S2E9: The Bargain AI That Could Break Your Business

This week's episode, "The Bargain AI That Could Break Your Business," explores the emerging practice of AI model distillation, where large AI models are compressed into smaller, more efficient versions. While this offers benefits like reduced costs and wider accessibility, John A. Wheeler - founder and CEO of Wheelhouse Advisors and leading global expert on risk management technology, cautions about potential hidden risks. These dangers include amplified biases, data gaps leading to performance decay, less transparent decision-making, and complications regarding intellectual property and regulatory compliance, as exemplified by the case of DeepSeek. To mitigate these risks, Wheeler advocates for an Integrated Risk Management (IRM) framework encompassing enterprise, operational, technology, and governance risk management. This discussion centers on the notion that while distilled AI is appealing, a balanced approach considering potential pitfalls and robust risk management is crucial for its successful and ethical adoption. Visit www.therisktechjournal.com and www.rtj-bridge.com to learn more about the topics discussed in today's episode. Subscribe at Apple Podcasts, Spotify, or Amazon Music. Contact us directly at [email protected] or visit us at LinkedIn or X.com. Our YouTube channel also delivers fast, executive-ready insights on Integrated Risk Management. Explore short explainers, IRM Navigator research highlights, RiskTech Journal analysis, and conversations from The Risk Wheelhouse Podcast. We cover the issues that matter most to modern risk leaders. Every video is designed to sharpen decision making and strengthen resilience in a digital-first world. Subscribe at youtube.com/@WheelhouseAdv.