Greater control and differentiation come with increased: Which statement most accurately captures the
Building your own model trades greater control for increased obligations and higher potential liability.
The question
A firm is deciding whether to build its own proprietary AI model instead of licensing one, attracted by greater control and differentiation. Which statement most accurately captures the trade-off it should weigh?
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- Greater control is gained while all governance and compliance obligations shift entirely to the model's end usersObligations cannot be offloaded to users; the deploying firm retains accountability for its own model.
- Greater differentiation is gained and the firm becomes exempt from most applicable AI regulationBuilding in-house does not confer any regulatory exemption on the firm.
- Greater control and differentiation come with increased obligations and higher potential liability for the firm ✓Owning the model brings both the upside of control and the burden of heightened obligations and liability, the real trade-off.
- Greater control is gained and the model will never require any post-deployment monitoring at allAll deployed models require ongoing monitoring regardless of whether they are built or bought.
The trap
Seeing only the control benefits of building in-house while assuming the added obligations vanish or shift to others. How to remember it
Building your own model trades greater control for increased obligations and higher potential liability.
How many of these would you get right?
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Every answer, right and wrong, comes with its own explanation.