Artificial intelligence (“AI) presents nonprofit organizations with opportunities and risks that warrant careful legal and operational scrutiny. On one hand, AI tools offer substantial efficiencies — streamlining work such as grant writing, donor communications, and program analytics in ways that can meaningfully expand your mission-driven impact without requiring additional resources. On the other hand, you must be aware of the security, data privacy, and legal privilege risks that AI brings. Additional obligations to ensure security and data privacy may arise where AI systems process personally identifiable information of beneficiaries, donors, or volunteers. You should also be mindful of liability exposure arising from AI-generated content — including but not limited to potential claims of copyright infringement or misrepresentation.
If you are thinking about adopting AI-driven tools, we encourage you to establish a written AI use policy approved by your board of directors to ensure everyone in your organization understands how best to use AI while keeping the organization safe.