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Comprehensive vendor assessment: Managing third-party AI risks
Introduction Organizations increasingly rely on third-party vendors, including integrating artificial intelligence (AI) systems, to support their operations. Partnering with third-party vendors can bring various advantages for businesses, such as cost savings, improved efficiency, and access to specialized expertise. However, it is important to note that this approach poses several potential risks, particularly regarding data security, compliance, and operational integrity. Therefore, while partnering with third-party vendors can be beneficial, it is crucial to carefully assess potential risks and establish appropriate measures to mitigate them. This article explores the importance of comprehensive vendor assessment in managing third-party AI risks effectively. Understanding third-party AI risks The deployment of third-party artificial intelligence (AI) systems carries several risks arising due to the inherent complexity of AI technology and the potential for unforeseen consequences. These risks can manifest in various ways, including data breaches, cyber threats, supply chain disruptions, and regulatory non-compliance. Organizations that adopt AI
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