It gains greater control and customization but assumes: Which statement best captures a distinctive

Building its own model gives control and customization but adds obligations and liability the company cannot shift to a vendor.

The question

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1. It eliminates all data-governance responsibilities because the training data and model weights now remain entirely within its own internal infrastructure.

   Wrong because owning the data and weights increases, rather than removes, data-governance duties.
2. It transfers most legal accountability for harmful outputs to the third-party vendor that supplied the underlying foundation model to the company.

   Wrong because a self-built proprietary model has no such vendor to absorb accountability for its outputs.
3. It removes the need for ongoing monitoring, since a self-built model does not change after it is initially trained and then released into production.

   Plausible but wrong because any deployed model still requires monitoring for drift and degradation over time.
4. It gains greater control and customization but assumes increased obligations and higher potential liability for the model's development and its outcomes. ✓

   Correct because owning the model concentrates development responsibility and liability that a vendor would otherwise share or bear.

How to remember it

Building its own model gives control and customization but adds obligations and liability the company cannot shift to a vendor.

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