The company assumes increased obligations and higher: Which consequence is most uniquely associated with

Building your own model concentrates obligations and liability on the company across the lifecycle.

The question

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1. The company is automatically exempt from every applicable AI-related regulatory requirement in its markets

   Building in-house does not exempt an organization from regulation; if anything it concentrates responsibility on it.
2. The company assumes increased obligations and higher potential liability across the full model lifecycle ✓

   Owning the model means the company itself carries the accountability and liability a vendor would otherwise share or absorb.
3. The company permanently eliminates the need to monitor the model at all after it has been deployed

   Ongoing monitoring is still required regardless of whether the model is built or bought.
4. The company transfers all of its downstream accountability directly onto the end users of the model

   Accountability cannot simply be shifted to users; the deploying company retains its governance duties.

How to remember it

Building your own model concentrates obligations and liability on the company across the lifecycle.

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