Privacy Code Scanner
Regulation (EU) 2024/1689

Prove what data your AI systems process. Before the EU AI Act asks you to.

Build an accurate AI inventory directly from source code, trace personal and sensitive data flowing into LLM prompts and AI APIs, and produce the Article 11 technical documentation EU AI Act compliance expects. Code-based evidence, before anything reaches production.

HoundDog.ai datamap showing AI integrations like OpenAI alongside other data sinks, with sensitive data elements PHI, PII, and SECRET traced into each one from source repositories
The Stakes

Where the EU AI Act stands today

The regulation is in force, with prohibitions and General-Purpose AI rules already enforceable. The Digital Omnibus agreement of 7 May 2026 deferred the headline high-risk deadlines, but several obligations apply immediately and the work to meet them takes time.

€35M / 7%
Maximum fine under Article 5
Of global annual turnover, whichever is higher, for prohibited AI practices. Higher than GDPR's 4 percent ceiling.
Aug 2026 · Dec 2027
Two compliance horizons
Article 50 transparency obligations apply from 2 August 2026. Annex III high-risk obligations deferred to 2 December 2027 under the Digital Omnibus.
50%+
Of organizations lack an AI inventory
Industry readiness analysis through 2026. Without a systematic inventory, risk classification and Article 11 documentation are not possible.
Where Teams Get Stuck

Four gaps between code and EU AI Act readiness

Compliance leaders know which Articles apply. The harder question is how to gather evidence that the application actually behaves the way the documentation says it does. Most organizations hit the same four walls.

No accurate AI inventory

Engineering ships OpenAI, Anthropic, Gemini, and agent-framework integrations through pull requests. None of these reach procurement. Spreadsheets and questionnaires drift the moment a new SDK lands. Risk classification under Article 6 is impossible without a current inventory of what your application actually calls.

AI Act Art. 6 · Art. 11

Personal data flowing into LLMs unseen

PII exposures to AI integrations are rarely intentional. They happen as codebases grow. A developer prints a full user object, a tainted variable carries PHI through a chain of transformations, and by the time anyone notices, the data has already been logged or sent to a third party. Article 10 data governance and GDPR Article 9 special categories apply, but the evidence lives in source code, not in a runtime log.

AI Act Art. 10 · GDPR Art. 9

Article 11 documentation is a moving target

Agile teams ship every week. Technical documentation written at design time is stale before the next sprint. Retrofitting design history across dozens of services to satisfy Annex IV expectations is the work most compliance teams underestimate, and the work auditors examine first.

AI Act Art. 11 · Annex IV

The GDPR and AI Act overlap is dual exposure

Personal data entering an AI system is governed by both regimes. A single oversharing flow can trigger GDPR Article 32 security violations, Article 35 DPIA gaps, and AI Act Article 10 data-governance findings at the same time. Two regulators, two penalty schedules, one root cause.

GDPR Art. 32 / 35 · AI Act Art. 10
The Regulation

How the EU AI Act classifies AI systems

The AI Act is risk-based. Obligations escalate with the potential harm a system could cause. The four tiers determine what your team has to produce and which deadline applies to you.

Minimal Risk

Largely unregulated

Spam filters, recommendation engines, inventory optimization, and most general AI use. Providers are encouraged to adopt voluntary codes of conduct. No specific obligations.

Limited Risk

Transparency obligations (Article 50)

Chatbots, generative AI, emotion-recognition systems, and biometric categorization. Users must be told they are interacting with AI. AI-generated content must be machine-readable as synthetic. Applies from 2 August 2026.

High Risk

Conformity assessment, documentation, oversight

Annex III systems in recruitment, credit scoring, education, employment, law enforcement, migration, and justice. Plus Annex I product-embedded AI in regulated products. Risk management, data governance, technical documentation, logging, human oversight, and registration in the EU database.

Unacceptable Risk

Banned under Article 5

Social scoring, subliminal manipulation, untargeted facial scraping, emotion recognition in workplaces and schools, real-time biometric identification in public spaces. New for December 2026: AI-generated CSAM and non-consensual intimate imagery.

