Third-Party AI Platform

A third-party AI platform is an external vendor's AI service, such as a hosted large language model API, an AI-powered SaaS product, or a managed machine learning environment, that an organization uses without owning or directly controlling the underlying models or infrastructure. Governance teams need to track these because data sent to the platform, its model updates, and its security incidents can create liability for the buying organization even though the vendor operates the system. Sound oversight typically depends on contract terms covering data use and retention, audit rights, incident notification, and whether the vendor's model changes can be detected and assessed.

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