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During a governance audit at Grayling Software, it is discovered that a project manager uploaded a client’s confidential requirements document into a general-purpose AI tool to summarize a risk list. The tool is approved by the Grayling IT department for internal use.

What is the primary concern for the project manager?

  1. The accuracy of the AI-generated risk list compared to a manual brainstorming session.
  2. Updating the Risk Register to include the AI tool's potential for hallucination as a new project risk.
  3. Whether the client's contract specifically permits the transfer of confidential data to third-party AI sub-processors.
  4. Notifying the sponsor that the risk identification process has been successfully automated to save 20% in administrative costs.

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