AI Governance Institute
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Fine-Tuning Risk

Fine-tuning risk refers to the potential harms and compliance challenges that emerge when organizations customize pre-trained large language models or foundation models with proprietary or sensitive data. These risks include data leakage, where confidential information becomes embedded in model weights, intellectual property contamination, and the introduction of biases or unsafe behaviors that persist through the customized model. For enterprise governance, fine-tuning risk matters because it represents a critical control point where organizations must establish clear policies around data preparation, validation procedures, and output monitoring to ensure customized models remain compliant with regulatory requirements and organizational risk tolerance.

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