AI
FloQast Achieves ISO 42001 Certification, Setting the Standard for Ethical AI in Accounting
At FloQast, we set the bar high. Why? Aside from being how a business should be run, it’s also because of the accounting in our DNA: FloQast was created as a tool we wished existed when we were in the trenches, doing the work.
As we continue to push the boundaries in the AI space, our AI-powered tools help accounting teams do more with less—enhancing decision-making, uncovering insights, and reducing repetitive tasks through intelligent automation. With intelligent automation, our goal is to help accountants regain valuable time to focus on what they truly enjoy, both in and outside of work.
But this drive for innovation comes with a responsibility to do things ethically and securely. That’s why we’re proud to announce that FloQast has achieved ISO 42001 certification, the globally recognized standard for ethical and responsible AI solution development. This milestone showcases our commitment to transparency, accountability, and trust in every AI solution we deliver, and positions us as a leader in responsible AI governance within the accounting technology sector.
This milestone isn’t just another checkbox for us—it’s a commitment to doing AI the right way. It’s about showing current and prospective FloQast users—and the entire accounting technology industry—what it means to innovate responsibly. And in a world where AI is often rushed to market, taking a proactive and measured approach to development has never been more important.
What is ISO 42001, and Why Does It Matter?
ISO 42001 is the gold standard for establishing, implementing, maintaining, and continually improving an Artificial Intelligence Management System (AIMS). This certification underscores the need for ethical, transparent, and secure practices in developing and deploying AI technologies. For us, it validates everything we’ve worked tirelessly to build—an AI framework that’s responsible, reliable, and above all, trustworthy.
AI sits at the heart of FloQast’s Accounting Transformation Platform. It’s what enables thousands of accounting teams worldwide to automate complex processes, reduce compliance burdens, and stay audit-ready. With ISO 42001 certification, FloQast users can be confident that our AI-powered solutions are designed and governed with their best interests in mind.
But what truly sets this achievement apart is its rarity—few organizations globally, and even fewer in the accounting technology space, have attained this certification. This reinforces FloQast’s position as a trailblazer in not just accounting technology, but also ethical AI development across industries.
The Path to ISO 42001 Certification
Earning this certification wasn’t easy—and that’s exactly the point. The process involved meticulous evaluation and alignment of our systems and policies against ISO 42001’s rigorous standards. Here’s a closer look at how we earned this recognition and strengthened our operations along the way.
1. Comprehensive Gap Assessment
One of the first steps was analyzing our existing controls through the lens of ISO 42001’s requirements. We identified areas needing improvement, prioritized them, and allocated resources to address gaps. This wasn’t just about compliance—it was about making FloQast stronger and more nimble in managing AI risks.
2. Policy and Process Alignment
We didn’t stop with gap analysis; we redefined our internal policies and processes to align with ISO 42001’s principles for ethical AI governance. These updates weren’t made in isolation. They were integrated into FloQast’s larger compliance program, enhancing visibility across the organization.
3. Stakeholder Engagement
Leadership commitment was crucial. Senior executives, including our CTO, CPO, and members from legal, compliance, and product development teams, actively contributed through our newly formed AI Committee. Their hands-on involvement ensured alignment across departments and reinforced our culture of accountability.
4. Internal Training and Awareness
Compliance can only succeed when it’s embraced by everyone. We conducted training sessions led by senior leadership to ensure that our Research and Development teams fully understood the objectives of our AI Management System. Building solutions responsibly isn’t just a directive here—it’s a shared value.
5. External Validation Through Audits
Lastly, our AI framework was put through a rigorous external audit. This independent evaluation confirmed that our systems and protocols met ISO 42001’s high standards for ethical AI management. And yes, we practiced what we preach—leveraging our own FloQast Compliance Management solution to streamline the audit process.
6. Continuous Improvement
Obtaining the certification is just the beginning. We’ve implemented an ongoing feedback loop for internal departments to communicate changes that could affect our compliance. This ensures we remain agile in adapting to new challenges while maintaining our baseline of excellence.
Why This Matters to Our Customers and the Industry
The implications of this certification go beyond the stamp of approval. At its core, ISO 42001 certification builds trust—a crucial element in any business relationship, but especially in accounting, where precision and integrity are paramount. By adhering to this standard, we give our customers confidence that FloQast is not just innovative, but also secure, transparent, and ethical.
ISO 42001 also differentiates us in a crowded market. Many tech companies take a “fire, ready, aim” approach, launching AI solutions with flashy promises but little regard for potential risks or long-term implications. At FloQast, our method is deliberate and cautious. We’ve designed AI systems that meet the strict requirements of SOX audits and align seamlessly with established accounting practices.
This measured approach not only mitigates risks, but also unlocks new possibilities for our customers. From automating the close process to enhancing real-time data analysis, our AI-powered solutions are designed to make accounting teams more efficient, accurate, and ready to tackle modern challenges—all without sacrificing security or control.
Looking Ahead
ISO 42001 certification is a milestone, but it’s not our finish line. At FloQast, we’re committed to continuous improvement—strengthening our frameworks, staying ahead of AI developments, and always acting in the best interests of our customers.
Ethical AI development isn’t a passing fad for us—it’s a responsibility we’ve embraced as part of our DNA. Moving forward, we’ll continue to push the boundaries of innovation while holding firm to the values that got us here—transparency, accountability, and above all, trust.
To our customers, partners, and industry peers, thank you for believing in what we do. Together, we’re proving that technology, when done right, has the power to transform not just accounting but the way we approach business.
