Concept dictionary
Due Diligence
Due diligence is a structured investigation of a proposed vendor, system, transaction, or use before commitment, using evidence proportionate to the decision and risk.
- Review state
- Needs review
- Freshness
- Current
- Version
- 2
Also called
- Due Diligence
- AI Vendor Due Diligence
Remember it this wayVerify the claims before accepting the dependency.
In plain language
The team checks claims about capability, security, privacy, governance, finances, contracts, dependencies, support, and fit rather than relying on a demonstration or sales statement.
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.
Example
Before signing, a company reviews the vendor's architecture, terms, data use, evaluations, incidents, subcontractors, service commitments, exit path, and references.
Common misconception
Due diligence is not a questionnaire completed once. Evidence quality, unresolved findings, changed conditions, and decision ownership matter.
Related terms
Sources
- OECD, Due Diligence Guidance for Responsible Business Conductauthoritative risk-based due-diligence process guidance.
- NIST AI 100-1, Artificial Intelligence Risk Management FrameworkAI-specific governance, measurement, and risk-management context.
Learn more
- Use [[independent-verification|Independent Verification]] for claims whose source shares the vendor's incentives.