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Practical Governance for Enterprise AI

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Third-Party AI Risk

Third-party AI risk refers to governance and compliance challenges that arise when organizations use AI systems, models, or services developed and operated by external vendors and providers. This includes risks related to data security, model reliability, vendor accountability, and compliance with regulations when AI decision-making is outsourced or integrated from third parties. Managing third-party AI risk is critical for enterprises because it extends their compliance obligations and potential liability to external partners while maintaining visibility and control over AI systems that may impact customers, employees, and regulatory standing.

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