Requires OpenRouter API key for ALL AI features. In education, FERPA/GDPR prevent sending student data to third-party AI. Moodle's AI Connector supports private deployments.

Ollama exposes an OpenAI-compatible API — minimal changes needed: add AI_PROVIDER env var, OLLAMA_BASE_URL, route calls based on provider.

Closes gap against: Moodle AI Connector. Addresses FERPA/GDPR compliance.

Effort: S