Artificial intelligence – what does it mean for foundations?
18 May 2026
Jim Cooke, ACF’s head of practice and learning, explores how foundations can harness the benefits of AI tools while addressing the challenges and risks they present.
ACF’s research has previously highlighted foundations’ cautious optimism about the emerging possibilities of AI.
Some were keen to explore operational efficiencies. Others hoped for improved insights from data. However, they expressed concerns about issues such as accuracy, bias, privacy and data security.
With these factors in mind, ACF members told us that a lack of clear guidelines was their biggest barrier to adopting AI tools.
We’ve listened – and responded. Our new guide to artificial intelligence was developed with input from some of our members who’ve already made progress with AI, as well as others who are just getting started.
It’s designed to help foundations understand and navigate the opportunities and challenges of this technology in their own contexts, informed by experience from their peers.
This blog explores some of the practical topics that our new guide covers in more depth.
How will AI affect your foundation’s mission?
Last week, I attended The National Lottery Community Fund’s ‘AI for Funders’ conference, where their CEO, David Knott, spelled out the scale of AI’s impact on our lives, and the challenge this poses for grant-makers: “AI is advancing at extraordinary speed, but society’s ability to understand, interpret and shape that change is not keeping pace. That is the wisdom gap we now have to confront.”
Like The National Lottery Community Fund, who have just launched a new programme to help communities shape the future of AI, other ACF members have also undertaken work on the benefits and harms of AI in their specific fields of interest. Trust for London’s focus on AI and poverty and Nuffield Foundation’s AI and education research are two examples.
Not all foundations will have the capacity to do this themselves. But they can learn from work shared by others and use this to better understand their own strategic context.
AI can also play a role in how foundations work towards their missions by supporting other charities. For example, the Charity Digital Skills Report has highlighted ways that funders can help charities with their digital needs – which, for some, might include AI adoption.
Experimentation and learning
An immediate practical question for many foundations is whether and how they might use AI within their own work. This often begins with a period of experimentation and learning.
Putting in place some simple guardrails early on can help individuals and teams to experiment responsibly with AI, and encourage them to share what they learn.
For example, it’s important to be clear which AI tools are safe to use with different types of information. There are lots of free tools available, which can make it easy to get started and explore possible uses – but bear in mind that these typically offer less control over your data than paid-for versions.
Discussing AI with your peers is a great way to learn about which tools other foundations are using and how. The AI for grantmakers group convened by CAST has generated a wealth of insights, including a library of AI experiments featuring examples of AI use by a wide range of charities, which can be filtered to show examples from funders.
Developing an AI policy for your foundation
If AI use starts to become more established practice within your foundation, it will be increasingly important to have clear policies in place.
Again, foundations can learn a lot from others who have already made progress on this. For example, The National Lottery Community Foundation’ s AI principles are a useful starting point for thinking through how AI can be used safely, responsibly and in line with your foundation’s mission and values.
AI is rapidly evolving, so policies will need to be regularly reviewed as its potential uses – and their implications – change over time.
Providing guidance for applicants and grant-holders
Many charities are now using AI tools to support their work. For some, this includes using AI when applying for or reporting on grants. Recognising this, many foundations now publish guidance for applicants on AI use: Northamptonshire Community Foundation’s statement is a good example.
Foundations’ guidance typically acknowledges that there may be benefits to applicants using AI, such as saving time or reducing language barriers. They also highlight common areas of concern and the need for caution. For example, over the accuracy of AI-generated content and the importance of protecting personal data.
If asking grant applicants about their use of AI, tell them clearly what you plan to do with this information and whether it will affect the assessment process.
Applicants may also want to know if your foundation is using AI to assess their application. Transparency about this (even if you are not using AI) can be reassuring and increase trust.
Get started – or consider your next steps
For ACF members, our new guide to artificial intelligence (login required) is designed to help you consider the key questions you may have about AI and determine what action you might take.
It includes lots of practical examples of our members’ current work and recommended resources for getting started or exploring issues in more depth.
It’s part of a collection of technology resources for foundations that also include:
- A guide to cyber security
- ACF’s work with our corporate partner, Blackbaud
- Links to other sources of digital guidance for the charity sector.
We’ve also got several events coming up next month on technology and data. These offer great opportunities to learn from experts and explore practical questions with your foundation peers:
These events are open to all UK foundations and grant-making charities, with discounted prices for ACF members.
If you work for a UK trust, foundation or other grant-making charity that hasn’t yet joined ACF, find out more about membership.
Join us