Elastic and LM Studio's latest collaboration aims to enhance security operations by integrating Elastic's AI Assistant with locally hosted large language models (LLMs) like Llama 3.1 using LM Studio. With the recent update to LM Studio 0.3, users can set up and manage these models without needing a proxy if operating within the same network, facilitating faster and more efficient deployment. LM Studio provides a platform for running and experimenting with open-source LLMs locally, offering benefits such as improved data privacy, reduced latency, and operational efficiencies. This setup allows security operations teams to leverage AI for context-aware guidance in tasks like alert triage and incident response without relying on third-party model hosting services. Elastic also provides detailed instructions for setting up its AI Assistant using Docker, emphasizing the importance of data privacy and the autonomous control users have over their data when utilizing local models.