How to build a Regulatory Compliance AI Agent

TL;DR

A user uploads a contract or compliance-relevant document, and the agent automatically analyzes it for regulatory compliance gaps, risks, and recommendations—then emails a formatted compliance report to a specified reviewer.

What It Does

• Analyzes uploaded documents (contracts, SOWs, policies, etc.) for compliance with key regulations (FAR, DFARS, HIPAA, GDPR, SOC 2, NIST, FedRAMP, etc.).

• Cross-references the document against a curated knowledge base of regulatory and policy documents.

• Generates a detailed compliance report highlighting compliant, partially compliant, and non-compliant sections, with actionable recommendations and citations.

• Emails the report to a reviewer automatically.

Who It’s For

• Compliance officers

• Legal teams

• Proposal managers

• Government contractors

• Anyone responsible for regulatory document review and risk mitigation

Time to Value

• Minutes: Upload a document, enter a reviewer’s email, and receive a compliance report in your inbox—no manual review or regulatory expertise required.

Output

• A well-formatted compliance report (Markdown/text) that:

  • Summarizes the document reviewed

  • Details compliance status by section (✅, ⚠️, ❌)

  • Provides citations and recommendations

  • Is delivered directly to the reviewer’s email

Common Pain Points for Regulatory Compliance Review

• Manual, time-consuming document review

• Risk of missing required clauses or regulatory changes

• Lack of expertise in all relevant regulations

• Difficulty tracking compliance status across multiple documents

• Inefficient communication of findings to stakeholders

What This Agent Delivers

• Automated, consistent compliance analysis

• Clause-level gap identification with citations

• Actionable recommendations for remediation

• Clear, formatted reports for easy review

• Instant email delivery to any reviewer

• Reduced risk of non-compliance and audit findings

Step-by-Step Build (StackAI Nodes)

1) Compliance-Relevant Documents (Files Node)

What it does:

• Lets the user upload contracts, SOWs, or other compliance-relevant files.

• Extracts and processes text (including OCR for scanned documents).

Goal:

• Provide the raw content for compliance analysis.

2) Reviewer Email (Input Node)

What it does:

• Collects the reviewer’s email address.

Goal:

• Specify the recipient for the compliance report.

3) Knowledge Base (Knowledge Base Node)

What it does:

• Searches a curated set of regulatory and policy documents (e.g., FAR, DFARS, HIPAA).

• Provides relevant reference material for the LLM’s analysis.

Goal:

• Ensure the analysis is grounded in up-to-date, authoritative regulations.

4) Regulatory Compliance LLM (LLM Node)

What it does:

• Analyzes the uploaded document(s) for compliance gaps, risks, and recommendations.

• Cross-references the document with the knowledge base.

• Cites specific regulations and suggests redline edits.

Goal:

• Generate a comprehensive, actionable compliance analysis.

Instructions

You are a Regulatory Compliance AI Agent. Your primary role is to cross-check proposals, contracts, and related documents against relevant government and industry regulations, including but not limited to:

- FAR (Federal Acquisition Regulation)

- DFARS (Defense Federal Acquisition Regulation Supplement)

- HIPAA (Health Insurance Portability and Accountability Act)

- GDPR (General Data Protection Regulation)

- SOC 2, NIST 800-53, FedRAMP



You are not a lawyer, but you are trained to flag compliance gaps, inconsistencies, or potential risks in documentation. Always cite the regulation or clause number where possible.



Core Tasks:

1. Clause Identification: Highlight where required clauses (e.g., FAR 52.204-21, DFARS 252.204-7012) are missing or incomplete.

2. Cross-Reference Validation: Check that deliverables, timelines, and data handling commitments align with HIPAA/NIST/FAR standards.

3. Risk Flagging: Flag ambiguous language (e.g., undefined data security responsibilities). Identify areas where liability, penalties, or compliance ownership is unclear.

4. Gap Analysis: Compare current contract terms against regulatory checklists. Provide a “Compliant / Non-Compliant / Needs Review” score for each section.

5. Recommendations: Suggest additional clauses, safeguards, or wording adjustments to strengthen compliance posture.



Outputs:

- A Compliance Report with:

  - ✅ Fully compliant sections (with clause references)

  - ⚠️ Partial compliance or ambiguous wording (with recommended fixes)

  - ❌ Non-compliant or missing sections (with exact regulation citation)

- Optionally: A redlined contract draft with suggested insertions or edits.



Always be clear, cite specific regulations, and provide actionable recommendations

Prompt

Analyze the following document(s) for regulatory compliance:



{doc-0.documents} 





{knowledgebase-0}



Return a compliance report with:

- ✅ Fully compliant sections (with clause references)

- ⚠️ Partial compliance or ambiguous wording (with recommended fixes)

- ❌ Non-compliant or missing sections (with exact regulation citation)



If possible, suggest redline edits or additional clauses to improve compliance

5) Compliance Report Template (Template Node)

What it does:

• Formats the LLM’s output into a clear, professional report (Markdown).

• Includes document summary, compliance findings, and disclaimers.

Goal:

• Make the report easy to read and share.

6) Output (Output Node)

What it does:

• Presents the formatted compliance report to the user in the StackAI interface.

Goal:

• Allow instant review and download of the report.

7) Send Email (Gmail Action Node)

What it does:

• Sends the compliance report to the reviewer’s email address.

• Uses a secure Gmail connection.

Goal:

• Ensure the right stakeholder receives the report automatically, closing the loop.