When sensitive donor information is involved, choosing an AI solution requires more than evaluating features and functionality. Organizations also need to understand how a vendor approaches security, compliance, and risk. AI vendor security and compliance should be something you can evaluate with evidence, not simply take at face value.
HIPAA and SOC 2: What Do They Actually Tell You?
HIPAA and SOC 2 address different aspects of security and organizational controls.
HIPAA is a federal law that establishes requirements for protecting protected health information. The HIPAA Security Rule specifically addresses electronic protected health information (ePHI) and requires covered entities and business associates to implement appropriate administrative, physical, and technical safeguards. Whether HIPAA applies to a particular organization or vendor depends on its role and activities.
SOC 2, by contrast, is an independent examination of controls at a service organization. The AICPA’s Trust Services Criteria cover areas including security, availability, processing integrity, confidentiality, and privacy. A SOC 2 report gives customers information about the design and, depending on the report, operating effectiveness of a vendor’s controls.
Why Both Matter for AI Vendor Security and Compliance
These frameworks answer different questions. HIPAA helps establish whether a vendor is operating within applicable requirements for protected health information. SOC 2 provides insight into the controls and processes a service organization has put in place.
One common misconception is that having one automatically means a vendor has comprehensive security. It does not. AI vendor security and compliance should be evaluated in the context of the specific solution, the data it handles, and how the vendor’s controls apply to that environment.
Questions to Ask an AI Vendor
Before selecting an AI solution for donor eligibility review, ask:
- Is the organization subject to HIPAA requirements, and will it execute a Business Associate Agreement when applicable?
- Does the vendor have a current SOC 2 report? If so, what type and what systems or services are within its scope?
- What security controls apply specifically to the application handling donor information?
- How are access, retention, audit logging, and data disposal managed?
- How is AI use governed, including how inputs and outputs are handled?
- Can the vendor provide documentation or evidence to support its security claims?
At Data41, we believe AI vendor security and compliance should be transparent and verifiable. Data41 is SOC 2 attested and HIPAA-compliant, with security practices designed around the sensitive data and workflows our solutions support.
When evaluating an AI vendor, don’t stop at the certifications or credentials listed on a website. Look at what they actually cover, ask questions, and make sure the answers align with your organization’s requirements.
