Does AI work without an internet connection?
Answer
No, for most tools used in SMEs: they run in the cloud and need a connection. There are models you can install on your own premises without internet access, but their cost and upkeep reserve them for special cases. For an SME, the question only really matters if an activity must run without a network or if certain data must never leave your servers.
The real point to watch is availability: an outage at the provider or on your own connection. Business contracts include availability commitments, and an outage is handled like that of any online software, with a way of working without the tool for a few hours. If some data must never leave your premises, a solution hosted on your side can be discussed under AI Engineering.