How Philanthropy Can Lead in Building Ethical AI for the Public Good

A computer generated image of the human brain drawn using data points.
Credit: Growtika on Unsplash

Philanthropy has long played an important role in providing initial funding for critical research, advocacy, and infrastructure to serve the greater public good. In 1956, the Rockefeller Foundation funded a five-week gathering of scientists and researchers called the Dartmouth Summer Research Project on Artificial Intelligence. Now recognized as the birthplace of the modern notion of “artificial intelligence,” that single grant may be the most consequential in the development of artificial intelligence (AI) (Rockefeller Archive Center, 2022).

It’s been seventy years since, and AI is now here to stay. Philanthropy cannot afford to be a passive observer but rather has a critical role in shaping the future of AI.

As governments around the globe struggle to keep pace with the advancements of AI, and create the necessary guardrails to address its risks, grantmakers have a unique obligation and a once-in-a-century opportunity to seize the moment and ensure AI serves the public good, advances equity, and strengthens the nonprofit sector rather than exacerbate existing disparities.

The Obligations and Opportunity for Grantmakers

Philanthropy’s goals are driven by a vision for greater justice and opportunity for all. The sector should use its influence and resources to steward ethical solutions, provide critical capital for community-informed innovations, and harness greater impact promised by AI—and funders must push for an AI sector that aligns with the greater social good.

“Philanthropy has a once-in-a-generation opportunity to push AI to fulfill its potential to deliver enormous benefits to society…”

By prioritizing ethical AI, building nonprofit capacity, and leveraging technology for impact, grantmakers can lead the charge in ensuring AI serves humanity—all of humanity, not just those that stand to win the race for market dominance.

Here are 10 considerations and examples from the field about how philanthropic organizations can take proactive steps to address the obligations and opportunities for grantmakers at this critical time:

  • Mitigate Bias and Harm
    AI systems are only as fair as the data and structures that shape them. Investments in research, training, and policies that ensure AI technologies do not reinforce systemic inequities are essential.

Funders should support nonprofit organizations that are working on algorithmic fairness, data ethics, and digital rights to ensure that AI systems don’t undermine common goals for justice and fairness. One such example comes from the Rockefeller Foundation, which has committed resources to combat bias in AI systems, including a $300,000 grant to Black in AI, a technology research organization addressing issues of discrimination toward people of color in AI facial recognition technology.

  • Ensure Nonprofit Sector Representation in AI Development
    The development of AI tools is largely driven by the private sector, often without input from social sector leaders. Funders can play a crucial role by supporting nonprofit participation in AI policy discussions, industry collaborations, and technology design processes to ensure that solutions align with community needs.

Launched in 2017, as a joint project with the MIT Media Lab and the Berkman Klein Center for Internet & Society at Harvard University, the Ethics and Governance of AI Initiative is a hybrid research effort and philanthropic fund that seeks to ensure that technologies of automation and machine learning are researched, developed, and deployed in a way that vindicate social values of fairness, human autonomy, and justice.

  • Support AI Literacy, Capacity, and Adoption
    Many nonprofits lack the resources and expertise to navigate AI’s complexities. Funders should invest in AI education for nonprofit leaders, ensuring they have the skills and knowledge to make informed decisions about AI adoption and advocacy.

Tools like the Technology Association of Grantmakers’ guide Responsible AI Adoption in Philanthropy can help organizations assess the ethical and equitable impact of AI initiatives. By adopting equity-centering frameworks for AI exploration, funders can ensure that equity considerations remain front and center in AI projects.

Grantmakers should also allocate funding to help nonprofits leverage AI for greater impact, ensuring they have access to tools and expertise that enhance their mission-driven work.

“AI is here to stay, and philanthropy cannot afford to be a passive observer.”

  • Fund Research for Better Outcomes
    Investments in AI research can drive solutions to our most vexing social challenges, from climate change to public health. Philanthropy can accelerate progress by funding interdisciplinary research efforts. The AI for Health Institute at Washington University in St. Louis offers grants to bring together AI researchers and health investigators to forge new paths to solve significant health problems with advanced AI technologies.
  • Empower Nonprofits with AI
    AI can streamline nonprofit operations, automate administrative tasks, and improve service delivery. Grantmakers should support access to AI-powered tools for grantees, ensuring that organizations of all sizes—especially smaller grassroots groups—can benefit from these innovations.
  • Fund Efforts to Preserve Public Trust and Address Misinformation
    AI has the potential to spread misinformation at scale. Funders must support initiatives that strengthen media literacy, counteract disinformation, and uphold public trust in information ecosystems.
  • Fund Advocacy Efforts for Value-Aligned Guardrails
    Ensuring AI development aligns with ethical principles requires strong advocacy. Funders should support policy efforts that promote accountability, transparency, and justice in AI governance.
  • Fund and Create Private or Public, Nonprofit LLMs for the Sector
    Large language models (LLMs), tailored for nonprofit needs, can promote ethical AI use and prevent the overreliance on commercial AI tools. Philanthropy can lead the way in developing and sustaining such models. 
  • Enhance Philanthropic Decision-Making
    AI-powered analytics can help grantmakers make more data-driven, equitable funding decisions. From identifying funding gaps to predicting social impact, AI offers new ways to optimize resource allocation. Investing in ethical AI tools for philanthropy can improve transparency and effectiveness.

“Funders should support nonprofit organizations that are working on algorithmic fairness, data ethics, and digital rights…”

  • Fund AI for Public Good
    The social sector needs its own AI solutions—tools designed to advance human rights, climate action, and community well-being. Philanthropy can catalyze these efforts by funding mission-driven AI projects that prioritize ethics, accountability, and inclusivity over profit motives.

Philanthropy’s Opportunity in AI

These are but a few examples that illustrate how grantmakers can meet the moment we are in. As grantmakers seek to address society’s biggest challenges against the fast-evolving AI landscape, it is more important than ever to consider funding and advancing initiatives that align with their values.

As funders, we must also not forget our nonprofit partners. By fostering ethical AI development and utilization across the nonprofit sector, we may harness the promise of AI and navigate the perils or pitfalls posed by those organizations that lag behind the curve.

Philanthropy has a once-in-a-generation opportunity to push AI to fulfill its potential to deliver enormous benefits to society—will we answer the call?

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