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Vendor & Supply Chain AI Compliance: Trust, but Verify

Dilip Kumar MulluriFebruary 5, 20265 min read

Your AI compliance is only as strong as the third parties you rely on. Here's how to extend governance across your supply chain.

Few organizations build their AI entirely in-house. You license models, integrate APIs, buy tools, and rely on vendors whose systems you don't control. Under modern AI regulation, that doesn't transfer your responsibility away — it extends it. Your compliance is only as strong as your weakest supplier.

Why third parties are a blind spot

When AI capability is embedded in a product you purchase, its risks become your risks the moment you deploy it. Yet most procurement processes were never designed to ask the right questions about training data, bias testing, or a vendor's own compliance posture.

Questions every AI vendor should answer

  • How was the model trained, and on what data?
  • What testing has been done for bias, accuracy, and robustness?
  • What documentation can you provide to support our compliance obligations?
  • How are updates and model changes communicated to us?
  • What is your own regulatory and security posture?
Contracts and certifications are necessary, but they aren't sufficient. Trust, but verify — and document the verification.

Building supply-chain governance

Effective programs build AI due diligence into procurement, maintain an inventory of third-party AI components, require evidence rather than assurances, and reassess vendors periodically. A vendor and supply-chain compliance audit gives you a clear picture of where your exposure really sits — often in places you didn't expect.

Written by Dilip Kumar Mulluri at Ethos AI Consultancy. Need help with AI compliance? Get in touch →

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