ISO 42001 requirements - chapter 4 Organizational context

If you wish to obtain ISO 42001:2023 certification, you will need to implement an Artificial Intelligence Management System (AIMS) .

ISO 42001 describes the structure of an AIMS, from planning and analysis to continuous improvement.

In this article, we will analyze clause 4 of the standard (management system clauses).

In this guide, we'll show you how to get started setting up an AI management system.

ISO/IEC 42001: Understanding the context for strategic AI management

ISO/IEC 42001, the first international standard for the management of artificial intelligence, is based on a simple logic: before thinking about tools, security and models, we need to think about context and strategy.
Chapter 4 of the standard is central, as it defines how an organization must analyze its environment, stakeholders and responsibilities in order to build a robust AI project.

Let's take a closer look at how to use this chapter to build your strategy.

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Understanding your context

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4.1 - Understanding the organization and its context

The first requirement is to identify the external and internal issues that may influence your ability to achieve the objectives of your AI management system.
This goes far beyond a simple diagnosis: it's a strategic analysis.

External issues to consider :

• Regulatory and legal: applicable laws (RGPD), AI uses prohibited by the IA Act, ... List those that are important to you
• Economic outlook: incentives, programs, market opportunities linked to AI uses
• Social and cultural: ethical expectations, values, traditions that influence the perception and acceptability of AI.
• Technological and competitive: rapid evolution of AI solutions, new product and service trends, your competitors...

Internal issues to be analyzed :

• Your governance, processes, objectives and internal policies.
• Your contractual obligations to partners and customers.
• The purpose of the AI systems you develop or use (e.g. task automation, decision support, customer relations).

A highlight of the standard: you also need to determine whether climate change is a relevant issue. This may concern, for example, the energy footprint of the AI models used.

Finally, you need to clarify your roles vis-à-vis AI systems: are you a developer, supplier, integrator, user?
This identification is essential, as responsibilities and obligations vary according to role.

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For your ISO 42001 certification, you can choose the role(s) you want to master.

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Some examples of roles :

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This means you can use ISO 42001 for internal management purposes only, or for your products.

4.2 - Understanding stakeholder needs and expectations

Requirements (the standard says)

The organization must :

• Identify the interested parties involved in the AI management system (customers, users, authorities, partners, employees, etc.).
• Identify the relevant requirements expressed by these parties (regulatory, contractual, ethical, technical, social).
• Determine which requirements will be taken into account and addressed as part of the AI management system.

Note: some stakeholders may also have expectations or requirements related to climate change.

What to do:

Step two: identify the stakeholders who count in your AI ecosystem, and understand their expectations.

This includes :

• Your customers and end-users (expectations in terms of security, transparency, performance).
• Your employees (training, acceptability, working conditions with AI).
• Regulatory authorities (legal and ethical compliance).
• Your partners and suppliers (contractual guarantees, interoperability).

The organization must then decide which requirements will be covered by the AI management system.
Example: a customer may demand explainable AI; an authority may impose the retention of audit logs; your teams may demand an internal charter of responsible use.

I recommend selecting requirements in a way that is consistent with your business objectives.

It's best to be reasonable in your choice from the outset. The standard also includes two appendices (C and D) which can be used to help you understand the various possible uses and the associated macro-risks.

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4.3 - Defining the scope of the AI management system

Third requirement: clearly define the scope of the management system.
In practice, this means meeting :

• Which AI systems are included?
• Which activities, services, sites and departments are concerned?
• What boundaries (geographical, technological, organizational)?

This scope must be consistent with previous analyses (issues and stakeholders).
It must also be documented, as it will serve as a reference for all subsequent stages (leadership, planning, operations, evaluation, etc.).

4.4 - Setting up the AI management system

Finally, the standard requires that the management system itself be implemented:

• Establish, document and maintain it.
• Define the necessary processes, their interactions and responsibilities.
• Organize a continuous improvement cycle.

At this stage, there's nothing to do in your approach to this clause, simply to have well-documented your strategic analysis and scope.

Why is Chapter 4 strategic?

Chapter 4 is not a mere formalism. It is a strategic checklist.
It requires managers to exercise strategic lucidity:

• Know the playing field (internal/external issues).
• Understand what your stakeholders want.
• Define your roles and responsibilities.
• Set clear limits to your IA approach
• Select scope

Without this initial work, the subsequent chapters (leadership, planning, operations) may lack coherence and lead you into a never-ending project.

Conclusion

ISO/IEC 42001 reminds us of the obvious: AI is not just a question of technology.
It is first and foremost a strategic and organizational choice.
By first analyzing its context, its stakeholders and its role, a company can transform AI from a source of risk into a genuine lever for competitiveness and trust.

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