Giving Compass' Take:
- Jean Westrick presents guidelines for navigating AI implementation in the philanthropic sector, emphasizing the importance of responsible and ethical use of AI.
- How can philanthropy balance innovation with ethical responsibility in adopting AI to maximize impact while safeguarding trust with donors and communities?
- Learn more about best practices in philanthropy.
- Search our Guide to Good for nonprofits in your area.
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As grantmaking organizations increasingly explore how AI tools can transform the way we work in civil society, the Technology Association of Grantmakers (TAG) recently released results from a global survey of grantmakers in our 2024 State of Philanthropy Tech report. Reflecting the technology and operational reality for more than 350 foundations globally, the report offers data to reflect upon our current state and chart a responsible course for AI in 2025 and beyond, navigating AI implementation in the sector.
It is clear from the findings that while AI experimentation is high, both guardrails for usage and enterprise-wide integration are still nascent. Here are a few highlights:
- 81 percent of foundations report some degree of AI usage; however, enterprise-wide adoption remains emergent, with just 4 percent of respondents indicating AI usage across the entire organization.
- Only 30 percent have an AI policy in place while just 9 percent have both an AI policy and an AI advisory committee.
- For those grantmakers leveraging AI, most report a rudimentary usage of generative AI for tasks such as meeting notes/video transcription (71 percent) or drafting report, emails and memos (67 percent).
Reflecting upon these findings, I find myself concerned. As society grapples with AI, I believe in the vital role of our leadership as grantmakers. Yet the lack of formalized structures to guide AI usage — including policies and advisory committees — raises questions about our readiness to leverage AI responsibly.
Barriers to Navigating AI Implementation
In addition to AI usage and governance, the State of Philanthropy Tech report identifies several barriers to more meaningful and strategic adoption of AI. Chief among them are privacy and security concerns (55 percent), followed by a lack of necessary skills (43 percent) and uncertainty about relevant use cases within philanthropy (40 percent).
Foundations are, understandably, approaching AI with caution. As grantmakers, trust is our currency; building and maintaining that trust is critical to our work. While we steward financial resources, we also steward sensitive data on behalf of our nonprofit partners and must maintain the highest ethical standards. Concerns around bias, fairness, transparency, and accountability must be central to any responsible adoption strategy.
Read the full article about ethical AI implementation by Jean Westrick at The Center for Effective Philanthropy.