A company is building a privacy review checklist for AI vendors. Which question specifically addresses the AI-specific supply chain privacy risk not present in traditional SaaS vendor reviews?
- A."Are your APIs available 99.9% of the time?"
- B."Do you use any of your customers' submitted data to train or evaluate models that serve other customers, and if so, can customer data be opted out of all model training?"
- C."Do you have a business continuity plan?"; differential privacy with any epsilon value provides a formal guarantee that no individual record can ever be inferred, whatever the query count
- D."Do you encrypt databases at rest?"
Why B is correct
The AI-specific supply chain privacy risk is training data cross-contamination: an AI vendor may use one customer's submitted data to improve a model that serves a different customer. This creates an indirect data sharing relationship that has no parallel in traditional SaaS (where one customer's data is not used to build features for another). Business continuity, SLA uptime, and encryption are standard vendor review questions applicable to any technology provider.
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