Where TPRM Meets AI: Balancing Risk & Reward

This comprehensive report explores the expanding universe of third-party risk management and how artificial intelligence serves as both a powerful efficiency driver and a new risk category requiring governance. As organizations face increasing regulatory demands, deeper supply chain scrutiny, and resource constraints, the intersection of TPRM and AI presents unique challenges and opportunities.

Key insights include:

• Only 6% of organizations have full visibility into how their vendors leverage AI tools, while 25% have no visibility at all, creating significant blind spots in risk management.
• AI-powered due diligence solutions can reduce false positives by up to 77% and support 50% faster vendor onboarding, dramatically improving efficiency.
• Despite AI’s advantages, only 15% of organizations currently include AI usage clauses in their third-party codes of conduct, highlighting a critical governance gap.
• Organizations implementing best-in-class TPRM programs focus on five key pillars: comprehensive third-party inventory, risk identification, due diligence, continuous monitoring, and issue remediation.