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Back to "Community & Associations Newsletter - April 2023"


How charities and NFPs can benefit from the use of AI Technology

AI can provide charities and NFPs with greater insight into the patterns of their donation data by predicting likely behaviours from current and potential donors.

Without the use of AI, many organisations manually divide their donors by gift recency, frequency, and monetary value (also known as RFM segmentation). However, this approach can be time-consuming and inaccurate. AI on the other hand, has the capacity to generate content, analyse data, recommend algorithms to tailor to specific groups, and predict patterns on an automated basis.

However, as with any technology any charity must be aware of:

  • the size of the entity – is it worth investing in AI technology if the pool of data is relatively small?
  • that AI cannot completely replace humans who can extend empathy and determination
  • the use of AI to automate the analysis of data may result in data and security breaches.

It is important to note that AI is merely an aid to increase productivity and reduce operation costs.

Grace Brophy, Lawyer

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