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What is ISO 42001?
ISO 42001 is the world's first international standard for AI Management Systems (AIMS), published in December 2023. It provides a framework for organizations developing, deploying, or using AI systems to manage AI-related risks, ensure responsible AI practices, and demonstrate governance maturity.
While SOC 2 and ISO 27001 focus on general information security, ISO 42001 addresses AI-specific risks: bias, transparency, explainability, data quality, model drift, and ethical AI deployment. It's designed for organizations building AI products, using AI extensively in operations, or subject to EU AI Act regulations.
Why it matters now: The EU AI Act (enforced 2025-2027) requires high-risk AI systems to demonstrate compliance with governance standards. ISO 42001 is the clearest path to demonstrating EU AI Act compliance. Companies selling AI products to EU customers, deploying AI in regulated industries (healthcare, finance), or raising capital need ISO 42001 to prove responsible AI practices.
Why ISO 42001 Now?
Be early. Own the narrative. Win enterprise AI deals.
EU AI Act Compliance
EU AI Act enforcement begins 2025. High-risk AI systems require governance frameworks. ISO 42001 is the recognized compliance path. Without it, you can't sell AI products in the EU market (€600B opportunity).
First Movers Advantage
ISO 42001 is brand new (Dec 2023). Less than 100 companies certified worldwide. Be in the first wave. Own the "responsible AI" narrative. Beat competitors to enterprise AI deals before they catch up.
Win Enterprise AI Deals
Enterprise customers buying AI products demand governance proof. ISO 42001 answers: "How do we know your AI is safe, unbiased, and compliant?" Win deals competitors can't touch. Command premium pricing for certified AI.
Risk Mitigation
AI failures are expensive: bias lawsuits, regulatory fines, reputational damage, model drift incidents. ISO 42001 forces you to build proper AI governance before incidents occur. Insurance for AI risk.
Incident Response
Everyone claims "responsible AI." ISO 42001 proves it with third-party certification. Stand out in crowded AI market. Enterprise procurement requires certification, not marketing claims. Cut through AI hype.
Investor Appeal
VCs investing in AI companies want to see governance maturity. ISO 42001 signals serious, responsible AI development. Reduces regulatory risk for investors. Higher valuations for certified AI companies (provable de-risking).
AI Management System Components
What ISO 42001 requires you to implement
The 90-Day ISO 42001 Process
From kickoff to certified AI Management System
AIMS Design & Scoping
Map your AI systems, assess risks, and design your AI Management System framework.
→ AI inventory (all AI systems, use cases)
→ AI risk assessment methodology
→ Context analysis (EU AI Act applicability)
→ AI policy framework
→ Statement of Applicability
→ AIMS documentation structure
Implementation & Controls
Implement AI governance controls across your AI lifecycle (data, development, deployment).
→ Data governance program
→ Model development procedures
→ Bias testing & mitigation controls
→ Explainability framework
→ Human oversight mechanisms
→ Monitoring & drift detection
Certification Audit
External certification body audits your AIMS. You receive ISO 42001 certificate.
→ Internal readiness assessment
→ Documentation review (Stage 1)
→ Findings remediation
→ On-site/virtual audit (Stage 2)
→ AI system testing & interviews
→ ISO 42001 certificate issued
Choose Your Level
ISO 42001 certification packages for every stage
$20K
for startups with a single AI product or limited AI footprint.<20 employees
1-2 AI systems/models
Basic AIMS framework
Essential AI policies
Risk assessment
Data governance basics
Model documentation
Stage 1 & 2 audit support
dashr.ai Platform included
Professional
$40K
For growing companies with multiple AI systems or complex deployments.20-100 employees
3-10 AI systems/models
Complete AIMS implementation
Comprehensive AI policies
Advanced risk assessment
Full data governance program
Bias testing & mitigation
Explainability framework
Human oversight controls
2 mock audits
Stage 1 & 2 audit support
dashr.ai Platform
Enterprise AI
$55K
For large organizations with complex AI environments and custom requirements.100+ employees
10+ AI systems/models
High-risk AI Act use cases
Enterprise AIMS framework
Advanced AI policies
Complex risk scenarios
Enterprise data governance
Advanced fairness testing
Custom explainability solutions
Multi-stakeholder oversight
Third party AI vendor management
dashr.ai Platform
Audit fees paid separately to certification body: $10K-$20K (depends on AI complexity)
All tiers include dashr.ai Platform Year 1 ($12K value)
Should You Get Multiple?
Many AI companies get ISO 42001 (AI governance) + ISO 27001 (general security). Some also add SOC 2 for US market. We offer bundled pricing with 10-15% savings for multiple frameworks.
Get custom quote for multiple frameworks →
Case Study
AI Startup Wins €8M EU Enterprise Deal
Industry
HR Tech SaaS
Framework
ISO 42001
Company Size
120 Employees
Timeline
88 Days
Investment
$40K
The Situation
Series A AI company with ML-powered recruiting platform. Strong product-market fit in US (200 customers, $5M ARR). Expanding to EU for TAM expansion. Lost 3 EU enterprise deals in 4 months - all due to EU AI Act compliance requirements. Procurement teams asked: "How do you ensure your AI is unbiased? What's your AI governance framework?" No good answer. US-focused SOC 2 didn't address AI-specific risks.
The Challenge
EU AI Act classifies hiring/recruitment AI as "high-risk" (directly impacts employment decisions). Customers demanded proof of: bias testing, explainability, human oversight, data quality controls. Internal team had no AI governance experience. Considered building framework from scratch - legal quoted $200K and 12+ months. CEO said: "Find a faster path or we abandon EU market."
Our Solution
Engaged us for ISO 42001 Growth tier ($50K). Kicked off January 15, certified April 16 (91 days). Built complete AIMS: AI policy, risk assessment (identified 12 bias risks), data governance (training data documentation), bias testing protocol (tested across gender, race, age), explainability framework (SHAP values for model decisions), human oversight (all AI recommendations reviewed by recruiters before final decisions). Passed certification audit with zero findings.
The Results
Within 60 days of certification: closed €8M enterprise deal with German automotive manufacturer (3-year contract, 50,000 employees). Deal included clause: "ISO 42001 certification required for contract execution." Sales team used certificate in all EU pitches - instant credibility. Pipeline value in EU grew from €2M to €18M in 90 days. Mentioned ISO 42001 in Series B pitch deck - investors loved "EU AI Act ready" positioning. Raised $25M Series B at 50% higher valuation than planned (de-risked regulatory exposure).
Ready to Write Your Success Story?
Ready to Write Your Success Story?
Questions about our process? Call us: +1-818-533-1402 or email icare@carefulsecurity.com