AI Governance Institute
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Third-Party Oversight

Third-party oversight refers to the set of controls an organization uses to monitor, assess, and manage the AI vendors, model providers, and outside service providers it depends on. When a company buys or licenses AI tools from others, it often remains legally and reputationally responsible for outcomes like biased decisions, data leaks, or regulatory violations. For compliance and risk leaders, this means verifying vendor practices through contracts, audits, documentation requests, and ongoing performance reviews rather than relying on a supplier's marketing claims.

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