With 78% of organizations using AI in some capacity, it is essential to recognize that risks are not solely internal but also related to third-party vendors. Vendors utilizing AI may pose hidden liabilities, such as mishandling sensitive data or misleading outputs. To mitigate these risks, organizations should include specific clauses in contracts: first, requiring disclosure of AI use; second, ensuring data usage limitations to protect sensitive information; third, mandating human oversight for critical decisions; and finally, assigning liability for any negative outcomes back to vendors.
Failing to address these points can lead to regulatory penalties and reputational damage, especially with the ongoing evolution of AI regulations such as the EU AI Act. By proactively including these provisions in contracts, organizations can establish their first line of defense against potential risks associated with third-party AI use. This proactive approach not only strengthens legal agreements but also fosters responsible AI governance across partnerships and business operations.
👉 Pročitaj original: CIO Magazine
