ISO42001 Made Simple

How do we control AI? We need an ISO standard to help.

ISO42001 is here to help put controls in place that will protect your business from the very tools that you’re building or adopting.

Artificial Intelligence is a fantastic tool, but allowing it go into our systems without any controls is just asking for trouble.

If you’ve got questions about this new standard, then I hope we’ve answered them below. But if not, then just get in touch and we’ll do what we can to address them.

What is ISO42001?

ISO 42001 is the international standard for managing Artificial Intelligence (AI) responsibly within a business.

In simple terms, it helps organisations put clear rules, processes, and oversight around how AI systems are used, so that AI becomes an asset, not a hidden risk.

As more businesses start using tools like:

GPT’s (like ChatGPT, Perplexity, Gemini etc)
AI Agents’
Microsoft Copilot
AI-powered CRMs
automated decision-making tools
AI content generators
AI analytics platforms

And also developing their own AI applications and systems (sometimes using AI to do it!), there’s growing pressure to ensure those tools are being used safely, ethically, securely and responsibly.

That’s where ISO 42001 comes in.

It provides a framework for:

managing AI-related risks
protecting sensitive information
improving accountability
reducing legal and reputational exposure
creating governance around AI usage
building trust with clients and stakeholders

For most SMEs, ISO 42001 is not about becoming an “AI company.”

It’s about making sure AI is used sensibly within the business without creating security, compliance, or reputational problems later.

The businesses that approach AI without governance often expose themselves to risks they don’t even realise exist.

And before you know it, you’re going to be asked by your clients to evidence that you have implemented AI in a reasonable and secure way.

ISO 42001 helps bring structure, clarity, and control to a rapidly changing area that many organisations are still trying to understand.

What's the difference between ISO42001 and ISO27001?

SO 27001 and ISO 42001 are closely related, but they focus on different types of risk.

ISO 27001 focuses on:

protecting information and managing cybersecurity risks.

ISO 42001 focuses on:

governing and managing Artificial Intelligence systems responsibly.

In simple terms:

ISO 27001 protects your information
ISO 42001 governs how AI is used within the business

As businesses adopt tools like ChatGPT, Copilot, and AI-powered automation platforms, new risks start appearing that traditional security controls don’t fully address.

For example:

employees sharing sensitive information with AI tools
AI-generated outputs being inaccurate or biased
lack of oversight around AI decision-making
uncertainty around accountability
legal and ethical concerns
uncontrolled use of AI across departments

ISO 42001 helps businesses create structure around those risks.

Many organisations will eventually use both standards together:

ISO 27001 for information security
ISO 42001 for AI governance

The good news for businesses already working towards ISO 27001 is that many of the governance principles overlap:

risk management
documented processes
accountability
continual improvement
leadership involvement

ISO 42001 effectively builds on those foundations as AI becomes more embedded in day-to-day business operations.

For more information on this topic you can read one of our blogs which provides more detailed information. Click here to read the blog.

Does ISO42001 apply to ChatGPT or Claude?

Yes, ISO 42001 absolutely applies to tools like:

ChatGPT
Microsoft Copilot
Google Gemini
Claude
Perplexity
AI-powered automation tools
AI writing assistants
AI customer service systems

One of the biggest misconceptions businesses have is:“We’re not an AI company, so this doesn’t apply to us.”

But if employees are already using AI tools to:

write emails
summarise meetings
generate reports
analyse data
create marketing content
support decision-making

…then AI governance already matters.

The challenge is that many businesses have no visibility or control over how AI is being used internally. This is known as ‘Shadow AI’, meaning that it’s being used, but no one is controlling HOW it is used.

That creates risks such as:

confidential information being shared unintentionally
inaccurate AI-generated content
compliance issues
poor decision-making
unclear accountability
reputational exposure

ISO 42001 helps businesses create practical governance around AI usage without stopping innovation or productivity.

For SMEs especially, the goal is not to ban AI.
It’s to:

use it responsibly
reduce unnecessary risk
create clear guidance
ensure people understand the boundaries

As AI adoption accelerates, businesses that can demonstrate responsible AI usage are likely to build stronger trust with clients, partners, and regulators.

How long does ISO42001 take?

For most SMEs, ISO42001 typically takes anywhere from 6 to 12 months depending on:

the size of the business
how much is already in place
internal availability
client requirements
the complexity of your systems and processes
the use of AI (e.g processor, controller or devloper?)

Businesses that already have:

documented processes
good operational structure
ISO27001 Information Security Management System
clear leadership
basic security controls

…sometimes it can be faster, but the biggest delays normally come from a vareity of places, including;

complexity in the use of AI
lack of knowledge
lack of time (probably the BIGGEST reason)
unclear ownership
trying to figure everything out internally
overcomplicating the process

That’s why many SME owners feel stuck before they even begin, but the good news is ISO42001 doesn’t need to take over the business (unlike the AI that has!)

With the right structure and guidance, most businesses can make steady progress without overwhelming the team or stopping day-to-day operations.

A practical approach usually works best:

Identify the AI in use
Risk assess the AI
Identify the gaps
identify your critical assets
prioritise the important areas
build manageable processes
improve things step-by-step

The businesses that succeed in the space of AI are the ones who have a clear understanding of WHY they are implementing the AI and therefore know how it should be controlled.

Do SMEs really need ISO42001?

No… In fact I would suggest that you need to be very clear about why you want ISO42001 before going down that path.

However, many businesses are increasingly finding they need to demonstrate they are in control of AI (because clients demand this insight). This is growing in need over recent years due to the amount of ‘AI enabled’ systems and products.

Of course needing to stay competitive may require you to implement AI, and then the need to demonmstrate compliance will increase.