Choppy Waters: AI Risk, Its Global Scrutiny, and Why Intelligent Tech Matters

October 28th, 2025 Daniel Philemon Reading Time: 3 minutes
Choppy Waters: AI Risk, Its Global Scrutiny, and Why Intelligent Tech Matters Feature Image

As artificial intelligence (AI) adoption surges across industries, so too does the rising tide of regulatory attention. 

From the EU AI Act’s structured, risk-based framework to Japan’s more fluid, innovation-friendly guidelines, global regulatory currents are moving in different directions. China, Brazil, and the United States are also charting distinct courses, each reshaping the landscape of AI compliance in its own way. 

For third-party risk management (TPRM) professionals, these shifting conditions present a growing challenge: how to manage AI-related risks while staying upright in a sea of contrasting values, oversight models, and definitions of responsible AI. 

To maintain balance, many organizations are turning to TPRM platforms that can respond with agility.  

Aravo offers precisely that kind of responsiveness, providing mature questionnaire capabilities designed to adjust to the changing regulatory swell. Here are three ways that Aravo’s questionnaires can help you stay ahead of the curve. 

1. Conditional Logic That Adapts by Geography and Risk Profile 

AI regulations aren’t cut from the same cloth. Each region sets its own tide: 

  • The EU AI Act classifies systems across four risk tiers, with deep compliance requirements for high-risk use cases. 
  • Japan encourages a self-regulating, principle-based approach that invites innovation while promoting responsibility. 
  • China enforces strict oversight, requiring algorithm registration and alignment with state values. 
  • Brazil’s draft legislation centers human rights and mandates oversight for high-risk AI. 
  • The U.S. approach, led by Executive Order 14110, connects AI governance with safety, procurement, and civil rights frameworks like the NIST AI RMF. 

Third parties in these regions face different obligations and operate under distinct perspectives. Aravo’s conditional questionnaire logic allows TPRM teams to tailor assessments based on where a third party is located, which sector they operate in, and how they apply AI. 

For instance: 

  • A vendor in China may be asked to submit CAC filings, algorithm transparency reports, and details on moderation practices. 
  • A partner in Brazil might need to evaluate their AI system’s risk level and demonstrate safeguards like human-in-the-loop processes. 
  • A U.S. federal supplier could be required to attest to compliance with NIST frameworks and fairness testing. 

This level of contextual precision helps organizations evaluate third parties with just the right level of scrutiny, without overburdening them unnecessarily. 

2. Validation Frameworks That Keep Data Clean and Ready for Inspection 

Risk assessments are only as strong as the data behind them. When gathering information from third parties, it’s essential to validate that responses are complete and clear.  Without reliable data, it’s easy to wipe out. 

That’s why Aravo includes built-in validation tools that ensure the responses gathered from third parties meet high standards. Whether it’s attaching required documentation, confirming data provenance, or verifying consistency, these frameworks help organizations ensure their assessments hold up under regulatory review. 

Examples from the global surf: 

  • A supplier in the EU may need to submit their bias mitigation strategies and risk classification under the EU AI Act. 
  • A partner in China could be asked for algorithm registration details and labels for generative outputs. 
  • Brazilian respondents might have to classify systems under the draft AI Bill and include documentation showing human oversight. 
  • In the U.S., federal contractors may need to share testing protocols and audits aligned with the AI Bill of Rights or NIST standards. 

With built-in validations, TPRM teams can be confident that data is regulator-ready, legally defensible, and robust enough to support ongoing monitoring and auditability. 

3. Dynamic Formatting That Aligns with Diverse AI Governance Philosophies 

Much like coastlines vary across the world, so too do the philosophies shaping AI governance: 

  • The EU centers on fundamental rights and system transparency. 
  • Japan leans into voluntary accountability and responsible growth. 
  • China emphasizes centralized control and ideological alignment. 
  • Brazil highlights dignity, equity, and proportionality in risk. 
  • The U.S. tends to blend civil rights with industry-specific standards and accountability. 

Aravo’s flexible questionnaire design gives organizations the freedom to shape their assessments in ways that reflect local values. You can: 

  • Group questions by themes such as explainability, bias mitigation, or user consent. 
  • Reference governance models like the OECD AI Principles, ISO/IEC 42001, or specific national requirements. 
  • Adapt language to resonate with local stakeholders from “algorithmic impact” in the EU to “AI ethics” in Japan to “ideological neutrality” in the U.S. 

This tailored approach not only enhances accuracy and response rates but also shows third parties that you understand the waters they’re navigating. 

Global Governance in One Platform 

As jurisdictions continue paddling out in different directions from the EU’s structured waves to China’s tightly controlled breaks to Brazil’s rights-based swells to the U.S.’s policy-driven undercurrents, navigating AI governance takes more than just a life vest. It requires a board built for all tides. 

With Aravo, organizations are equipped to build adaptive, intelligent questionnaires that adjust to regulatory variation while keeping a steady course. As AI governance evolves, so must our approach to third-party risk. 

Aravo provides the flexibility and insight needed to manage AI-related third-party risk with confidence, precision, and global reach regardless of how choppy the waters become. 


Ready to chart a confident path through the AI risk landscape? Join PwC and Aravo experts for our live webinar: “Manage AI Risk: Understand the Importance of Internal AI Governance and Assessing Third-Party Use of AI,” happening Tuesday, November 18. Register for the webinar here! 

Daniel Philemon

Daniel serves as a Senior Business Solutions Consultant at Aravo Solutions and has a passion for helping organizations see value in technology to understand risk through the context of third parties. Daniel has over 12+ years of professional experience in the Governance, Risk, and Compliance (GRC) space through various SaaS (Software as a Service) providers.

Daniel serves as a Senior Business Solutions Consultant at Aravo Solutions and has a passion for helping organizations see value in technology to understand risk through the context of third parties.

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