3 types of companies that should get ISO 42001 certified to build stakeholder trust with AI governance
Breaking down the top candidates.
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1. AI-powered B2B startups
Early-stage companies hit a point where they can no longer get through customer security reviews by answering questionnaires or providing documentation.
At this point, they often pursue a SOC 2 attestation or ISO 27001 certification.
Both choices are fine. But for those where AI is at the core of the value proposition, ISO 42001 might be a better approach. That is because, while the standard is not focused on security and privacy, it covers those topics along with:
Regulatory and contractual obligations
Societal impact
Ethics
Especially with the explosion of interest in - and scrutiny of - AI practices, ISO 42001 can help answer the mail. And since startups usually only have the resources to tackle one compliance framework, ISO 42001 covers a lot of bases.
2. Larger companies training on customer or otherwise sensitive data
Big companies integrating AI into their feature stack continue to take criticism, like:
The way these companies leveraged AI range from justifiable to seriously concerning. The problem is a lack of well-established industry guidelines for when and how companies should train on customer data.
ISO 42001 does not fill this gap directly, but it does provide a way for companies to demonstrate they have an effective AI risk management in place. Having
external auditors certify your AI management system (AIMS) and
a clear set of principles for processing and training on customer data
is the best way to head off bad press and regulatory attention.
3. Heavily-regulated enterprises
Introducing new technologies into healthcare and financial services is challenging. Not least due to the various (sometimes vague or even conflicting) regulations that apply. Innovation is a slow and iterative process requiring consensus and analysis of risks and controls.
Because of the intense scrutiny on AI in these sectors, a certifiable method for managing risk has many benefits.
Executives at
hospitals
insurers
banks
investment funds
look for the “tried and true” and the “gold standard” when it comes to anything new. That is why they hire name-brand consultants and buy software from the biggest companies around.
And their customers expect the same.
So the documentation and process management burden of implementing an AIMS becomes a feature rather than a bug. By letting them demonstrate how responsibly they are rolling out AI systems, they can pacify stakeholders while staying current with new technology.
Considering ISO 42001 certification?
StackAware is on track to be one of the first companies in the United States to be certified. And we’ve been documenting best practices along the way.
Even better?
We’re helping others prepare for and achieve certification through the AIMS accelerator.
Ready to fast-track your ISO 42001 certification?