In this tutorial, we explore how to design production-grade safety for LLM-based applications using the NeMo Guardrails framework. We move beyond simple prompt filtering to implement a layered architecture, featuring deterministic PII redaction, retrieval filtering, output masking, and policy-based tool gating. By integrating stateful multi-turn evaluation and detailed activation tracing, we demonstrate how to build an auditable, secure, and cost-effective AI assistant capable of managing sensitive financial interactions while maintaining strict compliance standards
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