Copilot questions: can I use Copilot locally?

Yes, more ore less – but for coding.

PERPLEXITY SAYS ME

Yes, you can use Copilot locally, but it depends on which Copilot you mean and what “locally” means for your use case.[docs.github][github][github][microsoftpressstore]

GitHub Copilot: local models and sandboxing

For GitHub Copilot (in VS Code, CLI, etc.):

  • Local models (BYOK / bring your own key)
    Since 2026, GitHub Copilot CLI and Copilot Chat in VS Code support connecting to your own model providers, including locally running LLMs (e.g. via Ollama, vLLM, Foundry Local).[github][github]

    • You configure an OpenAI‑compatible endpoint (like http://localhost:11434 for Ollama) in Copilot settings.
    • You can then use local code models (CodeLlama, DeepSeek‑Coder, Phi, Llama 3.x/4.x variants, etc.) for chat/completions while keeping the same agentic terminal/IDE experience.[github][github]
    • Caveat: you still need a GitHub login to activate Copilot, and some telemetry/safety filtering may still go through GitHub/Microsoft. Full offline, no‑login usage is not officially supported.[github][github]
  • Local sandboxing (for safety, not for running the model)
    GitHub also offers local sandboxing for Copilot CLI: an experimental feature that runs Copilot’s commands in a restricted environment on your machine (limited filesystem, network, and system access).[docs.github]

    • This doesn’t make the AI model itself run locally; it just constrains what Copilot is allowed to do on your system.
    • Enabled via /sandbox enable in a Copilot CLI session or by starting the CLI with --experimental.[docs.github]

If your goal is lower latency, more control, or air‑gapped development, the relevant path is: run a local model server (Ollama/vLLM) and point Copilot to it as a custom model, understanding you still need GitHub authentication.[github][github][github]

Microsoft 365 / Windows Copilot: mostly cloud‑only

For Microsoft 365 Copilot (in Word, Excel, Teams, etc.) and the general Windows Copilot:

  • These are explicitly cloud‑based: the heavy AI processing happens in Microsoft’s Azure services, not on your device.[learn.microsoft][theregister][licendi]
  • There is no official offline or on‑premises version of Microsoft 365 Copilot today; without internet access to Microsoft’s cloud, Copilot in Office will not function.[microsoftpressstore][github][licendi]
  • On “AI PCs” with NPUs, Microsoft has indicated that some elements of Copilot may run locally in the future, but current implementations still rely on the cloud for core functionality.[theregister]

If you need strictly local, no‑cloud AI assistance in an office context, you’d typically look at self‑hosted/open‑source alternatives (e.g. Continue.dev, Tabby, CodeGPT, or custom LSP setups) connected to your own models, rather than Microsoft’s Copilot itself.[github][licendi]

Which setup fits your situation?

  • Developer wanting local code AI in VS Code / terminal:
    Use GitHub Copilot with a local model backend (Ollama/vLLM) via the model picker / environment variables.[github][github]
  • Office/user wanting offline Copilot in Word/Excel/Windows:
    Not currently possible in a fully local way; you need an internet connection to Microsoft’s cloud.[microsoftpressstore][licendi]
  • Air‑gapped or strict no‑cloud environment:
    Use open‑source, self‑hosted coding assistants that talk directly to your local models; GitHub/Microsoft Copilot themselves won’t work fully offline.[github][licendi]

REFERENCES

Using GitHub Copilot CLI with Local Models (LM Studio) – DEV Community
dev.to/playfulprogramming/using-github-copilot-cli-with-local-models-lm-studio-5e3b

GitHub – tamirdresher/copilot-local: Run GitHub Copilot CLI with local models – airplane mode 🛫 · GitHub
github.com/tamirdresher/copilot-local

GitHub – jackdoesjava/vscode-llm-assistant · GitHub
github.com/jackdoesjava/vscode-llm-assistant