Talking Supply Chain: AI tackles the chaos of third-party risk management

Artificial intelligence has taken hold across the enterprise, but nowhere does it face a bigger challenge than in third-party risk management. As explained in this week’s Talking Supply Chain, AI thrives on structure and consistency, yet supplier ecosystems remain fragmented and inconsistent across industries.

Dave Rusher, chief customer officer at Aravo, joins the discussion to explore why the lack of standardization in third-party risk programs makes this area a true stress test for AI.

Rusher notes that while AI has accelerated processes in finance and logistics, its adoption in risk management has been slower. The reason: compliance and security professionals are, by nature, cautious. Companies must weigh the promise of automation against concerns about data privacy, intellectual property, and regulatory exposure. As he explains, AI’s value isn’t in replacing humans but in helping analysts synthesize unstructured data into actionable insights.

Throughout the conversation, Rusher emphasizes that the real goal isn’t efficiency for efficiency’s sake, but better decision-making. By training AI to identify patterns, categorize risks, and recommend actions, organizations can strengthen their overall resilience. However, he cautions that each department—procurement, IT, legal, and compliance—still tends to work in silos, slowing holistic adoption. AI could eventually bridge those gaps by preserving institutional knowledge even as people and roles change.

Looking ahead, Rusher believes AI will become a long-term participant in enterprise risk strategies, not a short-term tech project.

Listen to the full episode.

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