Third-party AI Risk: The Vendor Questions CX Must Ask
In today’s rapidly evolving technological landscape, leaders are feeling the pressure to adopt AI solutions from boards, competitors, and vendors. However, this rush often occurs without a comprehensive understanding of how AI functions or the necessary guardrails in place. This article delves into the complexities and risks associated with third-party AI solutions and outlines essential vendor questions for customer experience (CX) leaders.
The Complexity of AI Adoption
The integration of agentic AI and interconnected cloud systems has significantly increased the complexity of implementing AI solutions. As organizations dive into AI, concerns regarding data security and privacy emerge, highlighting the need for careful consideration and assessment.
Understanding Third-party AI Risk
Third-party AI risk encompasses the potential pitfalls that organizations face when relying on external vendors for AI technologies. It’s crucial to recognize that customers often hold the brand accountable for any issues that arise, rather than the vendor. This misalignment can lead to broken workflows and ineffective communication during incidents.
Key Questions to Ask Vendors
To mitigate risks, CX leaders must engage vendors with pointed questions regarding:
- Data Management: How is customer data handled, stored, and protected?
- Governance: What governance frameworks are in place to ensure compliance and accountability?
- Model Performance: How is the performance of AI models monitored and evaluated?
These inquiries can help organizations gain deeper insights into the third-party solutions they consider integrating.
Collaboration Across Departments
Effective collaboration among security, procurement, finance, and legal departments is essential for successful AI adoption. By working together, these teams can create a comprehensive strategy that addresses potential risks and aligns with overall business objectives.
A Deliberate Approach to AI
In the face of AI hype, organizations are urged to adopt a more measured approach. Rather than acting like the “hare” racing towards AI adoption, businesses should embrace the “tortoise” mentality—prioritizing trust and careful planning over speed. This deliberate strategy can lead to more sustainable and beneficial AI implementations.
If your organization is considering incorporating AI into its CX stack, the insights and recommendations outlined in this discussion are invaluable. Taking the time to ask the right questions and foster cross-departmental collaboration can set the stage for successful AI integration and ultimately enhance customer experiences.
