Where the data sits
In your firm’s own Azure account. Azure is Microsoft’s cloud service, so client data sits on systems Microsoft runs, under your firm’s own contract with Microsoft. It is not an account Local Assistant runs.
Who else is involved
Microsoft, as the host, is an outside supplier, so read its terms as you would any supplier’s. Looking after a system can involve access to it, so Local Assistant is an outside party too.
Whether a contracted tool is a disclosure needing the client’s authority is left open by the texts read so far. Your duties to clients stay with your firm.
What your firm provides
An Azure account in the firm’s own name.
What Local Assistant does
It installs the assistant, then handles updates, patching and support.
Who it suits
A firm that wants a private system set up for it alone and is content for Microsoft to host it. If Microsoft will be your supplier either way, a paid business tool such as Microsoft 365 Copilot may be all you need, once client authority is settled.
Any model’s work needs checking, and a smaller model does less than the best available. Pricing is on enquiry.