Why These Three Free Tools?
- Python, The programming language to write your AI assistant
- Visual Studio Code, A powerful code editor (IDE) for writing, saving, and running Python programs
- Ollama, An AI model that runs entirely on your own computer, no internet required after download
No paid software, no GPU, no expensive cloud accounts needed.
Step 1: Install Python
Check if Python is already installed
- Open Command Prompt (Windows) or Terminal (Linux/Mac)
- Type the following command and press Enter:
python --version - If you see something like
Python 3.x.x→ Python is already installed, skip to Step 2 - If you get an error like
'python' is not recognized→ proceed to install Python
How to install Python
- Go to python.org
- Download the installer for your operating system (Windows, Linux, or Mac)
- Windows users: During installation, make sure to check the box "Add Python to PATH", this prevents common setup issues later
- Complete the installation
Step 2: Install Visual Studio Code (VS Code)
- Download VS Code from code.visualstudio.com
- Install it for your operating system
- Key features for Python development:
- Syntax highlighting
- Code completion (autocomplete suggests what to type next)
- Integrated terminal (run programs directly inside VS Code)
- Excellent Python support via extensions
Install the Python extension
- When you first open VS Code, it may prompt you to install the Python extension
- If not prompted, simply open or create a
.pyfile → VS Code will automatically suggest installing the Python extension - Click "Install" and you're ready to write Python code
Step 3: What's Next?
With Python and VS Code installed, you now have everything needed to write and run Python programs. If you want to dive deeper into how AI models differ between cloud and local setups, check out How AI Models Work: Cloud vs. Local (Free Ollama Setup).
In the next session, we'll install Ollama, the AI model that runs locally on your computer, and get your first AI assistant up and running. For a clear path to becoming an AI developer, see A Step-by-Step Roadmap to Mastering AI: From Beginner to Confident User. Once you're ready to build, this guide on Understanding APIs and Building Your First AI Assistant in Python will help you create your first assistant from scratch.
Now we will learn how to set up our development environment. So let's start that.
What we need to build an AI application, we will use four free tools. In fact, three only
right now. Later on we will use the fourth one. First is the Python. That is the
programming language. So you will need Python programming language so that you can write your program to make your
assistant. Then you need Visual Studio Code. This is basically code editor. You need a
place where you write your Python program. You can modify it, you can save it, and you can run it to see the
output. That kind of environment is called integrated development environment. There are several
integrated development environment for Python like Jupyter Notebook, Jupyter Lab. Similarly, we will use Visual
Studio Code because this is very good uh integrated development environment for Python.
The third thing you need is Ollama. That is the model, AI model, which will run on our own computer or laptop. We
will download this model from the internet and thereafter it will run on our own computer. So
So I have already told that means you will not have any cost with it. First advantage and the second advantage is
you will not require internet every time to run your program or application. And the fourth is, which is optional, but
which we will use later on, for the version control. Don't worry if you don't understand it right now.
I will tell you. That's all. These are the tools right now, only three. So, there is no paid software, no GPU
required, no expensive cloud accounts. So, for this course, nothing is required, and even then everything will
be absolutely clear to you. So, you start the first step. That means install the Python.
Most of the times, it is possible that on your computer Python is already installed.
So, first check it whether it is installed or not. So, you open the command prompt for
Windows or terminal for Linux and type Python {minus} {minus} version. So, when you type this command, you
should see something similar to this. If you see something similar to this, that means the Python is already installed.
So, you don't need to do anything else with respect to the Python installation. But,
if you get an error that Python is not recognized like this, then install Python before continuing.
How to do that? Very simple. Go on to this website, and depending upon your operating system
like Windows, Linux, Mac, you get the files to download and install. So, very
simple it is to use. I will show it on the laptop also in demonstration. During installation on Windows, make
sure to check the box add Python to path. This saves you from common setup issues
later. That means you don't have to set up the path later. So, therefore you check it. So, it will be very simple.
Second thing is you have to install Visual Studio Code. I have already told you that you can use any editor which is
comfortable to you, but in this course I will be using Visual Studio Code. You can download it from
here, this website, and then you can install. You can write Python program in any
editor, I already told you, but I will be using this. Why? Because it provides syntax highlighting,
code completion, that means you just write a small portion of the code and it tells you what should be the next,
integrated terminal, that means you can use terminal within the Visual Studio Code interface
to run the program or to do anything related with the terminal. And it has very excellent Python
support. So, after you have installed the VS Code, also install the Python extension
when prompted. It will prompt. If it has not prompted right now, whenever you will open or write a Python file, it
will at that time ask to download and install the Python extension. So, it's very simple.
