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2 min read
The Transformative Power – and Perils – of AI for Not-for-Profit Community Services

In an era defined by rapid technological advancement, not-for-profit community service providers find themselves at a crossroads. Faced with increasing demand, limited resources, and growing administrative burdens, the sector is under pressure to do more with less.

Artificial Intelligence (AI) offers a transformative opportunity to help these organisations improve productivity, foster collaboration, and ultimately deliver better outcomes for the communities they serve. However, as with any tool, AI carries risks that must be navigated thoughtfully.

For many community service organisations the administrative burden of compliance and reporting, as well as the constant need to seek further funding through grant writing is becoming increasingly time-consuming. In a recent Forum and Podcast, we showcased to the sector opportunities for AI-driven automation tools to handle many of these functions, freeing up frontline workers to focus on what matters most: supporting people.

The big question is – by streamlining operations, can AI enable small teams to support more clients without sacrificing quality of care? And how do we harness the power of AI without risking the confidentiality and safety of client information?

Because despite its potential, AI is not without risks – especially for vulnerable populations and the organisations that support them. Community service providers often handle sensitive personal information. Improper use or breaches of AI systems could expose clients to harm or erode trust in services.

We know that 2/3 of all leaders and staff members in the sector are using AI, but only 1/3 of organisations have policies in place to provide boundaries for its use. Without clear governance frameworks, organisations may find themselves legally or ethically exposed.

In a recent Community Matters podcast, Emerging Technologies and Innovation Specialist Jagdeep Singh highlights that AI is not a silver bullet for the not-for-profit sector – but it is a powerful tool, one that can unlock significant value when implemented responsibly.

But community service providers need to be supported with funding, training, and ethical guidelines to adopt AI in ways that enhance their mission, not compromise it.

Podcast episode available at: Community Matters Podcast.


About the writer

Nicky Sloan is committed to working to build a fair and inclusive community where all people are valued and enabled to live rewarding lives. She is the CEO of Community Industry Group and has extensive experience across the community services industry. Her diverse work history also includes local government, marketing, the tertiary sector, the finance sector, and owning and running small businesses. She has extensive governance experience and is currently an Independent Non-Executive Director of Warrigal, a substantial not-for-profit specialising in the provision of services for older people; Chair of the Board of Wollongong Conservatorium of Music; and an Honorary Fellow of the University of Wollongong.

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