AI Governance Institute
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Vendor Data Use

Vendor data use refers to how third-party service providers, software vendors, and technology partners handle, process, and retain data that organizations share with them. This is a critical governance concern because vendors often have broad access to sensitive customer, employee, and operational data, creating potential risks around privacy, security, and regulatory compliance. Organizations must establish clear contractual terms, audit vendor practices, and monitor data handling to ensure third parties comply with applicable regulations like GDPR, CCPA, and industry-specific standards, while also protecting against unauthorized data monetization or misuse.

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