How Can Nonprofits Navigate the AI-Powered Future of Work: Thoughts on McKinsey’s Generative AI and the Future of Work Report
This July, new research came out from the McKinsey Global Institute that explores how trends like automation and AI could reshape the job landscape in the US by 2030. