The Rabi model considers a two-level system (or spin-1/2) coupled to a quantized harmonic oscillator and describes the simplest interaction between matter and light. The recent experimental progress in solid-state circuit quantum electrodynamics has engendered theoretical efforts to quantitatively describe the mathematical and physical aspects of the light-matter interaction beyond the rotating wave approximation. We extend a stochastic non-perturbative Schrödinger equation approach which enables us to access the strong-coupling limit of the Rabi model and study the effects of dissipation and AC drive in an exact manner. We consider the high-Q cavity limit and include the effect of ohmic noise on the non-Markovian spin dynamics resulting in Kondo-type correlations. We compute the time evolution of spin variables in various conditions. As a scope, we discuss the possibility to reach a steady state with one polariton in realistic experimental conditions.