The ISO/IEC 42001 standard, published in December 2023, provides a framework for managing artificial intelligence systems throughout their lifecycle. It establishes requirements for organizations to develop, implement, and maintain AI management systems, focusing on risk assessment, responsibility, and continuous oversight rather than specific technical performance metrics.
Financial institutions and payment firms are increasingly considering the standard for procurement and vendor due diligence. The framework helps companies identify AI components within their operations, such as fraud detection, transaction monitoring, and authentication workflows, while clarifying ownership and governance responsibilities after deployment.
Recent industry applications include Financial Software and Systems (FSS), which announced its ISO/IEC 42001 certification in January. Additionally, Axis Bank received certification in February following an audit of its AI governance, risk management, and project execution practices conducted by BSI.
Experts note that certification does not guarantee the performance of individual AI models. Instead, it confirms that an organization has established documented management processes within an audited scope. This distinction is critical for firms evaluating third-party AI suppliers and managing dependencies in payment routing and decisioning.
