Assessing a company for data privacy risks (data privacy due diligence) is often a race against time. Unsorted data rooms, hundreds of English-language documents, and the pressure to quickly find critical deal breakers such as GDPR violations or security gaps are part of everyday life for lawyers. In the following article, we use the example of a fictional US acquisition (“FitBox”) to show how you can massively accelerate this process with PyleHound without sacrificing legal diligence.

Key Takeaways

• Efficiency with unsorted data: Import entire folder structures via drag & drop; PyleHound also processes unsorted data rooms immediately.
• Multilingual intelligence: Ask questions in German about English-language documents (or vice versa) – the AI always responds in your chosen working language.
• Human-in-the-loop: Maintain full control with transparent citation scanning, which backs up every AI statement with verifiable sources in the document.

How do I start a data protection due diligence with unsorted documents?

Starting an audit is straightforward because PyleHound offers a flexible knowledge database that can be filled via drag & drop.

Instead of laboriously reviewing and categorizing documents individually, create a new project in PyleHound (e.g., “FitBox DD”). Use the “Knowledge Base” function to import your entire database – be it DPAs, security policies, or privacy shields. The system also accepts completely unsorted folder structures. The case shown is a fitness app that processes highly sensitive health data. The key feature: even if the documents are entirely in English (as in the example), they are immediately ready for analysis.

Can PyleHound analyze English documents with German prompts?

Yes, PyleHound is fully multilingual and enables seamless analysis of foreign-language documents by entering prompts in your preferred working language.

This is a decisive advantage in cross-border transactions. You can formulate your query (the prompt) in German—for example: “What are the risks regarding data protection and data security at FitBox?”—even though all the underlying contracts are in English. The AI engine understands the context semantically and returns the answer in the language of your query. PyleHound supports over 20 languages, effectively eliminating language barriers in due diligence.

How do I maintain full legal control over the AI results?

Control over the results is ensured by the transparent “quote scan” because PyleHound links each generated statement directly to the source in the original document.

Trust is good, but control is essential in the legal system. PyleHound does not work as a “black box.” After you have asked your question, the system performs a citation scan. This involves:

1. Identifying relevant text passages: The semantic search lists all passages that were used to answer your question.
2. Context is displayed: You see not only the quote, but also the surrounding text to rule out misinterpretations.
3. Quality is assessed: The system gives an initial assessment of relevance (e.g., “Strong match”).

Here you have the opportunity to intervene as a “human in the loop”: You can verify, deselect, or confirm quotes before the final summary is generated. This ensures that no hallucinations find their way into your report.

What results does risk analysis deliver for sensitive data?

The risk analysis provides a structured, technical summary because the LLM (Large Language Model) is specifically trained on legal contexts and compliance standards.

In the “FitBox” case, PyleHound immediately recognizes the critical points:

• Processing of sensitive data: The app processes health data, which triggers special requirements under the GDPR and BDSG.
• Access control: Specific risks are identified in access controls.
• Compliance gaps: Comparisons with the General Data Protection Regulation are automatically highlighted.

The result is not generic text, but a sound basis for your due diligence report, which clearly identifies risks such as data leaks or inadequate security measures.

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Conclusion: With PyleHound, you can transform a confusing data room into structured knowledge. You save hours of manual review and at the same time increase the reliability of your audit with verifiable source references.

Would you like to complete your next due diligence in record time? Try PyleHound today.

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Transcript

We are conducting a data protection due diligence review. I'm starting a new project here in PyleHound, which I'm calling “FitBox 6.” I enter “DD” for due diligence as the project goal. I create the new project and now have the option to add a knowledge database to it.

I can import documents using the button at the top. Upon request, I received an unsorted folder of documents. These are a wide variety of documents: DPAs, data security, and data privacy documents. The interesting thing is that I requested and received all of these documents in English.

Background: FitBox is an app designed to help users with fitness. Of course, this app collects a lot of sensitive data – health data, eating habits, etc. FitBox is relatively successful, and a US company now wants to buy it. We are supposed to take a look at how FitBox is positioned in terms of data protection and data security.

What interests me now, based on these documents, is: What are my initial findings, my initial assessments, and the initial risks? And also: What kind of documents are these anyway? Has the company provided me with the right documents?

Since there is no conversation yet, I'll start a new one now. You can see below that the FitBox documents and folder have been added. Now I can get started right away and ask the documents a question.

I'm interested in: “What are the risks regarding data protection and data security at FitBox?” The interesting thing now is that I'm prompting in German. However, the documents are in English. You always get the result in the language you prompt in. PyleHound is multilingual, with over 20 languages available. The documents you upload and work with can also be in different languages (e.g., German contracts mixed with English ones). You will receive the answer in the language of the prompt.

Let's get started. Now you can see here: The quote scan is running. The exciting thing is that all text passages are now listed here – sorted by documents that PyleHound has found using semantic search. It is particularly important here that you have full control. If I want, I can include all selected quotes in my ongoing conversation. However, I don't have to do that. If I say, “I don't feel like going through every quote,” then I simply trust PyleHound. However, I also have full control and can transparently accompany the LLM in its work.

For example, in the document “Access Control Policy,” I see the relevant text passages on the topic of data protection and data security, including context (text before and after) for classification. In addition, there is an initial assessment by the LLM as to whether this text passage actually has a strong match. In this case, yes, we see terms such as GDPR or Data Protection Regulation. If it were further away thematically, the marking might be yellow or red.

I now say: I trust PyleHound and continue with all the selected quotes. PyleHound has also already completed our initial assessment of the risks. As PyleHound correctly notes, there are specific risks to consider due to sensitive personal data. These are summarized for us below.