As artificial intelligence (AI) tools become more widespread and versatile, organisations in every sector are grappling with the implications of this powerful technology. Charitable foundations are no exception.
In her January 2024 blog, ACF’s CEO Carol Mack noted that some of our members were starting to experiment with AI and think more widely about its impact on society. As the year draws to a close, how are we seeing this trend develop?
Through our recent Salary and operations benchmarking survey, we heard from a cross-section of ACF members about their use of and interest in AI. We found that while only a minority (18%) are already using AI in areas of their day-to-day work, a further 40% are exploring its possibilities.
That leaves fewer than half who are not currently planning to use AI at all. This group is heavily skewed towards smaller foundations, who may feel that with limited staff capacity, they do not have the time to explore AI.
However, as rising demand for grants increases the strain on many foundations’ workloads, any opportunities for technology to ease their administrative burden could become more attractive. ‘Increasing operational efficiency’ was the top reason for members exploring AI. As tools become better established, offering more tried and tested productivity gains, we may see more smaller foundations follow their larger peers in seeking these benefits.
As purpose-driven organisations, foundations are keenly aware of the ethical risks and potential wider impacts of AI. Our members expressed concerns about bias and data privacy, suggesting they are likely to proceed cautiously and responsibly on embedding AI into their funding practices or other aspects of their work.
Many foundations also acknowledge the limitations of their own understanding and expertise in this emerging and complex field. Added to this, the lack of clear AI guidelines for the sector remains a significant barrier to adopting this technology.
Yet despite these concerns and barriers, our survey found that far more foundations have a positive overall attitude towards AI than a negative one. What’s more, they rate themselves positively on several wider indicators of ‘data readiness’ – factors such as the accuracy of their data and how it is stored, reviewed and used in decision-making. Having these basics in place could make AI adoption more successful for foundations who choose to take this path in future.
Why might foundations take an interest in AI?
There are plenty of generic ways foundations can use AI, much like any other organisation. These typically focus on efficiencies through increased automation of routine tasks like note-taking, summarising or drafting copy. The prospect of freeing up staff time from ‘back office’ work to focus on more rewarding activities could be a strong internal driver for foundations to start exploring AI.
Thinking about uses that are more specific to foundations, some are already experimenting with how AI might help them generate new insights from data they hold, for example by analysing themes across large numbers of grant reports.
There are external drivers too. The 2024 Charity Digital Skills Report found that 61% of charities are using AI tools, including one in five who are doing so for writing and researching funding applications. This is likely to have immediate practical implications for foundations – for example, contributing to concerns about rising numbers of grant applications. Several funders have recently published policies and guidance on the use of AI by grant-seekers, and in the longer term this trend could have profound implications for how funders invite and assess applications.
Perhaps an even more compelling reason for foundations to engage with AI is the impact it will have on aspects of wider society that are at the heart of their missions. From healthcare to human rights, education or the environment, AI has potential to unlock new solutions to humanity’s greatest challenges – but also to inflict new harms. Foundations’ strategies will need to adapt to take account of these opportunities and risks as they continue to evolve.
What next?
In the coming years, will we see a widespread shift in foundation practice on AI? Our members’ cautious optimism certainly suggests this is possible, and there are several factors that could contribute to this.
1. Peer learning
As the foundation sector’s early adopters of AI share their work, from policies and guidelines to practical experiments, other foundations will be able to learn from this – and may be inspired to take their own first steps. This peer exchange has already started to happen through the AI for grant-makers group facilitated by CAST.
Dan Sutch, CEO of CAST, explains:
“Within the peer group, over 170 people from 125 grant-making organisations are sharing learning, practice, challenge and opportunities around AI. Given the likely scale of change and the implications for civil society, the group recognises that we’ll only match the speed of change if we act collaboratively – starting with exploring safely and sharing our experiences and learning. Peer learning, as well as a chance to engage with experts, tools and sector-insight is vital to this.”
2. Skills development
By continuing to educate and upskill themselves, foundations will become more confident navigating the possibilities and pitfalls of AI. ACF regularly partners with other experts to offer learning events for foundations on various aspects of technology and data. Upcoming events in early 2025 include:
- 2024 state of philanthropy tech survey
- Practical approaches to building a positive data and learning culture in your organisation
- AI and the modern grant-making organisation
3. External drivers
The external drivers for foundations to engage with AI – from charities’ use of AI in grant applications to its wider societal impacts – will continue to accelerate as the technology matures.
AI won’t be of equal relevance to all foundations, and each should consider its potential benefits and risks in their own unique context. Those who fund through long-term, personal relationships with a small number of charities in a specific local area or specialised field may not be affected in the same way as a generalist grant-maker assessing thousands of applications a year.
Focus on mission and values
The following pillars of Stronger Foundations – ACF’s framework to help foundations pursue excellent practice – can provide some useful starting points for thinking about AI.
- Be aware of the external context and your role in the wider ecosystem. What impact could AI have on the charities, communities or social issues that your mission focuses on, and what are the potential implications of this for your foundation’s strategy and governance?
- Proactively seek to understand how your operations affect others, and seek to avoid and redress harm. As part of a culture of impact and learning, foundations should carefully consider how to identify and reduce any unintended negative consequences of using AI.
- Identify and select funding practices that are most likely to fulfil your mission, and design processes in accordance with your values. If foundations can find ways to harness the potential benefits of AI safely – enhancing rather than replacing the uniquely human value that trustees, staff and stakeholders bring to their work – it could help them to use their resources even more effectively for social good.
Like many of the foundations in our survey, I’m cautiously optimistic. I’m excited to continue learning from those who are already experimenting with AI, and supporting others starting to explore it.
By Jim Cooke, Head of Practice, ACF