Governing AI at Scale with ISO 42001

Discussion with Hiral Shah

With more than two decades of experience across programming, cybersecurity, and compliance, Hiral Shah has witnessed the digital landscape evolve—and has helped shape it along the way. From his early days coding in legacy systems to now leading AI risk governance as Chief Information Security Officer (CISO) at a global manufacturing firm, Mr. Shah has stayed ahead of the curve. In this conversation, he shares how ISO/IEC 42001—the world’s first international standard for managing AI systems—is changing the way organizations approach trust, risk, and responsible AI adoption. Still in its early phase, ISO 42001 is fast becoming the global benchmark for AI governance. Shah explains why this matters for CISOs and forward-thinking leaders alike—and how they can take action before compliance becomes a mandate.

The CISO’s New AI Playbook

AI governance is now a board-level issue. As artificial intelligence reshapes how companies make decisions and deliver value, the role of the CISO is expanding. No longer just a cybersecurity lead, CISOs must now guide the responsible deployment of AI itself.

ISO 42001 provides a governance framework that aligns security with ethics, transparency, and model integrity. This means performing not only risk assessments but also impact assessments—evaluating how AI systems could lead to harm or unintended consequences. “In the IMS model, impact assessment plays the most important role”, says Mr. Shah. “It’s not just about identifying risks, it’s about understanding how those risks affect people and outcomes”.

Mr. Shah explains that the shift to AI governance requires more than technical oversight. “CISOs are no longer just protecting systems”, he adds. “We’re protecting decisions, outcomes, and the integrity of the models themselves”.

Traditional standards like ISO 27001 and SOC 2 remain helpful, but they weren’t built to handle algorithmic bias, model drift, or real-time learning. ISO 42001 brings these issues into focus and promotes continuous oversight through audits and model updates.

Building AI Readiness

ISO 42001 isn’t about reinventing governance—it’s about refining it for the complexities of AI. Mr. Shah recommends organizations begin with a gap assessment to evaluate how their current frameworks compare.

From there, they can update policies, train employees, and expand monitoring systems to match the demands of AI. But training and awareness are often overlooked. “Training and awareness are often missing”, Mr. Shah notes. “Many organizations misunderstand what AI governance actually requires”.

Mr. Shah also emphasizes the broader ecosystem. Most models depend on third-party cloud infrastructure, dynamic data sources, and pre-trained components. “You can’t govern AI without governing its ecosystem”, he explains. “Everything, from infrastructure to data, has to be secure and verifiable”.

This is where ISO 42001 adds value, by integrating vendor evaluation, data pipeline security, and supply chain transparency into a single standard. “A lot of organizations have data, but the quality and classification of that data is often a question mark”, Mr. Shah adds.

Can You Trust the Model?

Trust in AI is earned, not assumed. ISO 42001 provides a clear process to help organizations operationalize ethical principles and ensure systems perform as intended.

Mr. Shah highlights three pillars: frequent audits to catch model drift, stakeholder feedback to surface misalignments, and full visibility into AI decision-making processes. “We need to perform assessments from the perspective of stakeholders”, he explains .“Are the results aligned? Is the AI actually ethical in its decisions?”

Audits, especially following major updates or shifts in training data, provide a structured way to detect errors early. Stakeholder input ensures the AI meets business needs and ethical expectations. Combined, these practices make trust measurable. “Trust comes from visibility”, Mr. Shah notes. “We need to know what the model is doing and why and be ready to course correct when needed”.

One Standard, Many Realities

AI governance isn’t one-size-fits-all. Mr. Shah’s work across fintech and manufacturing illustrates how sector context shapes how ISO 42001 is applied. “In fintech, it’s all about privacy and security, starting from KYC to managing customer data”, he explains. “In manufacturing, the focus shifts to operational safety and system reliability”.

In fintech, where sensitive customer data and compliance drive operations, data privacy is paramount. AI systems must align with strict regulations and cybersecurity protocols. In contrast, manufacturing environments prioritize uptime, operational safety, and predictive maintenance. “Whether it’s fintech or manufacturing”, Mr. Shah says, “the foundation is still risk management, but how you apply it needs to match the context”.

The Next Compliance Frontier

No other standard today offers ISO 42001’s breadth across security, ethics, and lifecycle management. Mr. Shah believes early adoption is a strategic move, not just a defensive one. “Don’t wait for regulators”, he advises. “The earlier you adopt this, the more control you have over how AI is integrated into your organization”.

Proactive alignment with ISO 42001 unlocks multiple benefits: more trustworthy systems, faster deployments, and smoother regulatory adaptation. For forward-looking companies, it’s a way to lead, not follow, on AI.

Key Takeaways for Executive Leaders

• ISO 42001 sets the first global standard for AI risk management, offering clear guidance on fairness, transparency, and accountability.
• CISOs must shift from system defenders to AI stewards, shaping how organizations build and trust AI models.
• Building trust requires more than compliance—it demands audits, stakeholder feedback, and decision traceability.
• Industry-specific governance matters: tailor ISO 42001 to align with your sector’s priorities, whether privacy or operational safety.
• Early adoption brings strategic advantage, enabling organizations to lead in AI before mandates set in.