Enterprises increasingly deploy AI systems they did not build, yet courts and regulators are holding them responsible when those tools discriminate, mishandle data, or harm customers. Recent lawsuits against Peloton, iTutorGroup, Workday, Cigna, and others show that accountability tends to fall on the organization closest to the end user, not the model provider. To minimize risk, companies need to understand four under‑managed exposures: opacity in upstream models, liability triggered by customization, dependence on hard‑to‑replace vendors, and fragmented regulatory demands. To prevent risk, firms must be more proactive: hard‑wiring transparency into contracts, formally governing customization, designing for portability, and anchoring compliance in frameworks like NIST AI RMF or ISO/IEC 42001 to reduce risk and enable confident AI adoption.

Enterprises increasingly deploy AI systems they did not build, yet courts and regulators are holding them responsible when those tools discriminate, mishandle data, or harm…

Enterprise AI success depends on flexibility, governance and avoiding vendor lock-in. Learn why CEOs are rethinking AI strategy to reduce risk and drive growth.