What's Happening?
Nonprofit boards are increasingly being called upon to integrate artificial intelligence (AI) governance into their core responsibilities. As AI technology becomes more prevalent, boards are advised to expand
their oversight beyond traditional IT guidance to include ethical governance and fiduciary duties. This shift is emphasized by leading sector publications like Nonprofit Quarterly, which highlight the importance of aligning AI technology with organizational missions and values. Boards are encouraged to avoid the 'efficiency trap'—prioritizing cost-cutting over mission impact—and to address algorithmic blind spots that could lead to biased outcomes. Practical steps for boards include implementing responsible AI frameworks, conducting bias audits, and ensuring transparency in AI use.
Why It's Important?
The integration of AI governance into nonprofit board responsibilities is crucial for maintaining ethical standards and aligning technology with organizational missions. As AI systems can inadvertently introduce biases, it is vital for boards to ensure that these technologies do not undermine the values and goals of the organization. By focusing on ethical AI use, boards can help prevent the exclusion of marginalized communities and maintain trust with stakeholders. This approach not only safeguards the integrity of the organization but also positions AI as a tool for enhancing mission impact rather than a source of unchecked challenges. The emphasis on transparency and accountability in AI use is essential for fostering trust among donors, beneficiaries, and partners.
What's Next?
Nonprofit boards are expected to continue developing and refining AI governance frameworks to address emerging challenges and opportunities. This includes upskilling board members with technology or data governance experience and investing in AI literacy for key team members. Boards will also need to establish clear escalation protocols for ethical breaches and ensure that cyber insurance policies address AI-related incidents. As AI technology evolves, ongoing audits for bias and model performance will be necessary to maintain compliance and transparency. By championing ethical AI governance, boards can help shape the future of the nonprofit sector and ensure that AI serves as a driver of mission impact.
