It assumes greater direct obligations and higher potential: Compared with buying, which consequence most

Building and deploying its own model means the company takes on the developer/provider obligations and greater potential liability that a vendor would otherwise carry.

The question

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1. It transfers most development-related liability to the model's vendor

   Plausible if buying, but building in-house removes the external vendor, so liability cannot be transferred that way.
2. It assumes greater direct obligations and higher potential liability ✓

   Building its own model shifts development and provider-side duties onto the company, increasing its obligations and liability.
3. It removes the need for any post-deployment monitoring of outputs

   Appealing but false, since a self-built model still requires ongoing monitoring like any deployed system.
4. It eliminates data-governance duties over the training dataset used

   Incorrect, because owning the model actually deepens responsibility for the training data's governance.

How to remember it

Building and deploying its own model means the company takes on the developer/provider obligations and greater potential liability that a vendor would otherwise carry.

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