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Third-Party AI
Third-party AI refers to artificial intelligence systems, models, or services developed and maintained by external vendors rather than built in-house by an organization. For enterprise governance, third-party AI introduces critical compliance and risk management challenges, including vendor lock-in, limited transparency into model training data and algorithms, and dependency on external parties for security updates and regulatory compliance. Organizations must implement robust vendor assessment frameworks, contractual safeguards, and ongoing monitoring to ensure third-party AI systems meet their governance standards and regulatory requirements.
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