Nonprofit boards play a pivotal role in helping organizations fulfill their missions. Traditionally viewed as the guardians of organizational vision and accountability, board members are seeing a new component of their remit: overseeing how artificial intelligence (AI) solutions are being integrated into the organization.
Nonprofits are increasingly using AI, with 82% of respondents from BDO’s 2024 Nonprofit Standards Benchmarking Survey reporting AI use in some capacity. But there are also complex challenges associated with AI implementation, including ethical considerations, resource allocation, and deciding where and how to invest in AI. To navigate these challenges, organizations are turning to their boards for guidance.
While nonprofit leadership is managing day-to-day operations and staff are implementing specific AI tools, boards are responsible for high-level strategy, governance, and long-term vision. Nonprofits are relying on their boards to help guide AI adoption in a way that aligns with the organization's mission, values, and ethical standards.
Keep reading to explore five critical steps boards should take to effectively guide AI implementation within their organizations.
1. Elevate Board-Level AI Literacy
The 2024 Benchmarking Survey found that in the past 12 months, 40% of nonprofit leaders have taken steps to assess gaps in overall board knowledge – and 40% have developed plans to enhance board members’ skills. Nonprofits aiming to enhance their boards' AI skills should prioritize thorough knowledge of how to navigate its adoption and implementation.
Board members should understand the benefits AI could have for their organization, as well as the potential risks, biases, and ethical implications AI tools may introduce. Some of these will be universal, while others are unique to nonprofits. AI education can include formal resources, such as AI academies or solution-specific trainings, as well as more informal resources like podcasts and white papers.
And while all board members should be AI literate, specific board members can be designated to spearhead AI education and training. These individuals could later serve as the bridge between board members and organization leadership during AI implementation.
2. Define Your AI Vision
As stewards of an organization’s mission and values, one of the board's most crucial roles in AI implementation will be defining a clear vision for AI use. This will be the foundation for all AI-related decisions and activities within the organization.
- Align AI use with mission and values. It's crucial for an organization’s AI vision to support its core mission and values. This helps organizations integrate AI solutions that enhance the mission rather than distract or detract from it.
- Define ethical uses for AI. Boards should clearly define what AI uses are acceptable and instances where it is not (such as using sensitive data in public generative AI programs that retain uploaded information). These guidelines should help protect sensitive data, truthfulness in communications, and transparent decision-making.
- Address concerns about equity and access. Consider how AI implementation might impact different stakeholder groups. An organization’s AI vision should make sure any solutions that are implemented are accessible to all and do not exacerbate existing inequalities.
3. Lay the Foundation
Once an AI vision has been articulated, organizations must ensure its adherence. The board will be responsible for overseeing the responsible adoption of AI. This starts by defining what oversight will entail and delineating roles and responsibilities across the organization. Some boards may choose to create an AI subcommittee for their oversight role, while others may integrate AI oversight into the duties of an existing committee.
One of these responsibilities will be working with organizational leadership to develop policies that guide when and how AI can be used. These policies should follow the ethical uses defined as part of the organization’s AI vision and should address data privacy, ethical considerations, and potential risks.
Clear expectations should also be set for how employees report on AI implementation to the board. This could include regular updates on AI initiatives, performance metrics, and evaluations of risks and ethical use.
4. Prepare Your People
As nonprofits prepare for AI adoption, boards can help create an environment where AI can be comfortably and efficiently embraced by stakeholders. Board members need to ensure that AI-related processes and procedures are aligned with the established AI vision and governance framework. In addition to oversight, this stage of AI adoption is an opportunity for board members to demonstrate their knowledge and excitement about how AI will benefit staff, leaders, and the organization. Boards should encourage (and perhaps facilitate) AI training for leadership teams.
Board members will also have a responsibility to support leadership by helping to address employee concerns. These concerns will likely include how AI will be used and the potential for job displacement. Board messaging should address these concerns by focusing on how AI will support employees in their day-to-day work rather than replace them.
5. Go and Grow
As organizations focus on how AI integration will level up their processes and procedures, boards can take the lead in exploring ways that AI initiatives can benefit the communities they serve, such as establishing a free AI training course at a community center. In this way, nonprofits can work to bridge the digital divide and help communities benefit from the proliferation of AI.
The Road Ahead
AI implementation is not a one-and-done project. Instead, it is an ongoing initiative that will require significant planning and attention at all levels of the organization from the top down. By understanding and embracing the crucial role they play, boards can ensure that AI becomes a powerful tool that helps to advance the missions of the nonprofits they serve.
Download our Practical Guide to AI to learn more about becoming an AI-ready organization.