Vendor Assessment for AI: A Strategic Guide for Business Leaders

As organizations increasingly rely on third-party vendors for AI capabilities, robust, structured vendor assessments have become a strategic imperative, especially in regulated sectors like finance and healthcare. This white paper outlines a comprehensive framework for evaluating AI vendors across six critical domains: transparency, data privacy, regulatory compliance, governance, ethics, and risk management. Through practical examples and industry insights, it highlights the risks posed by unvetted AI solutions and presents best practices for mitigating them. The paper also demonstrates how platforms like Batoi Insight enable risk quantification and generate AI-driven recommendations, helping organizations streamline due diligence and make informed decisions. By adopting a proactive, policy-aligned approach to AI vendor assessment, business leaders can ensure compliance, uphold ethical standards, and protect stakeholder trust in an AI-driven future.