A lack of transparency about how vendors are using AI can create new risks for firms because vendors are not only offering AI tools and solutions but also incorporating it behind the scenes to streamline their operations. In a recent online presentation, ACA Aponix partner Michael Pappacena and director John de Freitas discussed the ever-expanding use of AI by third-party service providers, the evolving AI risk landscape, appropriate implementation of AI, AI governance best practices and incident response. This article distills their insights. See “Cybersecurity and AI Are Top Global Business Challenges Identified in Kroll Study” (Jul. 16, 2025).