From Regulation to Implementation: A Critical Evaluation of LLM-Assisted Regulatory Compliance in Industry

The paper examines how large language models (LLMs) can assist in creating regulatory compliance artifacts for EU sustainability and privacy laws, specifically Digital Product Passports (DPPs) under the Ecodesign for Sustainable Products Regulation and Data Protection Impact Assessments (DPIAs) under the General Data Protection Regulation. It investigates the effects of data extraction instructions and regulatory ambiguity on the quality and consistency of LLM-generated artifacts, benchmarking various models against manually crafted ground‑truth schemas. Findings indicate that looser guidelines, like those for DPIAs, demand more extensive prompts to achieve consistency, whereas stricter formatting rules for DPPs yield consistent outputs but may introduce hallucinations.

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• llms
• benchmarks
• safety