**AI Vendors’ Marketing Materials Create Compliance Gap for Procurement Teams**
Procurement teams in regulated industries are onboarding AI vendors solely based on marketing materials, exposing organizations to significant risks. This compliance gap is the most common issue identified during AI-washing investigations.
The development of AI has been rapid, and many healthcare, insurance, and financial services organizations have incorporated these solutions into their operations. However, AI solutions often claim capabilities they cannot deliver or exaggerate results for unclear reasons. When procurement teams rely solely on marketing materials to evaluate vendors’ claims, they may end up deploying systems that fail to meet the promised standards.
This exposure can lead to two main risks: capability risk and liability risk. Capability risk arises when the technology does not perform as claimed, leading to delays, reduced quality of services, or even loss of revenue. Liability risk occurs when organizations are held accountable for what their AI systems do and say, including potential harm caused by incorrect results.
To mitigate these risks, prudent organizations must take immediate action. First, they should re-examine the marketing materials provided by vendors, questioning the basis of claims and seeking additional information to support them. Second, procurement teams should assess vendor capabilities against the organization’s operational requirements and internal governance processes to ensure that their AI solutions align with regulatory expectations.
Finally, organizations may struggle to evaluate these risks independently due to limited resources or internal biases. This is where independent validation firms like Straven & Co can help. By examining AI decisions against an organization’s operations, its people, its governance and legal exposure, and the vendor’s actual claims, Straven delivers a plain verdict: proceed, proceed with conditions, or do not.
**Straven & Co examines AI decisions before they are acted on: stravenandco.com**
Please note that any factual claim in this article was verified through a recent web search.