How AI-based startups use ISO 27001 to increase their value
This article will give you valuable insights into the impact of AI on information security and why startups developing a technology are seeking ISO 27001 certification. Innovative startups process a lot of data of all kinds. This creates a fear in society as politicians and civil rights activists fear the worst. By committing to ethical standards and improving information security, startups can gain the trust of users.
How does information security help startups?
Consumers and governments no longer trust startups to train their AI with data that they are allowed to use for that purpose. This is why lawmakers are pushing for laws to deal with the threats posed by AI and machine learning technology. As the sector has developed generative A, the pressure to be compliant is increasing.
Therefore, information security for AI must be a fundamental part of their governance processes. Scientists and data analytics professionals must change their work patterns. They must be more respectful of data and protect it from misuse. Therefore, introducing information security management systems (ISMS) into a startup culture not only reduces risk but also improves their footprint in society. This helps investors and fund managers to invest in these forward-thinking startups as their capital sources are happy with the behavior of the startups. Developing AI-based technology is expensive and time-consuming. This is the reason why so many AI startups fail to generate cash flow and sufficient growth funding.
Does ISO 27001 have an impact on the evaluation of AI startups?
An AI-focused startup that is ISO 27001 certified has a better track record and a higher net worth. Let’s take a quick look at the main reasons for this higher valuation:
Startups that have been ISO 27001 certified have a more organized business and operational structure. Their level of professionalism is higher. Implementing an information security management system (ISMS) may initially be seen as an unwanted additional burden. Since investors in the venture capital world view a well-designed operation as a sign of maturity, they know that the risk of economic implosion is far lower. The cost of financing is therefore lower and the attractiveness of the company is higher. It is easier to attract investors because the startup’s governance track record shows longevity. This longevity is an indicator of quality processes and high value.
Is there a special certification for AI startups? ISO 27001 vs. ISO 27091
Currently, a standard called ISO 27091 is being developed that focuses on artificial intelligence cybersecurity and data protection. The core idea is to improve privacy protection by introducing an add-on to the core ISO 27001-based ISMS.
Before you start cheering, let’s look at how this would eventually be part of an audit and certification process. Currently, you can get your company’s management system audited against ISO 27001. If you also want to cover ISO 27018 (certification of cloud providers), an audit will first look at the ISMS from the perspective of ISO/IEC 27001. If you meet all the requirements, you can also continue to look at the ISO 27018 compliance requirements. When you receive your certificate, it will be an ISO 27001 certificate with an extension of the same document showing that you are also compliant with ISO 27018.
You will see with ISO 27091 that it is also necessary to be 100% compliant with ISO 27001 to get the upgrade to ISO 27091. This may sound simple if you intend to use AI to write the governing documentation, but remember that human auditors will be checking the way of actively implementing ISO/IEC 27091 in your company. It is not just about having some text. Certification bodies will be more strict, as legislative bodies in many countries require audits to be carried out by specially trained auditors.
How should an AI-powered startup build its ISMS?
The information security management systems (ISMS) for organizations developing AI-based technologies must not only manage the development and operation of the technology, but also the rapidly changing legal framework around it.