·5 min read

Private Document AI: On-Device Processing and Source References

Sensitive files often need a different workflow from a general cloud chatbot. LocalRAG! extracts, indexes, and searches the original document on your phone or tablet. Choose Local AI to keep document content, questions, and answers on-device, or choose Claude, in which case your question and the retrieved excerpts are sent to the API while the original file is not uploaded.

Confidential No Upload Zero Cloud

The confidentiality crisis in AI

Cloud document tools require the user to evaluate where files are uploaded, how long they are retained, and which provider terms apply. That assessment matters for contracts, health information, financial records, HR files, unpublished research, and other sensitive material. A local-first workflow reduces the amount of document data sent away from the device, but it does not by itself certify any particular legal or regulatory use case.

LocalRAG!How LocalRAG! keeps everything on-device

LocalRAG! parses the document, extracts text, builds the index, and retrieves relevant passages on your device. In Local AI mode, answer generation also stays on-device and works offline. In Claude mode, the app sends the question and retrieved excerpts to the API, not the original file. You can also use your own Anthropic API key. Separately, the app sends anonymous usage statistics that contain no file content, question text, or answer text; the Privacy Policy lists the fields.

1🔐

Import confidential documents

Add sensitive PDFs, contracts, medical records, or financial reports. LocalRAG! processes the original files locally and does not upload them.

2🏠

On-device indexing

Document text is extracted locally. The index is built and stored on your device before LocalRAG! searches for relevant passages.

3🛡️

Choose your Q&A mode

In Local AI mode, answers are generated on-device. In Claude mode, the app sends your question and retrieved excerpts to the API, not the original file.

Why professionals trust LocalRAG! with sensitive documents

⚖️

A smaller data boundary

Local AI mode keeps document content, questions, and answers on-device. Your organization remains responsible for evaluating its own legal, security, retention, and device-management requirements.

☁️

Original files stay out of the API request

LocalRAG! does not upload original files. In Claude mode, the API request contains your question and retrieved excerpts rather than the original file.

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Useful for sensitive workflows

Review contracts, records, reports, and internal documents with source references while choosing explicitly between an offline local AI and Claude API mode.

🔑

BYOK option for Claude

You can use your own Anthropic API key when you choose Claude. Review Anthropic’s terms and your own API settings for the workflow you select.

Example confidential document questions

“What are the indemnification clauses in this contract?”

LocalRAG! searches the legal document on-device and identifies indemnification-related sections with page references. With Local AI selected, it can generate the answer on-device.

“Summarize the patient history from these medical records”

With Local AI selected, LocalRAG! can process the medical documents and generate a chronological summary on-device. This is not medical advice; verify important information against the source.

“What are the risk factors mentioned in this financial report?”

LocalRAG! retrieves risk-related sections from the financial document and can summarize them with citations. Verify the cited passages before relying on the result.

“Compare the terms between these two NDAs”

With both NDAs in the same collection, LocalRAG! retrieves clauses such as confidentiality scope, duration, and exclusions, then cites the relevant passages. Verify the source text before making a legal decision.

Verdict

LocalRAG! gives you a clear choice for sensitive documents: keep document content, questions, and answers on-device with the local AI, or use Claude while sending only the question and retrieved excerpts rather than the original file. Source references make the result easier to verify, and BYOK is available when you want a direct API relationship.

FAQ

How does LocalRAG! handle sensitive information?

In Local AI mode, document content, questions, and answers are processed on-device. In Claude mode, LocalRAG! sends your question and retrieved excerpts to the API, not the original file. Separately, the app sends anonymous usage statistics with no file content, question text, or answer text; see the Privacy Policy for the fields.

What happens when I use Claude instead of Local AI?

LocalRAG! retrieves relevant passages from the on-device index and sends your question and those retrieved excerpts to the Claude API for answer generation. The original file is not uploaded. You can use your own Anthropic API key.

Can organizations use LocalRAG! for confidential workflows?

LocalRAG! can reduce how much document data leaves a device, especially in Local AI mode. Each organization must still evaluate device management, access controls, retention, applicable law, and whether Claude or BYOK mode is appropriate for its workflow.

Is LocalRAG! certified for GDPR or HIPAA compliance?

No compliance certification is claimed. Local AI mode keeps document content, questions, and answers on-device, but compliance depends on the data, jurisdiction, organization, device controls, and operating procedures. Obtain a qualified assessment for regulated use.

What about device theft or loss?

LocalRAG! stores its files in the app’s local storage. Use a device passcode, current OS updates, and your organization’s device-management practices to protect sensitive material if a device is lost or shared.

Try LocalRAG! Free

Free tier with 5 questions per day. No account required.

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