Subprocessor

Subprocessor

Subprocessor

A subprocessor is any third party the primary vendor uses to process customer data, including cloud hosting providers, analytics services, support tools, and underlying AI model providers.

Data processing agreements typically require disclosure of subprocessors, advance notice of changes, and flow-down of security and confidentiality obligations.

Alternative Names:

Sub-Processor, Fourth Party

Why it Matters?

Subprocessors are where confidentiality commitments quietly break down. A vendor may promise not to train models on customer data while its underlying model provider operates under different terms, or may host in one region while a support tool operates elsewhere. Requesting the current subprocessor list and confirming that no-training and residency commitments flow down is among the highest-value diligence steps available.

Frequently Confused with

Related terms

Frequently asked questions

Why do subprocessors matter for AI vendors?

Why do subprocessors matter for AI vendors?

Because the underlying model provider is usually a subprocessor. A vendor's no-training commitment is only meaningful if it flows down to that provider.

Should a customer have a right to object to new subprocessors?

Should a customer have a right to object to new subprocessors?

It is worth negotiating. Advance notice with a right to object, or at minimum a termination right, is standard in well-drafted agreements.