Digital Omnibus update (May 2026): The provisional agreement of 7 May 2026 deferred Annex III high-risk obligations from 2 August 2026 to 2 December 2027, and Annex I product-embedded high-risk systems from 2 August 2027 to 2 August 2028. Article 50(2) watermarking moves to 2 December 2026. Article 5 prohibitions and General-Purpose AI obligations remain in force unchanged. Plan for the deferred dates, but build the inventory and technical documentation now. The work to meet them did not change.
How HoundDog.ai Helps

Code-based evidence for every relevant Article

HoundDog.ai operates inside the development pipeline, tracing how sensitive data actually flows to AI systems as code is written and changed. Scans run locally. Your code never leaves your machine.

1

Build an accurate AI inventory from source code

Static analysis recognizes more than 1,000 integrations out of the box, including direct LLM SDKs (OpenAI, Anthropic, Gemini, Mistral) and AI agent frameworks (LangChain, LlamaIndex, CrewAI, PydanticAI, Semantic Kernel). Every AI integration is flagged the day engineering adds it, with the file, function, and call site identified.

This becomes the foundation for risk classification under Article 6. You cannot decide whether a system is Annex III high-risk without knowing what it actually is.

HoundDog.ai datamap listing AI sinks like OpenAI alongside other third-party services with data elements and source repositories
2

Trace personal data into every AI integration

Taint-flow static analysis follows sensitive fields across files, functions, and procedures, then flags them when they reach a data sink. Each AI-bound flow is rated safe or risky against customizable allowlists per provider.

  • More than 100 sensitive data types supported: PII under GDPR, PHI under HIPAA, CHD under PCI, plus auth tokens and secrets that breach Article 10 data-governance expectations.
  • Special-category data under GDPR Article 9 (health, biometric, racial, political) is detected and flagged distinctly, since these trigger the highest tier of obligations when sent to AI systems.
HoundDog.ai detecting Medical History PHI flowing from patient_context through a LangChain SystemMessage into an OpenAI llm.invoke call, marked RISKY
3

Keep technical documentation aligned with code

New AI integrations and the categories of personal data they process become suggested edits in your Org RoPA and AI inventory, each traceable to the code that generated it. The privacy team reviews and approves every change.

Auto-generate Data Protection Impact Assessments pre-populated with detected AI data flows and risks, aligned with the EU AI Act, GDPR, HIPAA, and other frameworks. Because the documentation is grounded in actual processing behavior, it satisfies Article 11's expectation that records reflect what the system does.

Org RoPA suggested edit to the Names of Subprocessors and DPA Status field, adding Amplitude with DPA established and LangChain with DPA status unknown, queued for privacy team review with approve, reject, and edit controls
4

Block risky AI flows in CI before they reach EU users

Bake your AI policy into the pipeline. Define which data categories are allowed per AI provider, and block unsafe flows when they are introduced in pull requests. Default allowlists ship out of the box: an internal LLM endpoint's allowlist differs from a public AI API.

Unapproved AI data sharing is addressed while context is fresh and remediation costs are low. Preventive enforcement turns governance from advisory documents into operational controls, which is the spirit of GDPR Article 25 privacy by design and what AI Act conformity reviews look for.

Data sink rule with trust mode and customizable safe data elements allowlist applied to an external integration
Article Mapping

What HoundDog.ai produces, per Article

A side-by-side view of where the regulation makes specific requirements and the code-based evidence HoundDog.ai surfaces for each. Designed to be shared with auditors and DPOs.

