AI Agent Use Case: Third-Party Risk Management for Financial Services

This IDC Perspective explores the increasing complexity of third-party risk management (TPRM) in financial services and how AI-driven automation is addressing inefficiencies caused by manual processes and fragmented data integration. The integration of agentic AI into third-party risk management is transforming the way financial institutions manage vendor relationships, regulatory compliance, and operational risks. By seamlessly passing data across TPRM workflows, agentic AI enhances vendor selection, due diligence, contract management, ongoing monitoring, and incident response, significantly improving risk oversight and compliance readiness. As regulatory expectations evolve, the adoption of AI agents is no longer optional but a strategic imperative for banks seeking to strengthen governance, reduce costs, and improve vendor transparency."The financial industry has long struggled with the inefficiencies of manual third-party risk management, leading to costly compliance violations and weak vendor oversight," says Sam Abadir, research director for Risk, Financial Crime, and Compliance at IDC Financial Insights. "Agentic AI changes the game by enabling continuous, real-time risk assessment and automated decision-making across the entire TPRM life cycle. Banks that integrate AI agents into their third-party risk management strategy will not only optimize compliance and strengthen resilience against emerging vendor risks but also reduce costs and enhance vendor relationships."