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Review Due Diligence

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Definition

Due diligence is a structured investigation of a proposed vendor, system, transaction, or use before commitment, using evidence proportionate to the decision and risk.
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Plain-Language Explanation

The team checks claims about capability, security, privacy, governance, finances, contracts, dependencies, support, and fit rather than relying on a demonstration or sales statement.
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Why It Matters

AI products can hide shared infrastructure, uncertain data practices, fast-changing features, and unclear responsibility. A disciplined review makes assumptions and residual risk visible.
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Example

Before signing, a company reviews the vendor's architecture, terms, data use, evaluations, incidents, subcontractors, service commitments, exit path, and references.
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Common Misconception

Due diligence is not a questionnaire completed once. Evidence quality, unresolved findings, changed conditions, and decision ownership matter.
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Remember It This Way

Verify the claims before accepting the dependency.
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Related Terms

* [[verification|Verification]] * [[independent-verification|Independent Verification]] * [[evidence-selection|Evidence Selection]] * [[vendor-lock-in|Vendor Lock-In]] * [[service-level-agreement|Service-Level Agreement]]
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Sources

* [OECD, Due Diligence Guidance for Responsible Business Conduct](https://www.oecd.org/en/topics/sub-issues/due-diligence-guidance-for-responsible-business-conduct.html) — authoritative risk-based due-diligence process guidance. * [NIST AI 100-1, Artificial Intelligence Risk Management Framework](https://doi.org/10.6028/NIST.AI.100-1) — AI-specific governance, measurement, and risk-management context.
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Learn More

* Use [[independent-verification|Independent Verification]] for claims whose source shares the vendor's incentives.
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