GenAI Supply Chain Governance: Why It’s Necessary & How To Implement It
Many enterprises that have adopted GenAI are still refining their understanding of their governance and GenAI observability responsibilities. It’s one of the biggest challenges that we see C-suite teams trying to navigate, and GenAI observability limits can give way to disastrous consequences. A 2023 study by Ponemon Institute revealed that 53% of organizations have experienced a data breach caused by a third-party vendor (i,e, within the supply chain); and a further 40% of enterprises admitted that they had no visibility into the data security practices of their supply chain partners – so security against third-party breaches is a pressing cause.
The organization’s supply chain falls into this territory – the enterprise needs to ensure its own governance policies are followed by third-party partners, but this network could also be taking its own proactive steps to minimize harmful data risks.
We’re going to examine both sides of the governance question that enterprises and external partners have a duty to answer, and our own AI TRiSM solution is the backbone of this. Read on to find out how.
Understanding what we mean by the supply chain in relation to GenAI
In order to meet workload demands, automate tasks, or hire more efficiently, enterprises across all industries often collaborate with third-party partners, including contractors, freelancers, suppliers, and marketing agencies. Just as they do for Cybersecurity, companies must ensure they can trust the inputs from these partners when they’re using GenAI systems.
This is the supply chain that we are referring to in this context, as those within this network are given access to one key thing – sensitive input data for GenAI systems.
When an enterprise can’t guarantee the supply chain is adhering to its governance standards
The risk that comes with these third parties is in the way that they have a responsibility to handle the enterprises data and systems responsibly – it is required for cybersecurity –but the lines are currently blurred when this principle is applied in relation to using (or misusing) GenAI technologies. As a result, the entire AI software supply chain is now squarely in the spotlight of cyberattackers, according to a recent report from Security Intelligence.
It’s dangerous for organizations to assume that their supply chain partners operate with the same level of caution and oversight, as a company’s own employees would, but this consideration is often missed. Without GenAI governance standards for the supply chain to adhere to, the likelihood of unintentional data leaks, technology misuse, or corruption increases.
For example, an enterprise may hire a contractor to work with sensitive company data, but this individual may choose to run that information through an unsecured or unsanctioned GenAI tool. Without the right governance strategy in place, this could lead to inadvertent data leaks, and compliance and privacy issues. , The consequences could be severe; ranging from data breaches and compliance violations to long-lasting reputational damage – here are some examples:
Data corruption and questionable integrity
Enterprises need to question the safety and integrity of the documents and information they receive from their supply chain. Are the documents they receive secure, and can their progression be mapped by thorough GenAI forensics or through an audit trail? Often, enterprises will be completely oblivious to corruption when working with supply chain partners, even though this risk is very real. .
Malicious attacks
Intentional malware or misinformation via GenAI could bypass traditional cybersecurity measures, meaning the company’s internal systems are compromised. These considerations, when missed, can be hard to find, trace, and rectify.
Lack of visibility into input data
Also concerning is the lack of visibility insights into what is and isn’t run through GenAI systems by these third parties – for example, if any part of the data is intentionally withheld or manipulated, the lack of visibility makes it difficult to understand the full extent of data usage and its potential risks. When governance policies don’t cross over into the supply chain’s practices, it’s hard to reclaim this information.
Using unsanctioned systems
Not all GenAI systems are created equal – and many are not at the level that is necessary for processing sensitive information. Using these poorly-built, security negligent tools is a non-starter in terms of following governance principles.
When these risks are coupled with the growing complexity of GenAI systems, it’s clear that enterprises need more robust mechanisms to protect themselves.
It’s time for the supply chain to take governance into its own hands
There’s a cyclical relationship between the supply chain and the enterprise, so there’s an opportunity for them to solve their shared concern around governance – and the supply chain has a chance to take matters into its own hands here.
At present, many organizations are operating on trust when it comes to their supply chain’s GenAI usage; while the supply chain itself may have inadequate knowledge of how governance protocols could strengthen its appeal to enterprises – i.e, if governance can be assured, the services provided will be more secure, reliable, and compliant.
When the supply chain awakens to investing in GenAI governance software to enhance its own offering, the risk level surrounding sensitive company data becomes minimal, and confidence is instantly boosted at the clients’ end.
Supply chains are already obligated to meet their partners’ (the enterprise) cybersecurity policies, and we could certainly see the same approach being adopted for governance in the future. Invest in GenAI governance software now, and get ahead of the crowds to ensure your services remain competitive in today’s quickly changing market.
The case for supply chain GenAI governance
Establishing robust governance over GenAI use within your supply chain is not just a best practice; it’s a necessity. We provide a framework for enterprises to ensure that their supply chain partners are maintaining the same level of governance and data security as they do internally, and it’s all accessed through our AI TRiSM platform.
End-to-end visibility
We provide end-to-end GenAI visibility, allowing you to see your data is being handled by your supply chain, so your enterprise can monitor who is using GenAI tools, how the data is being processed, and ensure that only authorized personnel have access.
Compliance assurance
With regulations like GDPR and CCPA placing greater emphasis on data protection, it’s non-negotiable that your supply chain partners adhere to the same standards. We help to ensure compliance by providing audit trails to confirm that all usage is in line with regulatory requirements.
Data security & encryption
There’s also a layer of GenAI data security within our platform, designed to keep data encrypted and protected at every stage, from input into GenAI systems to the delivery of final outputs. This way, we’re actively empowering the supply chain and enterprises to eliminate the risk of data corruption, leaks, or malicious tampering.
Proactive threat monitoring
Our multi-purpose platform detects anomalies in GenAI usage within your supply chain, ensuring that any potential threats are detected early and addressed before they escalate into more significant problems.
Building trust through governance with Portal26
Given the high stakes, enterprises can no longer afford to operate on blind trust when it comes to their supply chain’s GenAI usage. With our GenAI governance platform, you gain peace of mind knowing that your data is secure, monitored, and that you have full visibility into how GenAI systems are being used—whether internally or by external partners.
Trust is essential, and with Portal26, you can trust with confidence. Ready to take control of your supply chain’s GenAI governance? Contact us to learn more about how we can help you protect your organization’s data and ensure end-to-end security, arrange a free demo of our solution online now.