer architecture that greatly reduces memory requirements without sacrificing performance. They can be run on significantly cheaper GPUs and at significantly reduced costs compared to conventional LLMs.
The Local Advantage
Running Granite 3.2 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.