ISO 27001 Vs ISO 42001: Which Standard Does Your Start-Up Actually Need in 2026?

You've built something brilliant. Your start-up is gaining traction, customers are signing up, and now someone's asking the dreaded question: "Are you ISO certified?"

Cue the mild panic.

If you've been researching ISO standards lately, you've probably noticed two acronyms popping up everywhere: ISO 27001 and ISO 42001. Both sound important. Both involve information and security. But which one does your start-up actually need in 2026?

Don't worry, you're not alone in feeling confused. The good news? By the end of this post, you'll know exactly which standard fits your business, why it matters, and how to move forward with confidence.

Let's break it down in plain English.

The 30-Second Version

Here's the quick answer before we dive deeper:

• ISO 27001 is for any start-up handling customer data or running digital systems. It's about protecting information.

• ISO 42001 is specifically for start-ups building, using, or managing AI systems. It's about responsible AI.

Think of ISO 27001 as your foundation. ISO 42001 is the specialist layer you add if artificial intelligence is central to what you do.

Now, let's explore what this actually means for your business.

What Is ISO 27001 and Why Should You Care?

ISO 27001 is the international standard for Information Security Management Systems (ISMS). In simpler terms, it's a framework that helps you protect sensitive data, yours and your customers'.

This standard covers things like:

• Access control – Who can see what information?

• Encryption – How is data protected when stored or sent?

• Network security – Are your systems defended against attacks?

• Incident response – What happens if something goes wrong?

ISO 27001 includes 93 controls organised into four categories: organisational, people, physical, and technological. It's comprehensive, but it's designed to be adaptable to businesses of all sizes.

Who Needs ISO 27001?

Honestly? Almost every start-up operating in 2026.

If you:

• Store customer data (names, emails, payment details)

• Use cloud-based tools or software

• Work with enterprise clients who require security assurances

• Handle any sensitive business information

Then ISO 27001 is your baseline. It's the standard that tells customers, investors, and partners: "We take security seriously."

Many larger organisations now require ISO 27001 certification before they'll even consider working with smaller suppliers. Getting certified early can open doors that would otherwise stay firmly shut.

What Is ISO 42001 and Is It Relevant to You?

ISO 42001 is the newer kid on the block, the world's first international standard for Artificial Intelligence Management Systems (AIMS). It was published to address the unique risks that come with AI technology.

This standard focuses on:

• AI governance – How do you oversee AI systems responsibly?

• Algorithmic bias – Are your AI decisions fair and unbiased?

• Transparency – Can you explain how your AI makes decisions?

• Ethical deployment – Are you using AI in a way that's responsible?

ISO 42001 contains 38-39 controls specifically designed for AI challenges. It's more focused than ISO 27001 but addresses a completely different set of risks.

Who Needs ISO 42001?

You need ISO 42001 if your start-up:

• Develops AI-powered products or services

• Uses machine learning models in your operations

• Relies on AI for decision-making (hiring, credit scoring, recommendations)

• Integrates AI tools that affect customers or employees

If AI is at the heart of what you do, or what you sell, ISO 42001 demonstrates that you're handling it responsibly. As AI regulation tightens across the UK and EU, this certification is becoming increasingly valuable.

ISO 27001 vs ISO 42001: Key Differences at a Glance

Let's make this crystal clear with a quick comparison:

The key takeaway? These standards tackle different problems. ISO 27001 protects your data. ISO 42001 ensures your AI behaves ethically.

How to Decide Which Standard Your Start-Up Needs

Still not sure which path to take? Ask yourself these questions:

Question 1: Do you handle customer or business data?

If yes, ISO 27001 should be your priority. This is your security foundation, and it applies whether you're a fintech, a SaaS platform, or an e-commerce business.

Question 2: Are you building, integrating, or heavily relying on AI?

If yes, ISO 42001 deserves your attention. This is especially true if AI powers core features of your product or influences decisions that affect real people.

Question 3: What are your customers and investors asking for?

Listen to the market. If enterprise clients are requesting security certifications, ISO 27001 is non-negotiable. If you're pitching to AI-focused investors or working in regulated sectors, ISO 42001 adds serious credibility.

Question 4: What are your resources?

Be realistic. Certification takes time, money, and effort. If resources are tight, prioritise the standard that delivers the most immediate value for your business model.

Can You Have Both? Absolutely

Here's some encouraging news: ISO 27001 is not a prerequisite for ISO 42001. You can pursue either one independently.

However, if you're planning to implement both, there are real benefits to starting with ISO 27001. Many of the processes overlap:

• Risk assessment methodologies

• Internal audit procedures

• Incident response frameworks

• Documentation requirements

• Continuous improvement cycles

By establishing ISO 27001 first, you build a solid foundation that makes ISO 42001 implementation faster and smoother. You're not starting from scratch: you're building on existing work.

For start-ups that handle sensitive data AND develop AI systems, an integrated approach is often the smartest strategy. You streamline your compliance efforts while ensuring both robust data protection and ethical AI governance.

Practical Steps for 2026

Ready to take action? Here's how to move forward:

If You Need ISO 27001:

1. Conduct a gap analysis – Where does your current security stand?

2. Define your scope – What systems and data need protection?

3. Build your ISMS – Create policies, procedures, and controls

4. Train your team – Everyone plays a role in security

5. Get certified – Work with an accredited certification body

Not sure where to start? A document readiness review for ISO 27001 can identify gaps before your formal audit.

If You Need ISO 42001:

1. Map your AI systems – What AI do you use or develop?

2. Assess AI-specific risks – Bias, transparency, fairness

3. Establish AI governance – Who's responsible for AI decisions?

4. Document everything – How AI is trained, tested, and monitored

5. Seek certification – Demonstrate your commitment to ethical AI

An ISO 42001 document readiness review can help you understand exactly what's needed.

The Bottom Line

Choosing between ISO 27001 and ISO 42001 doesn't have to be complicated.

Most start-ups need ISO 27001. It's the universal standard for protecting information, and it's increasingly expected by customers, partners, and investors.

Some start-ups also need ISO 42001. If AI is central to your business, this standard shows you're handling it responsibly: something that matters more every year as AI regulation evolves.

And if you need both? That's a sign your start-up is doing something exciting. Embrace it.

The most important thing is to start somewhere. Don't wait until a client demands certification or a data breach forces your hand. Take control now, and position your start-up as a business that does things properly.

Need help figuring out which standard is right for you?Get in touch with us at Expertise: we're here to guide you through the process without the jargon or the headaches.

Which standard is your start-up prioritising in 2026? Let us know in the comments below!