ABSTRACT
While digitalization, along with the accelerated use of data and AI, is leading to increased productivity and better data-driven decisions, adapting to these technological changes is not easy. Due to their unique characteristics, foundations face different types of challenges than for-profit organizations. These distinct challenges relate not only to the organizational resources, skills, or technology infrastructure but also to ethical, environmental, and reputational considerations. Although there is significant interest in AI within the philanthropic community, there is little concrete data on the adoption of AI by foundations. Key questions include the extent to which foundations are incorporating AI into their operations or supporting their grantees’ AI initiatives. Will this change soon? What risks and opportunities does AI present for these organizations, and what policies are being developed for its responsible and ethical use? This chapter is based on a survey and interviews conducted by Philea – Philanthropy Europe Association and Fondazione Compagnia di San Paulo with several European foundations. It explores foundations’ engagement with data and AI. The findings reveal a cautious approach to AI among foundations, with many waiting for technologies to mature and become more reliable and secure. Their concerns revolve around corporate interests, legal frameworks, and commitments to anti-discrimination, fairness, data safety, and privacy. The study suggests that philanthropy should play a proactive role in ensuring that AI is used ethically and fairly. It also questions whether philanthropies are fully leveraging their innovation potential and venture capital to develop AI models that serve the public good as an alternative to corporate technologies.
