On-premises deployment means the AI system runs on servers the organization owns and controls. On-tenant deployment is a variant where the system runs in a dedicated cloud environment allocated specifically to one organization — not shared with other customers. Both give the organization control over where their data goes and who can access it.
In regulated industries like banking and healthcare, this control is often a compliance requirement rather than a preference. Sensitive data cannot leave certain jurisdictions or cross certain security boundaries. On-prem and on-tenant deployment models are how organizations meet those requirements while still using modern AI capabilities.
