Digitale Prozesse wirken mit lokaler KI - CXO Partners GmbH

Digital processes work

CXO Geschäftsprozesse

Digital processes are effective – combining efficiency and data protection with local AI

Digital processes with local AI only reach their full potential when your company protects its information – this is how companies like lawyers, tax advisors and doctors gain speed, precision and legal certainty.

Why act now?

The EU AI Regulation (AI Act) was introduced on entered into force [1] . Prohibited AI practices must be discontinued by 2 February 2025 at the latest ; staggered transition periods apply to high-risk systems [2] .

At the same time, the US CLOUD Act obliges cloud providers with US connections to hand over stored data to US authorities upon order – even if the servers are located in the EU [3] . For professionals bound by confidentiality, this is a compliance nightmare.

Data protection authorities are cracking down: in 2024, they imposed fines of €1.2 billion across Europe [4] . Anyone who continues to upload sensitive audio or text data to opaque cloud services risks expensive legal proceedings and reputational damage.

Three stumbling blocks of analog processes – and how local AI eliminates them

  1. Media breaks & dictation devices
    Meeting notes are handwritten, typed up and transferred to the DMS – each intermediate step takes time and offers room for errors.
    Solution: Local AI transcribes speech live , automatically tags it, and saves it directly in the law firm's or practice's system.
  2. Data privacy risks with cloud uploads
    Many speech-to-text APIs send raw data to non-EU data centers; its whereabouts are opaque.
    Solution: An on-premise AI platform ensures data sovereignty by encrypting audio data, processing it locally, and logging every step in an audit-proof manner.
  3. bottlenecks in knowledge access
    Professionals are manually reviewing records instead of providing advice or diagnosis.
    Solution: A smart AI-supported search makes information findable in seconds and interactively – completely offline.

Attention, don't forget: Secret audio recordings without consent violate Section 201 of the German Criminal Code [5]

Local AI success story: UKB radiology network – local, secure, powerful

In 2025, the radiology network of the University Hospital Bonn (UKB) investigated how large language models (LLMs) could be integrated into the reporting workflow in a data protection-compliant manner. The team tested 21 models (17 open and 4 closed) entirely on-premise and trained an open model with over 3,500 structured X-ray reports .

  • Result 1: The locally hosted, lean model achieved the same extraction quality as GPT-4 – without data leaving the hospital network.
  • Result 2: All patient data remained on the UKB servers; external cloud transfers were not necessary.
  • Benefits: Findings can be automatically structured, eliminating the need for re-dictation and significantly reducing the time until final approval.

Source: University of Bonn – “Using AI to securely convert text to structured information” (January 14, 2025) [6]

Why local artificial intelligence is a perfect fit for sensitive data

The presented example demonstrates key advantages of the clean use of local solutions with artificial intelligence.

Advantage lawyer Tax consulting Medical services
Information remains confidential
Full-text search of dictations & findings Document ready immediately Fast logical document verification Speak the ICD codes instead of typing them.
No internet upload required A law firm VPN is sufficient. On-premise processing and process transfer via interfaces On-premise processing and process transfer via interfaces
Audit trail for AI regulation quickly verifiable documented Audit-proof

Learn more about secure and data protection-compliant processing via the links for you at the end of the blog article.

Quick checklist: Is your company capable of optimization?

Ask If yes" Next step
Do you handle trade secrets? Implement on-premise processing
Do you use > 1 hour of audio notes daily? Introduce real-time transcription
Are there penalties for data loss? Encrypt storage and backups
Do you often search for "Where did client X say that?" Use AI analysis and interactive search

Conclusion: Digital processes work – if you maintain control.

Clients and patients entrust you with personal and sensitive data. With local artificial intelligence, you combine state-of-the-art efficiency with maximum data protection and AI Act compliance – all without the risks associated with Cloud Act. You save time, reduce errors, and document every step in an audit-proof manner.

Questions? We're happy to help! Call us at +43 1 997 28 34 or use our contact form below.
Together we will find the digital process that will have the greatest impact for you.

Further reading recommendations

Want to learn more? Sources for more details

  1. European Commission, Press Release: “AI Regulation enters into force”, 1 August 2024 – commission.europa.eu
  2. Austrian Federal Economic Chamber: “AI Act – The EU AI Regulation” – wko.at
  3. German Bundestag, Research Services (WD 3-105-23): “Impact of the CLOUD Act” – bundestag.de
  4. DLA Piper study 2025: “€1.2 billion in GDPR fines imposed across Europe in 2024” – dlapiper.com
  5. anwalt.de legal advice: “Violation of the confidentiality of spoken words (§ 201 StGB)” – anwalt.de
  6. University of Bonn, press release: “AI enables secure conversion from text to structured information”, January 14, 2025 – uni-bonn.de
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