Cognizant First to Achieve ISO/IEC 42001:2023 Accredited Certification for Artificial Intelligence Management Systems

Rhea-AI Summary

Cognizant (NASDAQ: CTSH) has become the first global IT service company to receive accredited ISO/IEC 42001:2023 certification for its artificial intelligence management system. This certification establishes a framework for managing AI risks and opportunities throughout the AI system lifecycle, ensuring responsible development and deployment of AI solutions.

The certification, issued by DNV, validates Cognizant's commitment to ethical AI development and strengthens its position as a trusted digital transformation partner. According to Cognizant and Oxford Economics' study, 76% of businesses plan to leverage AI for new revenue streams, highlighting the growing importance of robust AI governance frameworks.

The certification process involved a comprehensive organizational strategy across marketing, IT, Legal, delivery teams, and customer service to embed responsible AI principles throughout the organization.

Positive

• First global IT service company to achieve ISO/IEC 42001:2023 certification, positioning as industry leader
• Strengthened competitive advantage in AI implementation and governance
• Enhanced trust and credibility for AI-related services
• Potential for increased revenue through AI services amid 76% of businesses planning AI adoption

Negative

• None.

Insights

Market Research Analyst

The ISO/IEC 42001:2023 certification positions Cognizant as a frontrunner in AI governance and implementation, potentially opening new revenue streams in the expanding AI services market. With 76% of businesses planning to leverage AI for revenue generation, this certification could give Cognizant a competitive edge in securing enterprise contracts. The accreditation addresses a critical market need as organizations seek trusted partners for AI implementation amid growing concerns about AI risks and ethical considerations.

The timing is particularly strategic as enterprises are increasingly prioritizing responsible AI practices in their digital transformation initiatives. This first-mover advantage in certification could help Cognizant capture a larger share of the enterprise AI market, especially among risk-averse clients in regulated industries who require stringent AI governance frameworks.

Tech Expert

The certification validates Cognizant's comprehensive AI management framework, covering important aspects like risk management, fairness, transparency and security throughout the AI system lifecycle. Their cross-functional implementation approach, involving marketing, IT, legal and delivery teams, demonstrates a robust organizational commitment to responsible AI practices. This systematic approach to AI governance could significantly reduce implementation risks and accelerate AI adoption among enterprise clients.

The standardization of AI practices across client engagements and internal operations will likely improve operational efficiency and scalability of AI solutions, potentially leading to better margins in AI-related services. This certification also positions Cognizant well for upcoming AI regulations, potentially reducing compliance costs and risks.

Certification recognizes Cognizant's leadership in developing, assessing, and deploying AI systems in a safe, trustworthy, and ethical way

TEANECK, N.J., Dec. 16, 2024 /PRNewswire/ -- Cognizant (NASDAQ: CTSH) today announced it has received accredited ISO/IEC 42001:2023 certification for its artificial intelligence management system. Cognizant is the first global IT service company to receive this accredited certification, which underscores Cognizant's commitment to responsible AI development and deployment while strengthening its position as a trusted partner in digital transformation.

"We are honored to receive the first ISO/IEC 42001:2023 accredited certification in our industry," said Ravi Kumar S, CEO at Cognizant. "In today's market, businesses demand partners who not only drive innovation but also align with their values and sustainability goals. This certification solidifies our role as a trusted leader in enabling ethical and sustainable digital transformation worldwide."

ISO/IEC 42001 is the world's first international standard for artificial intelligence management systems (AIMS). It provides organizations with a comprehensive framework to manage AI risks and opportunities throughout the AI system lifecycle, while ensuring responsible development and deployment of AI solutions. The certification was issued by DNV, a leading global provider of management systems certification and training.

"The international standard ISO/IEC 42001 provides a best practice for companies that wish to adopt artificial intelligence in a responsible manner. The fact that a leading IT player like Cognizant has now achieved accredited certification as the first global IT services company should inspire others to do the same.  It is a milestone achievement signifying that Cognizant has put process governance in place to assure a safe, reliable and ethical approach to AI, reducing risks and building trust - internally and externally," says Barbara Frencia, CEO of Business Assurance in DNV. 

"The certification process has not only validated Cognizant's AI framework but has also highlighted the exceptional efforts and commitment of Cognizant's associates in meeting the stringent requirements of this standard," stated Alexis Samuel, Senior Vice President and Head of Global Delivery Excellence at Cognizant.

According to Cognizant and Oxford Economics' New Work, New World study, 76% of businesses plan to leverage AI to create new revenue streams. The signaling of demand for AI is potentially ushering in greater business prospects along with a growing need among enterprises to accept more risk as they pilot and test the potential of the technology. As adoption accelerates, AI presents opportunities for enterprise transformation, requiring robust governance frameworks to help ensure success at scale.

"ISO/IEC 42001:2023 certification reflects our mission to align innovation with ethical and responsible practices," said Amir Banifatemi, Chief Responsible AI Officer at Cognizant. "For AI to truly deliver value, it must be designed and deployed with trustworthiness, accountability, and societal impact at its core. This milestone reinforces our leadership in building safe AI systems that empower businesses while advancing fairness, transparency, and sustainability across industries." 

Key aspects of ISO/IEC 42001:2023 certification include responsible AI development, risk and opportunity management, fairness, transparency, security, and reliability – with adaptability to technological advances and alignment with sustainable goals. Cognizant's journey toward this certification involved a comprehensive organizational and change management strategy that engaged teams across marketing, IT, Legal, delivery teams, and customer service to embed responsible AI principles throughout the organization's DNA. This cross-functional approach helps ensure consistent implementation of AI governance standards across all client engagements and internal operations.

About Cognizant
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.

Forward-Looking Statements

This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to the adoption and use of generative artificial intelligence, the effectiveness of artificial intelligence governance frameworks and the impact of generative artificial intelligence on businesses and the economy. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause outcomes to differ materially from those expressed or implied include general economic conditions, the impact of technological development and competition, the competitive and rapidly changing nature of the markets we compete in, the competitive marketplace for talent and its impact on employee recruitment and retention, and the other factors discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

For more information, contact:

U.S. Name Annette Busateri Email annette.busateri@cognizant.com

Europe / APAC Name Christina Schneider Email christina.schneider@cognizant.com

India Name Rashmi Vasisht Email rashmi.vasisht@cognizant.com

 

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SOURCE Cognizant

FAQ

What does Cognizant's ISO/IEC 42001:2023 certification mean for CTSH investors?

The certification positions Cognizant as a leader in AI governance, potentially increasing its market share and revenue opportunities in AI services, benefiting CTSH investors through enhanced competitive advantage.

How many companies plan to use AI for revenue generation according to Cognizant's study?

According to Cognizant and Oxford Economics' New Work, New World study, 76% of businesses plan to leverage AI to create new revenue streams.

What are the key aspects covered in Cognizant's ISO/IEC 42001:2023 certification?

The certification covers responsible AI development, risk management, fairness, transparency, security, reliability, and alignment with sustainable goals.

How did Cognizant implement the ISO/IEC 42001:2023 certification across its organization?

Cognizant implemented a comprehensive organizational and change management strategy involving teams across marketing, IT, Legal, delivery teams, and customer service to embed responsible AI principles throughout the organization.

What competitive advantage does the ISO/IEC 42001:2023 certification give CTSH?

As the first global IT service company to receive this certification, CTSH gains a competitive advantage in AI implementation and governance, positioning itself as a trusted leader in ethical and sustainable digital transformation.