ISO 42001:2023 Annex A. Control 5.2

Explaining ISO 42001 (Annex A. Annex B.) Control 5.2: AI system impact assessment process

ISO 42001 Control 5.2 emphasizes the importance of establishing a structured process to assess the potential impacts of AI systems on individuals, groups, and societies throughout their life cycle. This process ensures that your organization evaluates risks and consequences, aligning AI usage with ethical standards, human rights, and regulatory requirements.

Annex A.5

Annex B.5

Annex A.5.1 Objective

Annex B.5.1 Objective

Control A.5.2 AI system impact assessment process

Objective of Control 5.2

The primary objective of Control 5.2 is to ensure organizations systematically evaluate, document, and address the potential impacts of AI systems. AI technologies operate with varying levels of autonomy and complexity, and their decisions can influence individuals and groups in significant ways.

Your organization should conduct AI system impact assessments to:

Identify legal, ethical, social, and security risks associated with AI usage.
Ensure AI-driven decisions do not negatively affect individual rights, safety, or well-being.
Assess how AI systems interact with sensitive data and high-risk applications.
Develop risk mitigation strategies to prevent unintended consequences.
Document the assessment process to demonstrate compliance with ISO 42001 and regulatory requirements.

The control applies to AI systems at all stages of development and deployment, from design and testing to real-world operation and monitoring.

Purpose of AI System Impact Assessment

The purpose of implementing an AI system impact assessment process is to:

Evaluate Risks: Determine the possible consequences of deploying AI systems on stakeholders.
Mitigate Negative Impacts: Develop strategies to minimize potential harm.
Ensure Compliance: Meet regulatory and legal standards relevant to AI system deployment.
Promote Ethical Practices: Align AI system development with universally accepted ethical principles.

Scope of AI System Impact Assessment

Your organization must assess whether an AI system affects:

Legal Position and Life Opportunities

AI-driven decisions may influence employment opportunities, education, access to healthcare, and financial creditworthiness.
Ensure AI algorithms do not unfairly limit job hiring, loan approvals, or university admissions based on biased datasets.

Physical and Psychological Well-being

AI in healthcare, autonomous vehicles, and workplace automation must not compromise human safety.
Consider the mental health effects of AI-driven social media algorithms, surveillance systems, or automated decision-making processes.

Universal Human Rights

AI systems must respect privacy, freedom of expression, and non-discrimination.
Ensure AI does not contribute to biased policing, mass surveillance, or digital exclusion.

Social Structures and Communities

AI may impact public trust, cultural norms, and democratic processes.
Consider how misuse of AI (e.g., deepfakes, misinformation algorithms) can affect societal stability.

Key Procedures for AI Impact Assessment

To comply with Control 5.2, your organization must establish clear procedures for assessing AI system impacts. These should include:

1. Circumstances Requiring an AI Impact Assessment

Significant changes to AI models, datasets, or decision-making processes.
Deployment of AI in critical sectors (e.g., healthcare, finance, law enforcement).
Integration of AI into high-risk environments, such as national security, medical diagnostics, or automated hiring processes.

2. Elements of the AI System Impact Assessment Process

a) Identification

Determine potential sources of risks and assess who may be affected.
Identify whether the AI system operates in a high-risk environment.

b) Analysis

Evaluate the consequences and likelihood of identified risks.
Determine data sensitivity levels and potential privacy risks.

c) Evaluation

Prioritize risks based on their impact on individuals and society.
Establish risk acceptance thresholds and determine which risks require mitigation.

d) Risk Treatment & Mitigation

Implement measures to reduce risks, such as bias detection algorithms or enhanced human oversight.
Develop policies to ensure AI systems operate within acceptable ethical boundaries.

e) Documentation, Reporting, and Communication

Maintain detailed records of AI impact assessments.
Ensure findings are communicated to stakeholders and used to refine AI models.

Roles and Responsibilities

Your organization should designate clear responsibilities for AI impact assessments:

AI Governance Teams: Define policies, conduct risk assessments, and document compliance.
Developers and Data Scientists: Ensure AI models operate within ethical and legal frameworks.
Compliance Officers: Oversee regulatory adherence and maintain audit records.
Stakeholders and External Auditors: Provide oversight and accountability.

Integration with the AI Life Cycle

AI impact assessments must be continuously integrated into the AI development process:

During Design: Identify risks before AI systems are built.
Before Deployment: Assess potential societal and ethical risks.
During Operation: Continuously monitor and update impact assessments.
Post-Deployment: Address unintended consequences and improve AI models.

Relevant Controls

Control 5.2 aligns with the following ISO 42001 controls:

Control 3.3: Documentation of AI impact assessments.
Control 6.1 to 6.2.8
Control 7.4: Quality of data for AI systems
Control 7.5: Communication and reporting of risks.
Control 9.2 to 9.4

Supporting Templates for Compliance

Your organization can use the following templates to facilitate AI impact assessments:

AI System Impact Assessment Template – Structured documentation for compliance.
AI Risk Analysis Worksheet – Helps assess risk likelihood and severity.
AI Mitigation Plan Template – Outlines remediation strategies for identified risks.