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AI Governance Institute

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Third-Party Compliance

Third-party compliance refers to the governance frameworks and processes that enterprises use to ensure external vendors, service providers, and partners meet regulatory requirements and security standards. This includes vendor risk assessments, contractual controls, and ongoing monitoring to verify that third parties handling sensitive data or AI systems adhere to applicable laws like GDPR, HIPAA, and sector-specific regulations. For AI governance specifically, third-party compliance becomes critical when organizations rely on external model providers, data processors, or AI infrastructure vendors, as enterprises remain legally liable for downstream compliance failures by their partners.

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