Artificial intelligence (AI) is developing rapidly, creating both opportunities and challenges for charities. According to the Charity Digital Skills Report 76% of charities are already using AI in some form. As AI becomes embedded in charitable operations and digital services, it is essential for charities to understand the unique risks involved. These include ethical, legal, and practical considerations.
This article explores key points for charities considering using AI in their operations.
- Purpose and ethics. Think about whether the AI tool you are planning to use fits in with your charity’s mission and how it will help your organisation achieve its broader goals. How does the use of AI align with your charities’ purpose? Consider whether the use of AI could impact your reputation, detract from your goals, or damage trust in your organisation.
- Understand your goals. Before you start to use an AI product in your organisation make sure you understand what you want to achieve and how the tool you have selected will help you do this. Make sure you understand what the tool’s limitations are, as no tool or software is going to be a silver bullet. Understanding the tool you are using will reduce the risk of “black box problem” – where an AI tool makes decisions and it isn’t clear how that decision was made. This makes it difficult to diagnose and fix any problems which occur.
- Quality of input data. Think about, and make sure you understand, where the input data has come from. Any AI tool you use will reflect the data set it has been trained with and there is a risk that biases in the training data will cause biases in the outputs produced. Consider when the input data was collected, as there will have been a cut-off date for the inputs, which means that the outputs produced by the AI tool may not reflect the latest data available. If the system is drawing data from your systems consider whether this needs to be targeted or limited so that the system does not draw on outdated information.
- Circuit breaker. If outputs of an AI system have any potential to cause harmful actions within your organisation (e.g. a decision making system for a critical business function) then it is essential that the system has a “circuit-breaker” providing the ability for a human to override a product and stop this harm from occurring. Make sure you gain contractual assurance from your supplier that a product contains this functionality (known as a “circuit-breaker clause”) if a system poses this risk.
- Environmental impact. Consider the environmental impact of AI. Like everything we use, AI has an environmental impact. Training a new model uses a huge amount of energy and water and produces “e-waste”, which can contain difficult to dispose of chemicals. Using a pre-trained model will help reduce this, but as with everything your business uses you will need to consider the environmental impact. The data centres which power AI systems also use a significantly higher amount of energy to run compared to more traditional software solutions. Speak to potential suppliers to find out what they are doing to increase the energy efficiency of their AI systems or offset the carbon produced by their systems.
- Impact on individuals. Think about how the use of AI impacts individuals and certain groups, and whether the use of AI could have more of an impact on one group than another. You have an obligation under the Equality Act not to discriminate, so it is important you consider this. For example, if you switch to an “AI chat bot” for your customer services could this disadvantage users who are less tech-savy? Think about what you could do to mitigate this risk (e.g. requesting a warranty from your supplier that it has trained and tested input data to ensure compliance with the Equality Act). If an AI system is going to process personal data then consider whether you need to carry out a data protection impact assessment in relation to that tool.
- Confidentiality, data and IP. What data and confidential information are you going to be sharing with the AI tool? Do you have a right to share this information, and is it ethical to do so? Do you understand whether that data or information will be kept confidential, or will it be used to train the AI model? If you are going to share any personal data with the AI tool then you need to consider how you will comply with your obligations under data protection legislation when doing so. If you are unsure then ask for additional information or reassurances from the supplier. Make sure your contract reflects what the parties have agreed in respect of IP ownership for any output data. UK copyright law is not yet clear as to the ownership of AI generated outputs, so it is best to agree this upfront to avoid any inadvertent infringement.
- Include a trial and testing period. Don’t rely on AI from the get go – most AI tools don’t provide accurate information all the time, and there are known issues with AI “hallucinations”. You will need to think about whether this is likely to be an issue and put in place safeguards to prevent this. Make sure you don’t commit to any upfront payments for a long term arrangement with a supplier, until you have completed a testing or trial period and you are confident the AI system can be implemented successfully in your business. Try before you buy!
- Developing an AI Strategy and Governance Framework. While 76% of charities are using AI in their organisations, only 48% of charities report developing an AI policy. This is an important step in adopting AI – without an internal policy charities risk individuals using AI in inappropriate or risky ways. An internal policy can clarify for employees how AI should and should not be used, and how any decisions relating to AI tools should be documented.
- Think critically. Think critically at each stage – do not allow hype or excitement to detract from your decision-making processes, or the normal steps you would take to check a software product before you implement it.
We can work with you to manage the risks around implementing AI in your charity, and ensure you have the correct policies and procedures in place. If you have any questions, please get in touch.
The material in this article is provided for guidance and general information only and is not intended to constitute legal or other professional advice upon which you should rely. In particular, the information should not be used as a substitute for a full and proper consultation with a suitably qualified professional. Please do contact the Bates Wells team if you require further advice or information about management training which we offer.