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AI Coding Assistants with Continue and Ollama: A Local LLM Guide

💡 Key takeaways

A practical overview of using Ollama and the Continue VS Code extension for AI-assisted coding, from model setup and prompt templates to tests, SQL, and codebase context.

An AI coding assistant can suggest completions or generate code from a prompt. This guide follows a workflow using Ollama to run language models locally and Continue as a VS Code extension, then explores coding tasks that such tools can support.

Local models, privacy, and hardware

A local model may keep inference on your own computer and reduce reliance on a hosted model service. Local execution alone does not guarantee privacy: check the extension, model, telemetry, network, and code-context settings before using sensitive code. Local models also require suitable storage and memory; larger models generally need more resources and may run more slowly on limited hardware.

Comparisons among an Intel Core i9 processor, Apple M3 hardware, and Windows systems need care: these are different kinds of hardware or platform labels, not a like-for-like benchmark. Model size, parameter count, and quantization all affect memory use and performance. Smaller language models can be more practical on limited hardware, while a larger model may offer different capabilities at a greater resource cost.

Install Ollama and choose a model

Ollama provides a way to download and run local models. The lesson introduces model management, listing available models, checking active processes, and starting a model. Choose a model based on the task and the computer available, and benchmark it with representative work rather than assuming that the largest model is always the best fit.

Use Continue in VS Code

Continue brings AI-assisted coding into VS Code. The workflow covers installing the extension, using its interface, creating a demo project, and customizing prompt templates with variables. Clear prompts that state an action and a use case can make requests easier to interpret; refine them iteratively when the first result is not useful.

Examples of coding tasks

Give the assistant useful code context

Embeddings and indexing can help a coding assistant retrieve relevant parts of a codebase. Configure codebase context deliberately and check what files are included. Generated code and database queries still need human review, testing, and appropriate security checks.

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Kanngongkanngoen Editorial Team

We create clear educational content about personal finance, investing, and debt management, with an emphasis on accuracy and transparency.