Set up AI with LM Studio, Foundry Local or a cloud service

Goal

Get the assistant working in PowerMail with a model you choose, and decide which AI features are on.

Before you start

For AI on your PC: LM Studio, Microsoft Foundry Local, Ollama or llama.cpp installed. The setup links to the Foundry Local installer if you don't have it yet.
For a cloud service: an API key from Anthropic, OpenAI or Google.
PowerMail open. Use AI in PowerMail is on unless you turned it off.

Steps

Open the AI settings Open Settings > AI assistant. Until AI is set up, the Main AI card says No AI set up yet and the assistant panel stays hidden. Click Set up AI. The same setup opens from Set up in the assistant panel.

Before setup, the Main AI card offers Set up AI.
Choose where AI runs Click Get started, then pick On this PC (recommended), which runs on your PC and needs your AI service running, or Cloud service, which uses an online service with an API key. Click Continue.

Choose where AI runs.
Choose your AI provider On this PC lists LM Studio, Ollama, llama.cpp, Microsoft Foundry Local and Another service. Cloud service lists Anthropic (Claude), OpenAI (ChatGPT), Google (Gemini) and Another service. Another service takes any OpenAI-compatible server address. Pick one and click Continue.

On this PC lists the local AI services PowerMail connects to.
LM Studio: start the server and pick a model In LM Studio, load a model and start its local server. Back in PowerMail, choose the model in the Model list; Refresh models reloads the list. Server address (optional) is only needed if you changed LM Studio's address. Ollama and llama.cpp work the same way: start the runtime with a model, then choose it. Under the model PowerMail notes Connects to this PC. Check that it runs a local model.
Foundry Local: install and download a model Click Install Microsoft Foundry Local if it isn't installed yet, then Check installation. Choose a model in the list (selecting one shows its download size and how well it fits this PC) and click Download selected model. You can also manage these downloads later under Models & services > Models on this PC.
Cloud service: add your key Paste your key into API key and click Save API key. Get an API key opens the provider's key page. Then choose a model. The form names where requests go: mail content you use with AI (senders, subjects and message text) is sent to that service for processing.
Test the connection Click Continue. PowerMail checks your AI with sample text, never your mail. If the model passes, Your AI is ready shows the model and provider. If it doesn't, choose another model or provider and test again.
Start chatting Click Start chatting (it reads Turn on and start chatting if AI was off). The assistant opens; show or hide it later with the Assistant button in the title bar or Ctrl+Shift+A.
Choose what AI helps with Back in Settings > AI assistant, open AI features to switch Chat assistant, Daily digest & priority, Reply drafts, Scam double-check, Writing help and Day briefing on or off, and to pick a model per feature. Models & services lists your connected AI services (Add connection adds another). Tools & permissions holds browsing, extra tool servers and the folders the assistant may read.

Tips

Check what this PC can do (Check my PC, under AI features or Advanced) shows which AI features will work well on your hardware.
Turning off Use AI in PowerMail hides the assistant and every AI feature. Your choices are kept, and rule-based protections stay on.
Only turn on the AI diagnostic log (under Advanced) to diagnose an assistant problem: it records every AI prompt and reply to a file, and prompts contain your mail. Delete log removes the file.

Result

The assistant panel is available, the Main AI card names your model and provider, and the AI features you chose use it.

If something goes wrong

This model did not pass the assistant check. The model couldn't handle what the assistant needs. Choose another model or provider in the setup, then test again.
No models appear, or it couldn't reach the server in time. Check that LM Studio's server (or Ollama, llama.cpp or Foundry Local) is running with a model loaded, then click Refresh models.
The Assistant button isn't in the title bar. Check that Use AI in PowerMail is on in Settings > AI assistant and that Chat assistant is on under AI features.
AI is paused. Pause all AI was switched on from the Assistant button's right-click menu, the tray or a notification. Switch it off there, or click Resume AI in Settings > Home or Settings > Apps & agents (MCP).
A harmless mail was labelled a scam. AI labels are advice, and the AI can be wrong. Nothing is moved without you. If it happens often, turn off Scam double-check under AI features; the rule-based scam screen stays on either way.

Common questions

Why can't I see the assistant panel?

It stays hidden until AI is set up. Open Settings > AI assistant and click Set up AI.

Which AI providers can I use?

On your PC: LM Studio, Ollama, llama.cpp and Microsoft Foundry Local. In the cloud: Anthropic (Claude), OpenAI (ChatGPT) and Google (Gemini). Another service connects any OpenAI-compatible server address.

Where do AI requests go?

To the service you chose. On this PC means your runtime on this computer handles them. For a cloud service, the form says that mail content you use with AI (senders, subjects and message text) is sent to that service, and Models & services marks such a connection Leaves this PC.

Can different features use different models?

Yes. Under AI features, the menu beside Chat assistant, Daily digest & priority, Writing help and Day briefing picks the model for that feature.

How do I change the AI later?

Open Settings > AI assistant and click Change AI on the Main AI card. It runs the same setup.