Requirement What it asks for Code-based evidence from HoundDog.ai
AI inventory
Art. 6, foundational
Identify which AI systems the application uses so risk tier can be assigned. Static analysis enumerates every AI integration in source code, including SDK-based and indirect agent-framework usage, with file and call-site provenance.
Data governance
AI Act Art. 10
Document categories of personal and sensitive data processed by AI systems. Taint-flow analysis traces 100+ data types into each AI sink, categorized as PII, PHI, CHD, secrets, or special-category data under GDPR Art. 9.
Risk management
AI Act Art. 9
Identify, evaluate, and mitigate risks throughout the system lifecycle. Risky data flows are surfaced at PR time with severity rating, providing a continuous risk register tied to code changes rather than periodic reviews.
Technical documentation
AI Act Art. 11, Annex IV
Maintain records of design, data, validation, and monitoring sufficient for authority review. Every scan produces reproducible evidence of which AI systems are called, what data they receive, and from where, exportable as audit-ready artifacts.
Record-keeping
AI Act Art. 12
Automatic logging of events relevant to risk identification and post-market monitoring. Code-level provenance for every detected flow: repository, file, line, function. Persistent and queryable across scans, with diffs between runs.
Transparency
AI Act Art. 50, from Aug 2026
Disclose AI interactions to users. Mark AI-generated content as synthetic. Classification of detected AI usage (generative, chatbot, decision-support) helps determine which Article 50 disclosures apply per feature.
Privacy by design
GDPR Art. 25
Build minimization, access controls, and protection into the architecture from the start. CI integration blocks unapproved AI data sharing in pull requests, shifting privacy enforcement to design and development phases.
DPIA
GDPR Art. 35
Assess and document high-risk processing before it begins. Auto-generate Data Protection Impact Assessments pre-populated with detected data flows, AI integrations, and identified risks.
Records of Processing
GDPR Art. 30
Maintain a register of processing activities and subprocessors. New AI integrations and subprocessors appear as suggested RoPA edits for privacy team review and approval, traceable to the code change.
See It in Action

EU AI Act Readiness, Grounded in Code

Watch a live demo of HoundDog.ai discovering AI integrations from source code, tracing PHI and PII into LLM prompts, and turning each finding into the kind of evidence Article 11 technical documentation expects, before anything ships.

Demo · Privacy by Design for AI Apps

Discover Shadow AI and prove what data your application sends to LLMs

A walkthrough of the scanner running against a real codebase, surfacing AI integrations, tracing sensitive data into prompts, and producing the artifacts privacy, security, and compliance teams need to demonstrate readiness.

Watch Now
For Privacy Teams

Code-based evidence for GDPR data maps, RoPA & privacy reviews.

At development speed. Prevent risks instead of documenting them after the fact, with privacy teams in control: the engine proposes, the DPO approves.

Discover

Every integration, straight from the code

All third-party and AI integrations detected directly in source code, including Shadow AI, whether the data flows through an SDK or API, with 1,000+ integrations covered out of the box.

OpenAI
Anthropic
LangChain
Salesforce
Datadog
HubSpot

LLM Prompts
Third-Party SDKs
Logs
Files
Local Storage
Many Others
Trace

Follow sensitive data into every sink

Trace 100+ sensitive data types (PII, PHI, CHD, auth tokens) across code paths and into every data sink, including logs, storage, APIs, third-party, and AI integrations.


Verify & Suggest

RoPA that keeps itself current

Keep your RoPA updated as new categories of personal data and subprocessors are introduced, detected directly from source code.

Validate design-phase privacy reviews with code-based evidence before code is pushed to production.

Suggest
Org RoPA updates
Verify
Alignment with PIA
Block
Risky data flows
Catch
Log leaks early
AI
Dual Regime Reality

GDPR keeps applying in the AI era

The AI Act does not replace GDPR. Personal data flowing into AI systems is still governed by GDPR, with full penalties. The two regimes overlap at every layer of an AI feature, so the safest assumption is that both apply.

