Artificial Intelligence (AI) holds transformative potential for nonprofits, the past two years with ChatGPT-like tools have proven it. However, successful (sustainable, responsible, beneficial) AI adoption in this sector requires more than access to tools and logins; it calls for dedicated leadership to guide and shape its implementation.

This article explores this crucial role of nonprofit leadership in driving ethical AI adoption by leveraging insights from Namaste Data’s inaugural research AI Equity Project 2024.

Is leadership the missing key to successful AI adoption in nonprofits?

The AI Equity Project report reveals that the adoption of AI in nonprofits is still at an early stage, with most organizations primarily engaged in basic data collection and simple analysis. Advanced AI applications, such as machine learning, remain closer to organizations with more resources. One of the most significant factors holding back progress is the lack of leadership support. Many nonprofits lack a well-defined AI strategy and are uncertain about where to begin or how to leverage AI meaningfully.

Leadership plays a critical role in this journey. When leaders are committed to understanding and implementing AI, they can effectively pave the way for successful adoption. Leaders can be the champions of change—setting the vision, allocating resources, and ensuring that AI initiatives are aligned with the organization's mission and values. Without this commitment, AI adoption can become a fragmented effort, lacking clear direction and impact.

Another key insight from the report is in the area of data equity—developing, deploying, and using data in a way that prioritizes fairness, inclusivity, and justice, especially for historically marginalized communities. The reality is that many nonprofit leaders are still navigating the concept of data and AI equity.

While the term "data equity" is familiar to many, the report highlights a knowledge gap when it comes to understanding how to implement equitable data practices. Nonprofits may collect diverse data—from demographics to donor engagement—but without equitable practices, data can inadvertently reinforce biases or lead to inequitable outcomes. It is up to leadership to guide their organizations in creating data practices that are transparent, inclusive, and reflective of the communities they serve.

Leadership focus for beginning to adopt AI

Here are three areas of focus highlighted by the report:

• Lack of coordinated data management: Many nonprofits use a mix of tools that results in data silos and inefficiencies. This fragmented approach limits AI's potential impact. Leaders can start by prioritizing investments in data infrastructure and work toward integrated data management systems. By fostering a culture that values data, leaders can ensure their organizations are not just collecting data but using it effectively for decision-making.
• Need for training and capacity building: A major insight from the report is the need for training programs tailored to the specific needs of nonprofit staff. Leadership must champion ongoing learning, offering opportunities for their teams to develop AI and data equity skills. This includes both technical training and understanding the ethical implications of AI. Leaders who invest in capacity building empower their teams to use AI responsibly and effectively.
• Fear of bias and ethical concerns: Ethical considerations, such as bias in AI algorithms, are significant concerns for nonprofits. Leaders must establish ethical guidelines for AI usage, ensuring transparency, minimizing biases, and focusing on equitable outcomes. Leaders should also engage external experts to provide guidance on ethical AI, ensuring practices align with both organizational values and broader ethical standards.

For nonprofit leaders who’re ready to lead their organizations into the AI era, the following steps can help ensure a smooth and ethical adoption process:

1. Develop an AI vision: Start by defining how AI can support your organization’s mission. What challenges could AI help solve? Whether it’s optimizing program delivery or improving donor engagement, a clear vision will guide your AI strategy.

2. Build (or follow an existing) ethical AI framework: Establish guidelines for ethical AI use, including principles around transparency and equity. Engage the entire team in discussions about ethical AI and make these conversations ongoing as AI becomes integrated into your operations.

3. Invest in training and capacity building: Identify the skills your team needs to effectively use AI, and invest in training programs that build those capabilities. Consider partnering with external consultants to provide specialized training in AI and data equity. Foster collective learning, ensuring everyone—from leadership to frontline staff—has a foundational understanding of AI.

4. Collaborate and partner: AI adoption doesn’t happen in isolation. Collaborate with other nonprofits, tech developers, and sector experts to share knowledge and best practices. By engaging in partnerships, nonprofits can accelerate their AI journeys and make the most of available resources.

5. Engage your board and funders: Leadership support isn’t limited to the executive team; it extends to the board and funders. Engage your board in conversations about AI and data equity, helping them understand its potential impact on the mission. Advocate for funding to support AI initiatives and demonstrate the value they bring to both your organization and the communities you serve.

Yes, AI has the potential to both empower and oppress, in ginormous amounts. And no, a single person cannot tackle AI's challenges alone. This is a collective effort with individual accountability.

The AI Equity Project report makes it clear, that while AI has immense promise, successful adoption in the nonprofit sector depends on leadership. The call to action for nonprofit leaders is not only to adopt AI, but to do so in a way that aligns with their mission of creating a just and inclusive world.

By stepping up as champions of ethical AI, nonprofit leaders can ensure that AI becomes a tool that serves all communities equitably, driving positive change and impactful outcomes for those who need it most.

Meena Das (she/her/hers) is the CEO, consultant, and facilitator at NamasteData. Namaste Data is focused on advancing data equity for nonprofits and social impact agencies. Namaste Data recently conducted the study AI Equity Project with Michelle Flores Vryn (as co-lead of the study).