AI Vendor Risk

AI vendor risk is the exposure an organization takes on when it relies on outside companies to supply, host, or run AI models, tools, or data services. It covers questions like whether a provider trains on customer data, where that data is stored, how the provider handles security incidents, and whether it can keep its promises if its own models change or it is acquired. For compliance and risk teams, it matters because the organization usually remains legally responsible for outcomes even when a third party builds the system, so contracts, audits, and ongoing monitoring of AI suppliers need to be treated as governance obligations.

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