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- The VRC Newsletter (August 20)
The VRC Newsletter (August 20)
SOC 2 + AI: Building Trust in a New Era of Compliance
SOC 2 in an AI-Driven World
SOC 2 has long been the gold standard for demonstrating that your systems are secure, available, and trustworthy. But in today’s AI-driven environment, trust means more than just protecting servers and data centers — it means governing your AI tools too.
From generative AI chatbots and predictive analytics to automated documentation and customer-facing content, artificial intelligence is now embedded into the daily operations of modern organizations. And that means your SOC 2 program must evolve to address a new generation of risks.
AI and the Trust Services Criteria
SOC 2 evaluates an organization’s internal controls against five Trust Services Criteria (TSC): Security, Availability, Processing Integrity, Confidentiality, and Privacy. AI introduces novel challenges across each:
Security: Are your AI tools protected from unauthorized access or manipulation?
Availability: Are your AI systems stable, properly monitored, and reliable?
Processing Integrity: Are AI-generated outputs accurate, explainable, and free from bias?
Confidentiality: Is sensitive data used in AI training and inference protected appropriately?
Privacy: Are users’ personal data and rights respected when integrated with AI technologies?
These aren’t theoretical questions anymore. They’re real concerns for auditors, regulators, and customers alike.
New Requirements for SOC 2 Audit-Readiness
Organizations pursuing SOC 2 in 2025 must account for the way AI technologies touch their systems and processes. This includes:
✅ Including AI tools and data flows in risk assessments
✅ Monitoring AI outputs for accuracy, integrity, and appropriateness
✅ Documenting AI vendor controls and governance policies
✅ Training staff on secure and ethical use of AI
These steps are no longer “nice to haves.” They’re table stakes for proving your systems are worthy of trust in a data-driven world.
VRC: Your SOC 2 + AI Partner
At VanRein Compliance, we help organizations align SOC 2 programs with modern expectations. Whether you’re preparing for your first audit or updating your controls for re-certification, we integrate AI oversight into your readiness roadmap with the help of our exclusive VRC1 compliance platform.
From customized risk assessments to policy development, employee training, and vendor evaluations — we make sure your controls are clear, defensible, and future-ready.
📬 Already a VRC client? We can bundle our services saving you money and time!
AI is here to stay and it’s reshaping the definition of trust. SOC 2 remains a powerful signal of that trust, but only if your controls reflect the reality of your evolving technology stack. With AI in the picture, the bar is higher — but so is the opportunity to lead.
📞 Ready for SOC 2 in the Age of AI?
The bar for trust is rising and traditional SOC 2 audits aren’t enough. With AI systems now part of your service delivery and compliance landscape, it’s time to rethink your readiness.
👉 Schedule your SOC 2 + AI Readiness Call to identify your risks, align your controls, and show your customers that your compliance evolves as fast as your technology.
Learn from this investor’s $100m mistake
In 2010, a Grammy-winning artist passed on investing $200K in an emerging real estate disruptor. That stake could be worth $100+ million today.
One year later, another real estate disruptor, Zillow, went public. This time, everyday investors had regrets, missing pre-IPO gains.
Now, a new real estate innovator, Pacaso – founded by a former Zillow exec – is disrupting a $1.3T market. And unlike the others, you can invest in Pacaso as a private company.
Pacaso’s co-ownership model has generated $1B+ in luxury home sales and service fees, earned $110M+ in gross profits to date, and received backing from the same VCs behind Uber, Venmo, and eBay. They even reserved the Nasdaq ticker PCSO.
Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.

BST & Co. CPAs, LLP (“BST”), a New York public accounting, business advisory, and management consulting firm, has agreed to a $175,000 HIPAA settlement and a 2-year corrective action plan after failing to conduct a proper risk analysis before a ransomware breach exposed client PHI.
OCR flagged BST’s lack of safeguards as a serious HIPAA Security Rule violation—another reminder that business associates are held to the same standards as covered entities.
The New Standard for Responsible AI
AI is no longer an emerging technology—it’s a foundational one. From healthcare to finance, marketing to HR, artificial intelligence is already powering decisions that impact people, data, and trust. But as AI adoption surges, so do the risks: bias in algorithms, lack of transparency, privacy violations, and inadequate oversight.
According to recent McKinsey Global Surveys, over 78% of companies have now integrated AI into at least one business function, yet only 18% report having an enterprise-wide council or board with the authority to oversee responsible AI governance. This significant disconnect between rapid technological adoption and lagging accountability is creating a dangerous blind spot for a majority of organizations.
Enter ISO/IEC 42001—the first international management system standard focused specifically on responsible AI.
The Overview
Released in late 2023, ISO/IEC 42001 provides a formalized framework for designing, developing, deploying, and managing AI systems in a safe, ethical, and transparent way. Much like ISO 27001 does for information security, ISO 42001 helps organizations implement AI governance practices that are auditable, repeatable, and scalable.
The standard addresses critical areas such as:
⚖️ Ethical Principles – fairness, human oversight, and accountability
🔍 Transparency – documentation of AI logic and decision-making
🧠 Risk Management – assessing and mitigating AI-specific risks
🔐 Data Governance – securing and sanitizing training and operational data
🤝 Stakeholder Engagement – communication, policy awareness, and training
ISO 42001 is also adaptable. It applies to both organizations that build AI and those that use it, no matter the industry or size.
It Matters Now
Governments and regulators are catching up fast. The EU AI Act, signed in 2024, is already imposing heavy obligations on high-risk AI systems. In the U.S., Executive Orders and Department of Justice guidance are making AI risk part of compliance expectations. Investors, partners, and consumers are starting to demand proof of AI oversight.
In short: ISO 42001 is quickly becoming the benchmark for trustworthy AI. Forward-thinking organizations aren’t waiting for regulation to catch up — they’re implementing ISO 42001 to reduce risk, improve transparency, and stay ahead of reputational damage.
Who Should Care?
If your organization:
Integrates or develops AI tools
Handles sensitive data used in training or inference
Faces regulatory or audit requirements (HIPAA, SOC 2, ISO 27001, etc.)
Wants to build customer trust in your AI-driven offerings
…then ISO 42001 is not just “nice to have”—it’s becoming essential.
Whether you're a healthtech startup using predictive diagnostics or an enterprise deploying AI copilots in your workflows, AI governance is now a compliance priority.
A Call to Lead
The gap between AI innovation and responsible oversight is closing fast. ISO 42001 gives you the blueprint to lead not just in tech, but in trust.
Schedule an AI Readiness Call with VanRein Compliance and explore how ISO 42001 fits into your compliance roadmap. We’ll help you build the policies, train your team, and prepare your systems so you can innovate with integrity.
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Unmanaged AI = Unmanaged Risk. Shadow IT Could Be Spreading in Your Org
You wouldn’t allow unmanaged devices on your network, so why allow unmanaged AI into your meetings?
Shadow IT is becoming one of the biggest blind spots in cybersecurity.
Employees are adopting AI notetakers without oversight, creating ungoverned data trails that can include confidential conversations and sensitive IP.
Don't wait until it's too late.
This Shadow IT prevention guide from Fellow.ai gives Security and IT leaders a playbook to prevent shadow AI, reduce data exposure, and enforce safe AI adoption, without slowing down innovation.
It includes a checklist, policy templates, and internal comms examples you can use today.
