Imagine yourself: It’s 4:00 PM on a Tuesday afternoon. You have two 50-page PDFs open on two screens.

On the left: Your internal Supplier Code of Conduct or Quality Playbook.
On the right: A supplier’s custom policy.

Your job isn't just to find the line where their policy falls short. It's to judge whether that deviation is a minor wording difference or a genuine compliance risk that needs escalating. It's tedious, prone to human error, and a waste of your expertise. This is the daily reality for sustainability, compliance, and procurement managers who feel like "human highlighters" rather than risk managers.

And the volume is only going to get worse. A wave of European regulation is expanding who you need to scrutinize and what you need to assess. LkSG already requires risk-based due diligence across your supplier base. CSDDD will extend that obligation EU-wide. EUDR demands traceability documentation down to plot-level geolocation. CBAM requires validated embedded emissions data from carbon-intensive imports. PPWR adds material declarations for packaging. Each new regulation means more supplier documents, more criteria to assess against, and more risk judgments to make – at scale.

And when the volume hits 500 or 1,000 documents, the human brain simply can't keep up.

The Sweet Temptation: Shadow AI and Context Rot

When the manual analysis becomes unbearable, teams look for shortcuts, such as asking Large Language Models (LLMs) to scan documents for potential risks, even without official approval. This is usually referred to as Shadow AI, whereby employees turn to AI solutions without proper guidance or security measures in place. It’s understandable. It’s also dangerous.

Because the task is so repetitive, it’s tempting to copy-paste a sensitive contract into a public AI tool like ChatGPT just to get to the essence quickly. But this creates two serious risks:

1. The Security Leak: You are training public models with your company’s proprietary legal requirements and confidential supplier data.
2. Context Rot: General-purpose AI is built for conversation, not auditing. It loses the thread across long documents, lacks the traceable Proof an audit requires, and hallucinates gaps that don't exist — or misses risks that do. All while sounding completely confident.

If you can’t click back to the source text to verify a claim, the AI’s output is just noise.

Introducing Compliance Check: A Dedicated Proof AI Agent

Compliance Check is Sunhat's answer to both problems.

It's a universal Proof AI agent that acts as your always-on auditor. It analyses your internal standard against an incoming document to automate gap identification and risk assessment in minutes. The scope is deliberately broad: a supplier's MSDS checked against your Restricted Substances List, a PFAS-free declaration assessed against your policy thresholds, an LTSD verified against FTA rules of origin, a Code of Conduct cross-referenced against your mandatory supplier standards. Any document becomes instantly auditable.

Upstream & Downstream: Analyzing Documents Both Directions

The most obvious workflow is upstream: screening suppliers at onboarding or during annual re-assessments, across hundreds of documents, against the same criteria every time. But the pressure runs in both directions. As a supplier yourself, you're increasingly asked to sign a customer's Code of Conduct, confirm PFAS-free compliance before a tender, or provide validated emissions data before a purchase order is released. Getting this wrong — signing something your own documentation doesn't support — is its own risk. Compliance Check covers both directions: assessing what comes in from your suppliers (upstream), and verifying your own readiness before you put pen to paper (downstream).

How it Works:

• Auto-Baseline: Upload your internal standard once. The Agent automatically extracts the criteria—no manual configuration or complex prompting required.
• Universal Input: Drag and drop any incoming PDF, from technical specs to sourcing declarations.
• Automated Gap Analysis: The AI flags discrepancies, missing clauses, or unacceptable terms.
• Risk Scoring: Get an immediate overview of match percentages and risk levels (Low, Medium, High) across all assessed documents.

Unlike public AI, Sunhat’s Collaborative Proof Platform provides "Click-to-Source" traceability and only works with data you entered in advance. Every flagged deviation links directly to the exact line in the PDF. The speed of AI, the certainty of a human review. No hallucinations, no missed risks.

Built with Purpose. Based on Expert Input.

We built Compliance Check based on direct feedback from compliance and sustainability practitioners who described the same broken workflow: the "email ping-pong" with Legal and Finance every time a supplier document didn't meet an internal standard, and the hours spent not just finding deviations but judging their severity and deciding what to do next.

When Sunhat flags a gap, you don't leave the platform to chase a colleague. You assign a task. The collaboration happens where the data lives. And because every assessment is stored as Proof alongside the document, you have a complete audit trail ready in one click. No more Knowledge Amnesia when renewal season arrives or an auditor asks for evidence.

Reclaiming Your Expertise

The goal of the Compliance Check isn't to replace the human in the loop. It's to replace the admin burden. 

Your expertise is too valuable to spend on documents that haven't changed in ten years. By reducing assessment effort by up to 90%, you can ignore the noise and focus on the deviations that actually represent a risk to your business.

It’s time to stop the document slog and start the audit. 

Ready to stop reviewing and start auditing? Explore 36+ use cases of the Compliance Check with us — book a personal consultation.