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Practical Governance for Enterprise AI

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Vendor Management

Vendor management in AI governance refers to the processes and controls organizations implement to evaluate, monitor, and manage third-party AI providers and suppliers throughout their lifecycle. This is critical for enterprises because external AI vendors introduce risks around data security, model reliability, regulatory compliance, and intellectual property that must be actively overseen through contractual obligations, audits, and performance assessments. Strong vendor management ensures organizations maintain visibility into how their AI systems are developed and maintained while protecting against supply chain vulnerabilities and vendor lock-in situations.

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