The ALICE collaboration has developed a production environment (AliEn) that implements the full set of the Grid tools enabling the full offline computational work-flow of the experiment, simulation, reconstruction and data analysis, in a distributed and heterogeneous computing environment. In addition to the analysis on the Grid, ALICE uses a set of local interactive analysis facilities installed with the Parallel ROOT Facility (PROOF). PROOF enables physicists to analyze medium-sized (order of 200-300 TB) data sets on a short time scale. The default installation of PROOF is on a static dedicated cluster, typically 200-300 cores. This well-proven approach, has its limitations, more specifically for analysis of larger datasets or when the installation of a dedicated cluster is not possible. Using a new framework called PoD (Proof on Demand), PROOF can be used directly on Grid-enabled clusters, by dynamically assigning interactive nodes on user request. The integration of Proof on Demand in the AliEn framework provides private dynamic PROOF clusters as a Grid service. This functionality is transparent to the user who will submit interactive jobs to the AliEn system.