S2E9: The Bargain AI That Could Break Your Business
Cutting Costs or Cutting Corners?
Cheaper alternatives can be tempting—until they fail you. Now, businesses are facing the same risk with distilled AI, a slimmed-down version of powerful AI models. In this episode of The Risk Wheelhouse, Ori Wellington and Sam Jones break down why faster, cheaper AI could come at a steep price—from amplified biases and legal risks to opaque decision-making and outdated models.
The Hidden Risks of AI Shortcuts
Companies worldwide are rushing to adopt these lightweight AI models, lured by their affordability and efficiency. But at what cost? John A. Wheeler’s expert analysis warns that businesses might be stepping into a minefield of hidden dangers, including:
🚨 Amplified Biases – Instead of eliminating bias, condensed AI models could make it worse, reinforcing unfair patterns in hiring, lending, and decision-making.
⚠️ Legal Landmines – Who owns the intelligence inside these AIs? DeepSeek, a rising Chinese AI powerhouse, is shaking up the industry—potentially using data from major players like OpenAI and Microsoft without permission.
🔍 Opaque Decision-Making – If an AI makes a bad call, how do you trace its reasoning? Distilled AI’s lack of transparency could lead to regulatory nightmares.
📉 Model Rot & Performance Decline – What happens when AI cuts corners? Reduced training data and poor updates could leave businesses running on outdated, unreliable intelligence.
Companies like DeepSeek are using distilled AI to challenge industry giants, raising ethical and legal concerns. As AI innovation outpaces regulation, businesses risk falling into hidden traps.
The Smarter Path Forward
Instead of chasing the lowest price, Integrated Risk Management (IRM) helps businesses manage AI risks with:
✅ Enterprise Risk Management (ERM) – Aligning AI with long-term goals
🔧 Operational Risk Management (ORM) – Preventing costly failures
🛡 Technology Risk Management (TRM) – Safeguarding against security threats
📜 Governance, Risk, and Compliance (GRC) – Staying ahead of regulations
Listen Now
Is distilled AI a game-changer or a ticking time bomb? Tune in now on Apple Podcasts, Spotify, Amazon Music or simply click below. 💬 Join the conversation on LinkedIn & X (Twitter) @WheelhouseAdv!
