European manufacturing group Manufacturing 05.04.2026

GDPR-Compliant AI Document Processing on European Infrastructure

A self-hosted LLM pipeline that extracts, classifies and routes 40,000 documents per month - running entirely on GPU infrastructure in German data centers, with no data ever touching a US API.

vLLM Llama Mistral LangChain PostgreSQL Kubernetes IONOS Cloud

Challenge

The client wanted to automate the intake of supplier invoices, contracts and delivery notes with large language models. Legal blocked every managed AI API: documents contain personal data and trade secrets, and Schrems II ruled out US processors. Off-the-shelf EU offerings could not meet the accuracy bar on German-language business documents.

Approach

We built a document-AI pipeline on open-weight models (Llama, Mistral) served via vLLM on GPU nodes in German data centers. A retrieval layer grounds extraction in the client's own master data, and a human-in-the-loop review queue handles low-confidence results. Evaluation was treated as engineering: a labeled benchmark set of 1,200 real documents, automated regression tests on every model or prompt change, and per-field accuracy dashboards. Data protection by design - no training on customer data, pseudonymization before inference where possible, and DPIA support throughout.

Outcome

96% field-level extraction accuracy on German business documents, surpassing the managed-API baseline. Manual processing effort cut by 70%, full GDPR compliance confirmed by the DPO, and predictable costs: GPU capacity is reserved flat-rate instead of per-token billing.

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