Polygraf AI closes $9.5M Seed Round led by Allegis Capital
Polygraf AI closes $9.5M Seed Round led by Allegis Capital
Passing client and customer data to LLMs without explicit consent creates significant legal exposure under wiretapping statutes, two-party consent laws, and GDPR requirements.
Statutory damages per violation
U.S. states with two-party consent
GDPR fine as % of global revenue
Increase in AI privacy lawsuits (YoY)
The Problem
Every time customer data flows through an LLM without proper consent, your organization faces compounding legal, financial, and reputational risk.
CIPA VIOLATIONS
Recording or intercepting confidential communications without consent violates CIPA (Cal. Penal Code § 631). Sending customer conversations to AI models can constitute illegal wiretapping under two-party consent jurisdictions.
GDPR ARTICLE 6/9
Processing personal data through LLMs without lawful basis under GDPR Article 6, or processing special category data without explicit consent under Article 9, exposes organizations to fines up to 4% of global annual turnover.
TWO-PARTY CONSENT
Twelve U.S. states require all-party consent to record communications. AI meeting bots, transcription services, and LLM-powered analytics that process conversations without explicit consent from all parties face statutory damages.
Financial Exposure
Recent class-action lawsuits against companies using AI meeting bots have resulted in multi-million dollar settlements. Statutory damages under wiretapping laws can reach $5,000 per violation — per person, per conversation.
The Solution
Polygraf AI deploys as a container in your environment — no data ever leaves your infrastructure. SLMs enforce privacy policies at machine speed, in real-time.
Firewall
SLM Powered
Polygraf intercepts every data flow between your application and LLM providers, enforcing privacy policies in real-time before any data leaves your environment.
Purpose-built SLMs run on-premises or in your private cloud — detecting PII, consent violations, and regulated data without sending anything to external APIs.
Customer names, conversations, and personal data are automatically detected and anonymized before reaching any LLM. De-anonymization happens only on the return path, within your secure environment.
Every interaction with AI is logged and verifiable. Export detailed reports to prove compliance with GDPR, HIPAA, and industry-specific regulations.
How It Works
01
Polygraf’s AI Application Firewall sits between your application and any LLM provider, inspecting every prompt and data payload in real-time.
02
SLMs automatically detect and mask PII, client conversations, and regulated data. Consent policies are enforced before any data reaches external models.
03
Every interaction is logged with tamper-proof audit trails. Generate compliance reports for CIPA, GDPR, HIPAA, and two-party consent requirements on demand.
Deploy Polygraf's AI Application Firewall in under an hour. No changes to your existing workflows. Full compliance from day one.
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Data Privacy 
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