How AI Changes Companies While Balancing Issues Using ISO - IEC 42001

In 2022, 55% of organizations worldwide used AI technologies, and that figure has risen to 78% in the last two years. This is one of the fastest technological adoptions to date. As with any advancement, though, ethical concerns, transparency, and security issues are at the forefront when companies use AI. The question, therefore, is how companies overcome these challenges while remaining competitive. This is where the world's first AI Management Standards come in - ISO/IEC 42001.

How ISO/IEC 42001 Works

ISO/IEC 42001 serves as your organization’s guiding playbook for AI. Introduced in December 2023, it’s the world’s first standard built specifically for responsible AI management. It offers a complete, ready-to-use framework for establishing, operating, and strengthening an AI Management System. Moreover, it goes beyond technology—focusing on governance, accountability, and trust as core pillars.

These days, organizations have to figure out how to use AI without being unethical or illegal. ISO/IEC 42001 helps them do just that by offering 38 ways to address issues ranging from bias to privacy. Just as ISO 27001 certification helps organizations address information security, ISO/IEC 42001 provides a systematic approach to managing the risks and opportunities associated with AI usage.

The standard applies to anyone, whether they are building AI products or providing AI services, or just using AI in their operations. This standard fits every case, from tech giants to startups seeking ISO 27001 certification to build trust.

The Building Blocks of Responsible AI

What makes ISO/IEC 42001 most effective is that it is not just a sliver of a standard that unwinds over a single area of attention. Instead, it takes a different approach, breaking down 10 sections, each a universe unto itself. These stand in for the principal AI management system in their totality:

Leadership and commitment sit at the top. That means your top brass must show they own the AI pieces of the business. This isn't just some system admin project. This is a business strategy and, as such, is a level move that the C suite needs to be involved in.

Risk assessment and impact evaluation are the most important. You have to identify potential risks before they become problems, such as algorithmic bias, security issues, or privacy concerns. Just as a cybersecurity certification recognizes your security posture, you have an ISO/IEC 42001 certification that shows you are managing the risks associated with AI.

ISO/IEC 42001 is unique in that it is designed to be integrated with the other frameworks you have, with minimal disruption. If you already have ISO 27001 or ISO 27701 in place, integrating AI will be much less effort. These standards are designed to complement one another and enable a more integrated, seamless governance system.

Real-World Impact: From Theory to Practice

The organizations that implemented ISO/IEC 42001 are not just achieving compliance for the sake of it. Companies are experiencing positive outcomes. Organizations are reporting increased trust with stakeholders, higher operational efficiency, and reduced litigation risk. The number of ISO certifications increased by 20% in 2024. Well, the AI management certification is on the verge of spiking up.

One big advantage is that when you obtain ISO/IEC 42001 certification, clients, partners, and regulators see you as responsible and serious about taking AI responsibility. This is even more significant when you consider the unfortunate rise in headlines about data breaches and AI failures. Types of cybersecurity services for companies include AI security assessments, so having certified AI management systems is indispensable.

The benefits for startups are even greater. Gaining standards certifications such as ISO 27001 for startups, alongside ISO/IEC 42001, is a significant way to distinguish yourself from the competition. It shows maturity and a readiness to scale responsibly, which investors, enterprise clients, and even regulators greatly appreciate.

Compliance Landscape

What ISO/IEC 42001 offers that many other organizations overlook is a good way to prepare you for upcoming regulations on various compliance topics. Take the EU AI Act, for example. It offers a high level of Compliance. Transparency, fairness, and accountability are key to ISO/IEC 42001, so having them puts you in a position to become compliant as you adopt this standard today and regulate your AI operations.

The compliance journey involves many different people and roles. You need robust data protection, oversight, and issue tracking in line with ISO/IEC 42001. For data protection, oversight, and issue tracking, ISO/IEC 42001 delivers on all of these.

The addition of a cybersecurity certification can create cohesion in information security. Your information security people already know documentation and procedure, and how to audit. It's an expected evolution of those skills.

But what about all the challenges in implementation? Yeah, getting to certification takes a lot of work, including documenting policies, conducting loss and risk assessments, training staff, and setting up monitoring and control processes. Reports from these organizations say that the "structured approach" really simplifies AI governance within the system, rather than an unorganized approach.

Your Next Steps Toward AI Excellence 

The world is rapidly approaching an AI-governed future, and there is no sign of it slowing down. It has been found that 92% of companies plan to invest in generative AI over the next 3 years. So the more the question is, "how should it be adopted?" and less "should it be adopted?" The ISO/IEC 42001 will be the standard that provides you with the framework to guide all your innovations while managing the risks with the confidence you need. 

The standards aim to fulfil the requirements of ethics, transparency, accountability, and security. It goes hand in hand with other certifications, such as cybersecurity and ISO 27001, to provide comprehensive governance standards. ISO/IEC 42001 will enable you to achieve the best possible outcomes by effectively governing your AI systems, whether you are an enterprise scaling them or a startup laying the foundations. 

Looking to be among the leaders in responsible AI adoption? SGS is best suited to help you obtain your ISO/IEC 42001 certification. Every day, we assist companies worldwide in implementing AI management systems that enable them to innovate while also managing Compliance, security, and trust. Go to www.sgs.com to learn more about how we can assist you. Don't just adopt AI, do it the right way with ISO/IEC 42001.