By Shareen Patel, policy and influencing officer at ACEVO
Artificial intelligence (AI) is “predicted to bring about seismic changes to all sectors of the economy and charities are unlikely to be an exception”. This is what the Charity Commission stated in their blog on AI, outlining its current regulatory position on it. There is growing awareness alongside speculation and worries about the use of AI and the part it could play in the way charities operate. The Commission has said that charities should remain mindful of the risks inherent to the use of AI and its implications for decision making. It is crucial that AI be used responsibly and in ways that furthers a charity’s purpose. This blog is for charity chief executives to take to their trustees to ensure that all are aware of the uses of AI and the role it can have.
What you should consider, as per the Charity Commission’s advice, when it comes to AI:
- How you might use it and if the options available are right for your charity.
- The advantages and risks – and how these would be managed – in the context of your trustee duties and charity objectives. This could involve looking at what gaps can be filled, or insights generated by an AI tool, what skills are needed to use these tools to your charity’s advantage and if the charity’s trustees, staff or volunteers have those skills.
- How your staff and volunteers may already be using AI.
- If having an internal AI policy would be beneficial so it is clear how and when it can be used in governance, by employees in their work, or in delivering services to your beneficiaries.
- External risks and reputational damage arising from the misuse and recirculation of AI, such as fake news or deep fakes (AI generated images).
Risks
You should ensure your charity is compliant with wider legal obligations, which can include taking care around copyright and avoiding harmful content. Charities with beneficiaries who might be at higher risk, such as children, or who hold sensitive data like medical information, should be particularly mindful of the level of risk. You should ensure you follow data protection regulations such as GDPR and implement robust cyber security measures to safeguard data integrity and maintain trust.
The governance perspective
AI can be used in governance in several ways. One of the more advantageous uses is that it can free up staff time and reduce costs of your charity’s operations through using it for the more repetitive tasks. It can help in terms of managing data related to donors and beneficiaries, if the data is kept protected as some AI tools handle data in less secure ways and you should be aware and mindful of this. It can help determine patterns and trends to assist you in forecasting your charity’s donation levels. AI can help you personalise your communication and tailor messages to improve engagement and effectiveness.
We advise you to ensure that in every use of AI, there is human oversight for transparency and accountability. When approaching the integration of AI into your governance, you should consider any implications. Strategies should be implemented to identify and mitigate biases that could occur in AI systems to ensure fair decision-making and no discriminatory outcomes. This can be done through documenting the decision-making process and providing explanations for AI-driven decisions.
To help with AI in your governance, you should ensure your staff and trustees have the training to be able to fully understand AI systems’, capabilities, and implications. The way AI is implemented in a charity varies as it is dependent on a charity’s size, resources and particular needs. We advise charity chief executives and trustees to carefully assess your requirements for AI and identify where it can add value, but to also consider the risks and vulnerabilities associated with it and potential pathways to mitigate them.
The regulatory landscape
The Charity Commission is continuing its work on AI to learn more about its potential and risks, and how it fits into its regulatory role. The Charity Commission doesn’t anticipate producing new specific guidance on the use of AI right now, but instead is encouraging trustees to apply their existing guidance to new technologies as they emerge. The Commission will, however, update guidance where appropriate to reference examples of new technology, as with the refreshed guidance on internal financial controls.
The 2023 Charity Digital Skills report suggests that 35% of charities are already using AI for certain tasks and that a further 26% had plans to do so in the future. ACEVO is hosting an online webinar on Wednesday 22 May 11:00-12:00. Book your place to hear Aidan Forman, Director of Technology RNIB and Helena Sans, Head of TMT, Barclays Corporate discuss the opportunities presented by innovation and AI, the barriers to be overcome such as funding and expertise, how to get started with AI, and how to help staff on the journey.
Further reading
- Charity Commission trustee guidance.
- Information Commissioner’s Office, Guidance on AI and Data Protection.
- New Philanthropy Capital (NPC) – AI for Charities: What you need to know.
- Charities Aid Foundation Bank – AI for charities: bringing donors and staff on the journey
- Charity Comms – AI Hub.
