ISO 42001 explained: what the new AI management standard means for your business

Artificial intelligence (AI) tools have become mainstream for both business and personal use over the past three years. They’ve brought plenty of advantages to organisations of all sizes, but also some worrying problems.

Such powerful tools must be implemented correctly to be worthwhile. And since we’re still in the early stages of what this technology is capable of, there aren’t yet many certifiable AI-specific management system standards. Except ISO 42001.

The new AI management standard provides a framework to manage your AI processes, strengthen your security and privacy, and cut costs, all while maintaining a positive brand image. On this page, we explain what ISO 42001 is and what it means for your business.

What is ISO 42001:2023?

ISO 42001 is the first international management system standard designed for artificial intelligence. Published in December 2023, it defines requirements for establishing, implementing, maintaining and continually improving an AI management system (AIMS).

As with any other ISO standard, it isn’t about specifics. It doesn’t guide you through coding your own AI model. Instead, it’s about governance. ISO 42001 helps you define how you design, procure, deploy, monitor and review your AI systems across their lifecycle. It can apply to any organisation utilising AI, whether you use it in daily operations or develop it.

ISO 42001 shares many characteristics with other ISO standards. For example, it’s important to start with top-level leadership to set the standard. There’s a strong focus on risk assessment and ongoing performance reviews. But the subject matter itself is still a relatively new and largely untapped field. That means many organisations are using AI well outside of its intended scope, and in unprofitable,  illogical or unethical contexts. And that’s why ISO 42001 is so important.

How artificial intelligence has changed business operations over the past few years

Only a few years ago, many businesses saw AI as a niche technology. Since early 2023, though, the advent of generative AI has been made available to just about everyone, and, in some cases, for free.

Now, people use AI to draft reports, screen CVs, predict demand, answer customer enquiries, write content or programming code, analyse data, support decisions and predict financial trends, among many other things. Even if your business doesn’t formally use AI, it’s likely your employees do, on some level.

As we mentioned above, this can be great. But, in reality, it could lead to all manner of problems. Many organisations treat AI as a set of individual (different) tools, depending on who’s using it, instead of a network-wide system. ISO 42001 is designed to fill that gap by treating AI as an organisational capability that requires oversight and direction at the leadership level.

What are the risks of using AI in business?

Most people don’t think about the risks of using AI.

However, even businesses with custom AI models will run into problems without regular checks.

For example, if your model is trained on old data or prone to drift, it can provide less accurate outputs. If the settings aren’t secure or private, who else can access that information? How do you protect that data, and the reports and results that you generate?

Over time, these problems can compound. It becomes harder to trace why your AI made certain decisions, and bias can enter the process. This makes accountability and workflows start to blur.

That’s partly why we’re seeing AI regulation appear more in the news, and with good reason. Here in the UK, and in the EU, organisations are expected to understand how their automated systems affect stakeholders and decision-making.

ISO 42001 helps with all this by addressing management discipline. It helps your business define roles, assess AI risks, document decisions and monitor overall performance. Of course, no standard entirely removes risk, but ISO 42001 does make the risks much more visible and, therefore, easier to manage.

How does ISO 42001 increase productivity and reduce risks?

ISO 42001 helps improve your governance and clarity around your organisation’s AI use, which usually also increases productivity and reduces operating risks. It does this by providing a recognised framework for developing and continually improving an AI management system. A well-defined AIMS can help reduce the following issues:

• Isolated AI experiments in teams
• Out-of-scope AI deployments
• Privacy concerns and breaches
• Surprise when AIs change

With an efficient AIMS, teams spend less time fixing issues caused by unauthorised AI use. Projects also move faster once clear approval routes and workflows are defined. And your AI tools deliver recognised value within an agreed scope, rather than creating a significant number of downstream issues.

On the risk reduction side, you can use an ISO 42001 AI management system to identify issues as early as possible or draft documentation that supports internal and external audits. Most importantly, you retain control of your company’s AI use as you grow.

Implementing ISO 42001 alongside ISO 27001

Many organisations already operate an information security management system under ISO 27001. Perhaps you’re one of those or are also considering an ISO 27001 certification.

Both ISO 42001 and ISO 27001 standards share the same structure. This benefits your organisation because it allows you to plan and introduce certain requirements for two ISO certifications at the same time.

Whether you’re considering implementing ISO 42001 alone or alongside other ISO standards, getting experienced support can help. Designing an AI management system from scratch often wastes time and can lead to gaps. You need someone who understands how ISO standards work in practice, not just on paper.

That’s where ISO QSL comes in. We help businesses like yours across the UK and beyond build AI management systems that meet ISO certification requirements. Get in touch with our team to learn how we can help you create an efficient, ISO 42001-aligned AIMS.