AI Hiring Glossary

Vendor Due Diligence

AI Vendor Due Diligence

The process of evaluating AI hiring vendors before procurement to assess compliance capabilities, bias audit availability, data practices, liability allocation, and technical performance. Thorough due diligence protects employers from inheriting vendor AI risks.

Why This Matters for Employers

Employers are ultimately liable for discrimination caused by vendor AI tools. NYC LL144 applies even when using third-party AEDTs. Vendor due diligence must verify bias audit availability, contractual liability protections, security practices, and vendor compliance support.

Related Laws & Regulations

NYC Local Law 144
New York City
Colorado AI Act
Colorado
FCRA
Data privacy laws

Examples in Practice

Requesting vendor bias audit reports before procurement
Reviewing vendor contracts for indemnification and liability terms
Evaluating vendor data security and privacy practices
Requiring vendor compliance documentation and support commitments

How EmployArmor Helps

Understanding Vendor Due Diligence is just the first step. EmployArmor helps you implement compliance for all AI hiring regulations.

Compliance Assessment

Find out which laws apply to your AI hiring tools and what you need to do to comply.

Documentation Templates

Get ready-to-use templates for impact assessments, notifications, and audit preparation.