Third-Party AI Risk Management: The Embedded-Model Problem
The hardest third-party AI risk to manage is the AI you did not know a vendor was running. A SaaS tool summarizes your tickets with an LLM, a quality vendor scores your files with a model, and your data leaves for an endpoint you never approved. This walks the third-party AI risk lifecycle, from discovery through offboarding, centered on embedded and subprocessor AI, model-provider concentration, and the due-care obligation a SOC 2 report does not discharge.