Blog

AI is Moving Fast: Can Your Governance Keep Up?

Author

Hope Haruna

Posted: July 30, 2025 • 4 min Read

AI

AI is Moving Fast: Can Your Governance Keep Up?

The use of Artificial Intelligence is no longer a concept tied to the future. Industries from fintech and healthcare to manufacturing and retail are being transformed in how they operate. While it shapes the future of the internet, the growth of AI comes with new, catastrophic risks. For instance, records point to many biased algorithms, opaque decision-making, violations of data privacy, and crackdowns on established regulations.

In the 2025 Global Cybersecurity Outlook Report, threat actors use AI-enhanced tactics to escape traditional defences. Also, the World Health Organisation (WHO) equally warns that advances in artificial intelligence, cyberattacks, and genetic engineering may impact global biosecurity.

Given these escalating concerns, this piece will examine ISO/IEC 42001:2023, the world's first international standard dedicated to AI management systems. For organisations looking to build trustworthy, auditable, and ethically aligned AI, this isn't just another compliance checkbox. It is your competitive edge.

What is ISO/IEC 42001?

Published by ISO and IEC on 18 December 2023, the ISO/IEC 42001 is a structured framework for establishing, implementing, and improving an Artificial Intelligence Management System (AIMS). This helps organisations of all sizes manage the risks, ethics, compliance, and performance of AI systems throughout their lifecycle.

While ISO 27001 covers information security and NIST AI RMF focuses on voluntary risk management practices, neither provides a full lifecycle management system for AI operations. ISO/IEC 42001 bridges that gap by establishing mandatory, auditable requirements for organisations to design, deploy, and govern AI responsibly. Think of it as ISO 27001 for AI, but purpose-built for the unique challenges that intelligent systems introduce: autonomy, explainability, bias, and more.

Why ISO/IEC 42001 Matters Right Now

AI isn't just powerful. It's volatile. Mismanaged models can:

  • Violate global data protection laws (GDPR, CCPA)
  • Perpetuate harmful biases
  • Erode stakeholder trust
  • Trigger regulatory penalties under laws like the EU AI Act

Mismanaged AI has real-world consequences:

  • In late 2023, UK media and parliamentary inquiries revealed that an AI-based system used by the Department for Work and Pensions to flag Universal Credit fraud disproportionately targeted claimants based on nationality, age, marital status, and disability, prompting wider concerns about bias and algorithmic fairness.
  • In July 2023, a U.S. federal regulator cautioned that AI in credit decision-making can unintentionally amplify bias and result in unfair exclusion of minority applicants, a risk regulators describe as digital redlining

ISO/IEC 42001 is designed to:

  • Embed fairness, transparency, and accountability into AI systems
  • Enable risk-informed decision making
  • Ensure continuous monitoring and lifecycle governance
  • Align with existing management systems (ISO 27001, ISO 9001, ISO 27701)

By implementing ISO 42001, organisations don't just stay compliant. They become AI-resilient.

Key Benefits of Adopting ISO/IEC 42001

  • Ethical AI by Design: Built-in principles for fairness, privacy, and human oversight
  • Audit-Ready Framework: Enables internal and third-party assessments
  • Reduced Regulatory Risk: Prepares you for AI laws and frameworks like the EU AI Act and NIST AI RMF
  • Customer Trust: Signal to clients, partners, and regulators that your AI is responsibly governed.

    For example, EIS, a leading cloud-native insurance platform provider, publicly adopted ISO/IEC 42001 alongside ISO/IEC 27001. This move enhanced their AI governance credibility, resulting in smoother enterprise client onboarding and stronger regulatory alignment for their AI-enabled claims processing platform

  • Operational Clarity: Define roles, responsibilities, and KPIs for managing AI assets

A Quick Breakdown of the Standard

ISO/IEC 42001 is structured like other ISO management standards (e.g., ISO 27001), making it easy to integrate. Here are its core clauses:

  • Scope & Definitions: Clarifies what's covered and how key terms are defined.
  • Context of the Organisation: Identifies external/internal issues relevant to AI.
  • Leadership: Assigns accountability to top management for AI governance.
  • Planning: Requires risk assessment and objective-setting for AI activities.
  • Support: Focuses on resources, training, and documentation.
  • Operation:Covers AI impact assessments, controls, and vendor management.
  • Performance Evaluation: Promotes regular audits and reviews.
  • Improvement: Drives continual enhancement of the AIMS.

Annexes provide practical controls, risk scenarios, and implementation guidance.

PDCA in Action: How to Build Your AI Management System

ISO/IEC 42001 is built on the Plan-Do-Check-Act (PDCA) model:

  • Plan: UDefine scope, policies, controls, and assess risks.
  • Do: Implement AI lifecycle governance and training.
  • Check: Monitor AI behaviour, review logs, and audit decisions.
  • Act:Correct deviations and improve performance.

This cycle ensures your governance adapts with your models.

How to Get Started With ISO/IEC 42001

  • Gap Analysis: Map your existing AI practices against ISO 42001 controls.
  • Stakeholder Buy-in: Get leadership and cross-functional teams aligned.
  • Assign Ownership: Appoint an AI Governance Lead or Committee.
  • Pilot Governance: Start with one high-risk AI use case.
  • Measure & Mature: Use metrics and audits to refine your AIMS.

Future-Proof Your AI Strategy

ISO/IEC 42001 isn't just about keeping regulators happy. It's about building AI systems that are trusted, auditable, and aligned with your mission. In a world where every organisation is becoming an AI company, governance is no longer optional. It's a differentiator. Those who get it right early will lead the next wave of AI innovation, securely and sustainably.

Need Help Navigating ISO/IEC 42001?

We're helping organisations like yours align AI operations with global standards. Whether you're auditing your first AI project or scaling AI governance enterprise-wide, we can guide your journey. Let's build AI you can trust.

References: