FloQast achieves ISO 42001 certification for AI systems

FloQast has announced that it has attained ISO 42001 certification, positioning itself among a select group of global organisations to meet this standard for artificial intelligence management systems.

ISO 42001 is internationally recognised for establishing, implementing, maintaining, and continuously improving an Artificial Intelligence Management System (AIMS). The standard provides a framework for ethical and transparent AI governance, aligning with best practices globally.

The company underwent a comprehensive external audit to achieve this certification, which assessed its AI systems, governance policies, and risk management practices for compliance with ISO 42001.

"AI is evolving rapidly, and while many companies are pushing products to market, it's crucial to approach innovation with care," stated Mike Whitmire, Chief Executive Officer and co-founder of FloQast.

Whitmire said, "At FloQast, we've taken a proactive and measured approach, building AI solutions that meet SOX audit standards and align with accounting best practices. We understand the risks of applying AI to financial data, which is why we focus on compliance, security, and accountability. Our ISO 42001 certification reflects our commitment to responsible AI development, giving customers confidence to embrace AI as a transformative tool for their accounting teams."

FloQast used its FloQast Compliance Management solution to achieve ISO 42001 certification, incorporating a thorough AI Management System based on ethics, accountability, and continuous improvement. The process involved a series of structured initiatives.

Initially, a gap assessment was conducted to evaluate existing processes and controls against the ISO 42001 standards. This assessment identified areas for improvement, and resources were allocated for addressing these gaps.

Subsequently, AI Management System policies and processes were developed to guide the responsible development and use of AI. These were integrated into the broader compliance programme to enhance alignment.

The initiative was backed by the organisation's senior leadership and involved an AI Committee that included the Chief Technology Officer, Chief Product Officer, and other executives, ensuring company-wide engagement in responsible AI development.

Training sessions were conducted for the research and development teams, aimed at ensuring alignment with the AI Management System objectives. This was accompanied by rigorous internal and external audits leveraging FloQast Compliance Management for evidence collection and submission.

A continuous improvement feedback loop was established, where departmental changes that impact the AI programme are communicated, helping maintain compliance and advance standards.

By securing the ISO 42001 certification, FloQast reinforces its focus on ethical AI development practices, robust risk management, and delivering trustworthy solutions. This aligns with its compliance with other industry standards such as SOC 1, SOC 2, ISO 27001, and ISO 27701, helping safeguard customer trust.