What's Happening?
The integration of artificial intelligence (AI) in the nonprofit sector is raising significant governance challenges. As AI becomes more prevalent, nonprofits are confronted with the need to develop governance frameworks that address the ethical and operational
implications of AI technologies. Despite the potential for AI to enhance efficiency and capacity, many nonprofits lack formal policies governing its use. This gap highlights a broader issue of governance, as decisions about AI deployment are often made by external vendors and policymakers, rather than the nonprofits themselves. The sector is at a crossroads, needing to decide whether to actively shape AI governance or face it as an imposed mandate.
Why It's Important?
The governance of AI in the nonprofit sector is crucial because it affects how these organizations operate and serve their communities. Without proper governance, AI could exacerbate existing inequalities by concentrating power and resources among larger organizations, leaving smaller nonprofits at a disadvantage. The lack of governance frameworks also poses risks related to accountability and transparency, as AI systems can encode biases and make decisions that impact vulnerable populations. Addressing these challenges is essential to ensure that AI serves the sector's mission of equity and community accountability, rather than becoming a tool for control and surveillance.
What's Next?
Nonprofits are encouraged to develop clear AI use policies that involve staff and community input, ensuring that governance practices reflect the sector's values. There is also a need for nonprofits to engage in public and policy debates about AI regulation to influence how these technologies are deployed. As federal and state approaches to AI regulation diverge, nonprofits must navigate these complexities to protect their interests and those of the communities they serve. Building internal capacity to identify and address AI-related harms will be critical in shaping a governance framework that aligns with nonprofit values.
