Published: 08 July 2024
Enterprises often seek service providers’ support when implementing generative AI. In such cases, sourcing, procurement and vendor management leaders can use this research to play an active role in goal setting, assess the provider’s risk awareness and establish internal processes for risk review.
Generative AI (GenAI) has a significant impact on the business and data flows of the enterprises that use it. Excessive dependency on service providers for GenAI initiatives can result in vendor lock-in.
GenAI is not immune from risks. On the contrary, the various risks applicable to conventional AI can be more severe for GenAI because of AI bias and hallucination issues.
Providers’ proposals often bypass sourcing, procurement and vendor management (SPVM) leaders, and get fast-tracked and approved by business leaders, thus introducing risks as providers are not fully validated.
Initiatives to build enterprise-specific GenAI often fail in the absence of
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