So, now you are ready to write Python code comfortably. So, now we have both. We have Python which we have installed,
and we have an editor where we can write the program and run it. So, we have both the things available for running the
Python program. In the next session, we will learn that how to install AI model Ollama.
I hope it is clear to you.
No, these tools require no GPU or expensive hardware. Python and VS Code work on any modern computer, and Ollama runs efficiently on CPU-based systems. Only a basic internet connection is needed for initial downloads.
Open Command Prompt (Windows) or Terminal (Mac/Linux) and run the command python --version. If it shows something like Python 3.x.x, Python is installed. If you get an error like 'python' is not recognized, you need to install it.
Windows users must check the box labeled "Add Python to PATH" during installation. This prevents common setup issues later and ensures Python commands work correctly from the command prompt.
When you first open VS Code and create or open a .py file, VS Code will automatically suggest installing the Python extension. Simply click "Install" to enable syntax highlighting, code completion, and the integrated terminal for running your programs.
Ollama is an AI model that runs entirely on your own computer, requiring no internet connection after download. Once you set up Python and VS Code, the next step is installing Ollama to get your first locally running AI assistant.
Yes, all three tools—Python, Visual Studio Code, and Ollama—are completely free. There are no paid licenses, no GPU requirements, and no expensive cloud subscriptions needed for this AI development setup.
After installing Python and VS Code, you have everything needed to write and run Python programs. The next step is to install Ollama, which will let you run AI models locally on your computer and build your first AI assistant.
Keep this summary
Save it to LunaNotes and it becomes a real note in your library — editable, searchable, and ready to turn into flashcards or a diagram. Free to start.
Save to LunaNotesOr summarise for another video.
32K+ people have turned 65K+ videos into notes
“Very useful tool. I'm using it for the last couple weeks and I'm loving it so far. Makes learning on YouTube a great experience.”
This summary and transcript were automatically generated using AI with the Free YouTube transcript summary tool by LunaNotes.
Related summaries
Install Python, VS Code, and Ollama for AI Agent Development
This video provides a step-by-step guide to setting up your development environment for building AI agents. Learn how to install Python, download and configure Visual Studio Code, and set up Ollama with large language models.
How to Write Your First AI Program in Python with Ollama
Learn to write a simple AI-powered Python program that communicates with a local AI model (Ollama). This step-by-step tutorial covers importing libraries, loading environment variables, connecting to the AI, sending a question, and displaying the response.
Install Ollama and Run Qwen3 4B Locally – AI Model Setup Guide
Learn how to install the Ollama AI framework on your computer, download the lightweight Qwen3 4B model, and run it locally via terminal. This step-by-step tutorial lets you chat with an open-source LLM right on your own laptop—no cloud or GPU required.
How AI Models Work: Cloud vs. Local (Free Ollama Setup)
Discover how an AI assistant processes questions like 'What is machine learning?' in four simple steps. Learn the difference between cloud-based AI models and free local alternatives like Ollama, perfect for hands-on learning without API costs.
How to Configure AI Model Settings for Your First Python Program
Learn to set up a configuration file (.env) for your AI program, including base URL, API key, and model name. This tutorial shows how to configure Ollama locally so your Python code can communicate with an AI model without hardcoding settings.
Most viewed summaries
A Comprehensive Guide to Using Stable Diffusion Forge UI
Explore the Stable Diffusion Forge UI, customizable settings, models, and more to enhance your image generation experience.
Kolonyalismo at Imperyalismo: Ang Kasaysayan ng Pagsakop sa Pilipinas
Tuklasin ang kasaysayan ng kolonyalismo at imperyalismo sa Pilipinas sa pamamagitan ni Ferdinand Magellan.
Mastering Inpainting with Stable Diffusion: Fix Mistakes and Enhance Your Images
Learn to fix mistakes and enhance images with Stable Diffusion's inpainting features effectively.
Pamamaraan at Patakarang Kolonyal ng mga Espanyol sa Pilipinas
Tuklasin ang mga pamamaraan at patakaran ng mga Espanyol sa Pilipinas, at ang epekto nito sa mga Pilipino.
How to Install and Configure Forge: A New Stable Diffusion Web UI
Learn to install and configure the new Forge web UI for Stable Diffusion, with tips on models and settings.
Found this summary useful?
Take it with you. One click puts it in your own LunaNotes library.
Save to LunaNotes