A company uses a third party AI service to summarize internal incident reports for executives. Reports include sensitive employee and investigation details. The vendor states data may be retained temporarily to improve model performance. Legal and HR raise concerns, but leadership values insight speed.
What is the MOST appropriate action to take FIRST?
A. Encrypt all reports before submission to the AI service
B. Perform a data classification and usage review for the AI workflow
C. Require the vendor to sign stricter confidentiality clauses
D. Limit AI access to only closed incident reports