Scaling Policy Compliance Assessment in Language Models with Policy Reasoning Traces
On the map: LLM reasoning → Reasoning for agents, planning and code
Abstract (arXiv)
Policy compliance assessment is a fundamental task of evaluating whether an input case strictly complies with a set of human-defined rules, more generally known as policies. In practice, human experts follow a systematic, step-by-step process to identify violations with respect to specific stipulations outlined in the policy. However, such documentation of gold-standard, expert-level reasoning processes is costly to acquire. In this paper, we introduce Policy Reasoning Traces (PRT), a form of specialized generated reasoning chains that serve as a reasoning bridge to improve an LLM's policy compliance assessment capabilities. Our empirical evaluations demonstrate that the use of PRTs for both inference-time and training-time scenarios significantly enhances the performance of open-weight and commercial models, setting a new state-of-the-art for HIPAA and GDPR policies. Beyond accuracy gains, we also highlight how PRTs can improve an LLM's ability to accurately cite policy clauses, as well as influence compliance decisions through their high utilization from the raw chains of thought.
Key facts. Cited by 4 papers in the map (data through 14 Oct 2026). Placed in Reasoning for agents, planning and code, one of 17 directions in LLM reasoning. Builds on 19 of its 62 references that are in the map. First posted on arXiv 27 Sep 2025.
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19 of 62 references.
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Other references · 18
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6 more
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- 2025ContractEval: Benchmarking LLMs for Clause-Level Legal Risk Identification in Commercial Contractscited by 9
- 2024Leveraging Graph-RAG and Prompt Engineering to Enhance LLM-Based Automated Requirement Traceability and Compliance Checkscited by 6
- 2025Standardizing Intelligence: Aligning Generative AI for Regulatory and Operational Compliancecited by 5
- 2025Policy Frameworks for Transparent Chain-of-Thought Reasoning in Large Language Modelscited by 4
- 2025Multi-Stage Retrieval for Operational Technology Cybersecurity Compliance Using Large Language Models: A Railway Casestudycited by 1
Built on by
Citing papers per year: 2026: 4.
4 papers.
- 2026Safer Policy Compliance with Dynamic Epistemic Fallbackcited by 1
- 2026Policy Compliance of User Requests in Natural Language for AI Systemscited by 0
- 2026Evaluation Pitfalls and Sparsity Limitations in LLM-based Confidence Estimates for Classificationcited by 0
- 2026JPO: Juris Policy Optimization for Structured Legal Reasoning in Criminal Judgment Predictioncited by 0
- 2026JPO: Juris Policy Optimization for Structured Legal Reasoning in Criminal Judgment Prediction30 Aug 2026
- 2026Evaluation Pitfalls and Sparsity Limitations in LLM-based Confidence Estimates for Classification5 Aug 2026
- 2026Policy Compliance of User Requests in Natural Language for AI Systems27 Feb 2026
- 2026Safer Policy Compliance with Dynamic Epistemic Fallback30 Jan 2026
Similar, not cited
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