AI Governance Challenge Puts Focus on Third-Party Vendor Risk and Accountability

As companies integrate generative AI into decision-making and operational processes, the focus of governance has shifted from model performance to accountability. Christopher Mascaro wrote in a PYMNTS eBook that accountability, explainability and risk assessment are all essential, particularly because companies cannot shift all responsibility to vendors when externally sourced models fail.

PYMNTS recently published “AI Governance Is Only as Strong as Its Weakest Vendor” and “Smart Firms Treat Vendor Risk Like Their Own,” arguing that third-party AI should be subject to the same internal standards for review, monitoring and accountability. The reports disclosed neither transaction values nor their exact publication dates.