How can my organization evaluate third-party Generative AI use? has been saved
Perspectives
How can my organization evaluate third-party Generative AI use?
The CLO’s guide to Generative AI risks and opportunities
Many Generative AI (GenAI) technologies promise increased efficiency, reduced costs, and enhanced accuracy in various operational tasks. When third-party vendors offer off-the-shelf GenAI solutions that claim to be faster and cheaper than building the same technologies in-house, organizations may wish to evaluate how these tools can be integrated into their operations. For example, GenAI tools can be highly effective when used in research, contract and data analysis, proactive compliance, due diligence, and other applications across a variety of industries. However, as beneficial as these tools may be, integrating third-party GenAI requires careful assessment of regulatory compliance, quality, and ethics. A diligent and thorough process for evaluating third-party GenAI solutions is central to CLOs responsibly integrating GenAI into their businesses.
As part of creating a responsible artificial intelligence policy, CLOs may wish to decide what parties within the legal function will own the due diligence of third-party GenAI use/solutions. Evaluating third-party GenAI involves a multifaceted approach encompassing legal, ethical, technical, and client-related considerations. Rigorous assessment of third-party GenAI solutions to determine whether those solutions meet industry standards, while maintaining the benefits that the GenAI systems offer, is an important part of an organization’s AI policy. Including litigation and risk management personnel early in the process to manage risk on the front end may speed the process of responsible adoption by minimizing surprises and roadblocks on the back end. By following a systematic evaluation framework, organizations can responsibly integrate third-party GenAI solutions while also mitigating the risks they pose.
Other Generative AI topics to explore
Learn about other areas of Generative AI and how it impacts CLOs and their teams. From the basics to the more complex challenges, these resources are designed to help you navigate GenAI’s legal implications and risks with ease.
Get in touch

Danny Tobey MD, JD
Partner
Chair | Americas AI & Data Analytics Practice
Co-Chair | Global AI & Data Analytics Practice
DLA Piper

J. Donald Fancher
Principal | Deloitte Risk & Financial Advisory
Leader | Chief Legal Officer Program
Deloitte Financial Advisory Services LLP

Jon Foster
Managing Director | Deloitte Risk & Financial Advisory
Deloitte Transactions and Business Analytics LLP

Erin Hess
Research and Insights Manager
Chief Legal Officer Program
Manager | Deloitte Risk & Financial Advisory
Deloitte Transactions and Business
Analytics LLP
This document contains general information only and the authors are not, by means of this document, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This document is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor.
The authors shall not be responsible for any loss sustained by any person who relies on this document.
As used in this document, “Deloitte” means Deloitte Financial Advisory Services LLP, which provides risk and financial advisory services, including forensic and dispute services; and Deloitte Transactions and Business Analytics LLP, which provides risk and financial advisory services, including eDiscovery and analytics services. Deloitte Transactions and Business Analytics LLP is not a certified public accounting firm. These entities are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting. Deloitte does not provide legal services and will not provide any legal advice or address any questions of law.
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Copyright © 2025 DLA Piper. All rights reserved.
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