In my experience delivering AI training workshops to nonprofits, the vast majority of participants admit to experimenting with generative AI (GenAI) for content creation; however, most bring their own GenAI tools to work because the tools have not been officially provisioned. The majority also lack a formal acceptable use policy or provide training. It is rare that I encounter a nonprofit with a strategy for using AI to transform workflows at scale that could reshape their operations, fundraising, and program delivery.
Still, the ServiceNow research discovered that some nonprofits are pulling ahead as AI Pacesetters. These organizations are seeing real returns on their AI investments. How? By accelerating their adoption, leveraging AI at scale, and cultivating the right skills and culture.
Here's how you can join their ranks:
1. Strategy and leadership
Pacesetters have a clear, shared AI vision that drives transformation in all organizations—nonprofits and for-profits alike. They ensure leadership team engagement, with 63% of all respondents reporting active involvement in AI efforts compared to just 33% for other organizations.
As a leader, you need to set this vision and foster a culture of innovation. But that doesn't mean becoming a tech expert overnight. Start by aligning AI with your overall strategy and mission. Form a core team that understands:
- How AI can transform your work
- Your nonprofit's strategy and impact goals
- How stakeholders' needs are evolving
- Workforce implications
- AI ethics and responsible use
Instead of focusing on small use cases, prioritize strategic transformational initiatives that can significantly strengthen your nonprofit’s impact and outcomes. This ensures AI adoption is driven by mission, not just novelty.
2. Investment and measurement
While the study found that 65% of nonprofits plan to increase AI investment, only 37% of organizations have defined metrics to measure AI impact. Pacesetters are more likely to boost spending by 15% or more. If you want your nonprofit to join the ranks of Pacesetters, you need to invest and measure results.
Approach AI adoption strategically. Define how it will support your key objectives—whether that's improving program delivery, enhancing fundraising, or streamlining operations. Allocate resources thoughtfully, balancing quick wins that demonstrate value with longer-term, transformative projects.
Develop relevant KPIs that measure both the technical success of AI implementations and their impact on your mission-critical outcomes. Consider both quantitative metrics (such as improved efficiency and increased donations) and qualitative measures (such as enhanced stakeholder engagement, improved decision-making, and improved staff morale). Measuring success is not a process where you set it and forget it. Regularly review and adjust your AI metrics, and be willing to pivot based on results and changing needs.
3. Reimagining workflows
This is where many nonprofits stumble. Only 29% are integrating AI across different functions. Pacesetters, however, are inventing new cross-functional workflows that leverage human-AI collaboration, or “co-intelligence.”
Don't just plug AI into existing processes. Use AI adoption as a catalyst to reimagine how work gets done across your entire organization. Break down silos and look for opportunities to create more interconnected, efficient workflows.
Crucially, involve your staff in co-creating productivity measures to ensure that AI adoption enhances work rather than piles on more tasks for an already overstressed workforce. Think beyond speed and efficiency. Consider how AI contributes to innovation, strategy, and outcomes.
Remember, the goal is not just to use AI tools within existing structures and departments, but to reimagine how your entire nonprofit operates in an AI-powered world, ultimately improving your ability to serve your mission.
4. Nurturing AI-ready talent
The right talent mix is crucial, yet only 27% of executives believe they have the skills needed to execute their AI strategy. Pacesetters are actively hiring for roles like AI configurators and data scientists while also upskilling their existing workforce.
Develop a comprehensive talent strategy that includes both hiring and upskilling initiatives. This means that you need to focus on skills rather than job descriptions. When recruiting for positions, think about alternative talent pools, such as freelancers, who may be more AI-ready.
Foster a culture of continuous learning to keep pace with evolving AI technologies. Don’t underestimate your staff’s readiness for and comfort with AI tools. While AI tools can be as easy to use as asking questions or giving instructions, staff will still need regular practice and use.
5. Responsible data and AI governance
AI Pacesetters understand that sound data practices are the foundation of success. They're making significant progress in formalizing data governance and addressing evolving security and ethical concerns.
As a leader, champion these efforts. Allocate necessary resources to data quality, privacy, and security. Develop clear policies on data collection, storage, access, and use for AI applications. Continue to revisit AI ethics with your leadership team to ensure they evolve with changing technology and regulations. Implement strong data protection measures, including encryption, anonymization, and access controls.
Consider forming an AI ethics advisory board with both internal and external experts to oversee these efforts. It should not be solely a technical implementation. You may need to recruit outside ethics advisors with expertise in responsible use to provide guidance on which decisions or processes can be fully automated and what requires human oversight. You will also need to set up a process for ongoing AI risk assessments and mitigation and include mechanisms for stakeholder feedback on AI systems. Audits and feedback help build trust, an essential building block for nonprofits.
