Non-profit organizations: Navigating legal risks when using AI

Non-profit organizations are discovering that they can use artificial intelligence (AI) in a wide variety of ways to achieve greater efficiency despite limited resources.

This includes boosting fundraising and increasing the organization’s impact on those who rely on their services. For example, AI can identify donor trends and help organizations make their fundraising efforts more targeted and efficient. Another example is the use predictive analytics to pinpoint where the highest concentrations of individuals who use their services are located. The non-profit organization can then focus on those areas to maximize its effectiveness.

Although AI has exciting potential benefits for non-profit organizations, there are also a number of of unique legal risks raised by its use. To minimize the impact of these risks, non-profit organizations can implement several practical steps:

    1. Develop an AI use policy: An AI policy should outline what AI can be used and how confidential and personal information can and cannot be used in AI, what disclosures need to be made about the use of AI, etc. Such policies help to establish accountability and transparency for the use of AI.
    2. Perform appropriate due diligence on AI vendors: Important considerations for AI vendors include selecting reputable vendors and programs that have carefully considered  key issues such as information protection, security vulnerabilities and intellectual property ownership. This due diligence will help an organization to make informed decisions as to what AI they use and to mitigate unexpected legal consequences.
    3. Educate and train individuals who use AI: Educating individuals on what AI is and how it works will help non-profit organizations to mitigate the associated legal risks.
    4. Monitor and enforce AI-related policies: Monitoring and enforcing AI-related policies will help non-profit organizations to have up-to-date practices and to identify non-compliance early on, thereby limiting their risks.

Other best practices regarding the use of AI systems can be found here.

The leading team at MLT Aikins can assist your non-profit organization with implementing the above steps. Working with our Privacy, Data Protection & Cybersecurity group gives your organization access to a large, skilled team of professionals with a deep understanding of the law, technology and the business implications involved in these types of undertakings.

Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.