If a firm thinks it is insulated from use of artificial intelligence (AI) by its vendors, “[it’s] probably not,” cautioned ACA Aponix partner Michael Pappacena during an ACA program on managing the risks posed by vendors’ use of AI. Vendors are not only offering AI tools and solutions but also incorporating it behind the scenes to streamline their operations. To help firms navigate the operational and data security risks posed by third-party use of AI, Pappacena and ACA Aponix director John de Freitas discussed the ever-expanding use of AI by third-party service providers, the evolving AI risk landscape, appropriate implementation of AI, AI governance best practices and incident response. This article distills their insights. See “Managing Risks Associated With Outsourcing” (Jul. 20, 2023).