diff --git a/nemoguardrails/library/privateai/actions.py b/nemoguardrails/library/privateai/actions.py
index ade2e3abc..1c31efc2a 100644
--- a/nemoguardrails/library/privateai/actions.py
+++ b/nemoguardrails/library/privateai/actions.py
@@ -17,6 +17,7 @@
 
 import logging
 import os
+from urllib.parse import urlparse
 
 from nemoguardrails import RailsConfig
 from nemoguardrails.actions import action
@@ -44,7 +45,8 @@ async def detect_pii(source: str, text: str, config: RailsConfig):
     server_endpoint = pai_config.server_endpoint
     enabled_entities = getattr(pai_config, source).entities
 
-    if "api.private-ai.com" in server_endpoint and not pai_api_key:
+    parsed_url = urlparse(server_endpoint)
+    if parsed_url.hostname == "api.private-ai.com" and not pai_api_key:
         raise ValueError(
             "PAI_API_KEY environment variable required for Private AI cloud API."
         )
diff --git a/nemoguardrails/library/privateai/request.py b/nemoguardrails/library/privateai/request.py
index 9662c8856..dfa586bee 100644
--- a/nemoguardrails/library/privateai/request.py
+++ b/nemoguardrails/library/privateai/request.py
@@ -18,6 +18,7 @@
 import json
 import logging
 from typing import Any, Dict, List, Optional
+from urllib.parse import urlparse
 
 import aiohttp
 
@@ -42,7 +43,8 @@ async def private_ai_detection_request(
     Returns:
         True if PII is detected, False otherwise.
     """
-    if "api.private-ai.com" in server_endpoint and not api_key:
+    parsed_url = urlparse(server_endpoint)
+    if parsed_url.hostname == "api.private-ai.com" and not api_key:
         raise ValueError("'api_key' is required for Private AI cloud API.")
 
     payload: Dict[str, Any] = {