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Practical Governance for Enterprise AI

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Vendor Governance

Vendor governance refers to the processes and controls that organizations establish to manage third-party AI vendors and service providers throughout their lifecycle, from selection and onboarding through ongoing monitoring and termination. This is critical for enterprise AI governance because vendors often have access to sensitive data, influence model performance, and create compliance risks that the organization remains ultimately responsible for. Effective vendor governance ensures contractual accountability, validates that vendors meet security and ethical standards, and maintains visibility into how external parties build or deploy AI systems on behalf of the enterprise.

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