In our first AI In Philanthropy series, we explored some ways AI is currently being used in philanthropy. From performing daily tasks like writing and reviewing grant applications to collecting data and analysis to enhance impact measurement, philanthropists are leaning into this technology for everyday tasks. But we can’t see where we’re going if we don’t know where we’ve been. So, in our second edition of this series, we’ll be taking a closer look at how AI is already changing the work of philanthropy and impacting the entire sector.
Given AI’s myriad uses, fear of worker displacement in philanthropy is real. In July 2025, The Chronicle of Philanthropy cited rapid AI adoption as a key reason for it in the sector. Another 2025 survey by KPMG revealed that 52% of U.S. workers across industries (including philanthropy) fear job displacement due to AI, an amount that almost doubled from 2024.
Undoubtedly, AI is replacing some routine tasks, such as data entry, copywriting and preliminary proposal review, which are common functions in both nonprofit and grantmaking organizations. However, it’s reshaping – rather than eliminating – most professional roles in philanthropy. As program officers use AI to summarize grant proposals or analyze trends, they free up time for higher-value tasks, such as deeper relationship-building and strategic thinking. As grants management teams automate routine compliance tracking with AI, communications staff leverage the technology for drafting and research.
By prioritizing workforce transition and upskilling, sector leaders are addressing job displacement concerns with tangible and viable solutions. Providing staff with training, such as how to design effective AI prompts, ensures that AI augments human expertise rather than substitutes for it.
Empowering Nonprofits with AI
Not only are donors using AI to improve their own productivity and impact, but they are helping nonprofit organizations do so, too. The Annenberg Foundation, whose efforts to adopt AI are spotlighted by the Technology Association of Grantmakers (TAG), recently surveyed both its staff and grantees regarding their respective AI needs and found that nonprofits have a greater and more practical need for AI usage, especially in areas like information analysis, fundraising and predicting outcomes. When asked what kind of AI support they would most like to receive, the grantees requested strategy, skills and tools to help them adopt new technology like AI. In response, the foundation is developing programs to immediately address its grantees’ AI needs.
From an operational standpoint, nonprofits – especially grassroots organizations – are notoriously understaffed. They can benefit tremendously from the efficiencies possible through AI. From helping to write grant proposals, to streamlining administrative tasks, to creating persuasive content for fundraising and advocacy, AI can free up valuable time for nonprofit leaders to focus on their highest priorities, such as cultivating strategic partnerships and securing additional funding.
When it comes to achieving greater impact and effecting real change, AI can most certainly be a powerful and transformative tool for nonprofits – that is, if they know how to use it.
In 2024, Michelle Armstrong, president of Ares Charitable Foundation, wrote a compelling article in Fast Company to encourage philanthropists to “support AI to be a force for good.” Funding nonprofits and providing them with resources to learn about AI can help them use it to address and solve existential crises like climate change, inclusive education, jobs and social protection, she says. As an example, she cites AI for Changemakers, a program of the Tech to the Rescue Foundation, is helping 110 nonprofits define their AI strategy and connect with technology companies offering pro bono guidance.
The idea is catching on, slowly but surely. In September 2025, The Center for Effective Philanthropy (CEP), after surveying 451 nonprofit leaders and 215 foundation leaders, reported that two-thirds of the respondents are using AI – yet only 11 percent of funders are providing support to nonprofits for AI implementation, and fewer than 20 percent of nonprofits say their funders have discussed AI with them. All those surveyed, however, plan to increase its use. Opportunity for philanthropists is ripe to fill this knowledge gap and help nonprofits achieve their important missions.
Leading the charge, several notable efforts since 2025 include: OpenAI Foundation disbursing $40.5 million to 208 nonprofits for AI adoption projects; KPMG U.S. Foundation distributing $6 million for nonprofit AI integration, including pro bono consulting and learning sessions; Salesforce Foundation committing $17 million to 18 nonprofits for AI readiness; and Patrick J. McGovern Foundation funding multiple initiatives to advance AI for good, such as health tech innovation in Africa, pollution accountability, and ethical journalism.
Harnessing AI for Good
Nonprofits are more effectively achieving long-term change with AI.
Tech-savvy nonprofits are making greater impact with their AI knowhow. Check out these examples:
- Digital Green is helping small-scale farmers improve their efficiencies and incomes with its AI-powered assistant, Farmer.Chat. The innovative tool is expected to reduce operational costs by 100x. In contrast, before introducing Farmer.Chat, Digital Green had reduced costs by 10x.
- Crisis Text Line, a mental health support organization, used AI automation to analyze more than 65 million text messages they received to learn what words in them were most associated with a high risk of suicide. Its volunteers could then triage messages and respond to 94% of high-risk messages in under five minutes.
- India-based ARMMAN applied AI to evaluate the risk of expectant mothers who were likely to drop out of telehealth outreach programs. It reduced the drop-out risk by 32%.
While AI has benefited both philanthropists and nonprofits, it’s important to look at this revolution technology through different lenses so we have a better understanding of the full picture. In our upcoming edition in this series, we’ll be exploring adopting AI with caution and governing AI in Philanthropy.
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