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Supplier Due Diligence
Supplier due diligence is the process of vetting third-party vendors before and during a business relationship, covering their security practices, data handling, legal exposure, and financial stability. For AI governance, it extends to the AI models, training data sources, and cloud or API providers a company depends on, since a vendor's weak controls or unclear data rights can become the company's own regulatory and liability problem. Regulators such as those enforcing the EU AI Act increasingly expect organizations to document how they assess and monitor these suppliers.
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