TopicWhat this means for LLM usePrimary legal basisMaximum penalties
Lawful basisA valid lawful basis must be selected before any personal data is processed by the model or provider.GDPR Art. 6Up to 20M EUR or 4% of global revenue
Special categoriesSpecial categories cannot be processed unless an Article 9 exception applies with strong safeguards.GDPR Art. 9Higher tier penalties
Privacy by designControls for minimization, access, and protection must be built into the architecture from the start.GDPR Art. 25Higher tier penalties
Security of processingEncryption, logging, and strong access controls must be in place across AI data paths.GDPR Art. 32Penalties scale with severity
Transparency and user rightsUsers must be informed and allowed access, correction, deletion, and objection over their data.GDPR Art. 12-15, 21Penalties vary
International transfersValid transfer mechanisms and documented assessments are required when AI providers operate outside the EU.GDPR Art. 44-49Penalties vary
Prohibited AI practicesSocial scoring, manipulation, untargeted biometric scraping, and emotion recognition at work or school are banned.AI Act Art. 5Up to 35M EUR or 7% of global turnover
Why It Has Been Hard

Why existing approaches fall short for the EU AI Act

The methods most teams reach for first were not designed for a regulation that requires reproducible technical documentation of what the application actually does at the code level.

Vendor questionnaires

Stale by the time code ships. Even when engineers answer accurately, the answers reflect a snapshot. A new AI SDK landing the following week is invisible to the questionnaire until the next review cycle.

Snapshot, not signal.

Runtime AI gateways

Useful for monitoring production traffic, but only see what has already shipped. They cannot block an oversharing flow at PR time, and they cannot tell you which feature introduced it. Detection without prevention.

Reactive, not preventive.

Manual code review

Does not scale to the velocity of AI SDK adoption. Reviewers miss indirect AI calls embedded inside agent frameworks. Coverage drops with team size, exactly when AI integrations multiply.

Brittle at scale.

DPIA spreadsheets

Drift the moment a developer adds a new SDK. The version signed off in design is not the version running in production. Auditors notice the gap. Article 11 expects records that reflect what the system does today.

Documentation, not evidence.
FAQ

EU AI Act compliance questions, answered

The Articles, deadlines, and roles teams ask about most when scoping their AI Act program.

Does the EU AI Act apply to a company based outside the EU?
Yes, if the AI system is placed on the EU market or its outputs affect people in the EU. The EU AI Act has extraterritorial reach similar to GDPR. A US or UK company whose AI features are used by EU customers is in scope, regardless of where the model runs.
What changed for high-risk AI systems with the Digital Omnibus agreement in May 2026?
The Digital Omnibus provisional agreement of 7 May 2026 deferred the headline compliance dates. Annex III high-risk AI obligations move from 2 August 2026 to 2 December 2027. Annex I product-embedded high-risk systems move from 2 August 2027 to 2 August 2028. Article 50(2) watermarking moves to 2 December 2026. Prohibited practices under Article 5 and General-Purpose AI obligations remain in force unchanged, and the August 2026 transparency obligations under Article 50 still apply.
Are we a provider or a deployer when we build features on top of OpenAI, Anthropic, or Gemini?
Most teams that wrap a foundation model in a product feature are deployers under the AI Act. Substantial fine-tuning, retraining, or rebranding can reclassify you as a provider, which carries heavier documentation and conformity obligations. The boundary is interpretive, so map your AI usage carefully and document the modifications your engineering team makes.
How does HoundDog.ai help with Article 11 technical documentation?
HoundDog.ai produces code-based evidence of which AI systems your application calls, which categories of personal and sensitive data flow into each one, and which file, function, and call site each integration originates from. This evidence is reproducible across every scan, traceable to the code that generated it, and is exactly the documentation Article 11 expects organizations to maintain.
What are the maximum fines under the EU AI Act?
Violations of Article 5 prohibited AI practices carry the highest tier, up to 35 million euros or 7 percent of global annual turnover, whichever is higher. Non-compliance with other obligations such as data governance, technical documentation, and transparency carries fines up to 15 million euros or 3 percent of global turnover. Supplying incorrect information to authorities carries up to 7.5 million euros or 1 percent.
Does HoundDog.ai need access to production AI systems?
No. HoundDog.ai runs in your development environment or CI pipeline and analyzes source code statically. It never needs access to your production database, runtime data, live AI traffic, or model providers. All evidence is generated before code reaches production.

Prepare for the EU AI Act with evidence, not assumptions

Build an accurate AI inventory, trace personal data into every LLM prompt, and produce the Article 11 technical documentation your auditors will ask for. From source code, before anything ships.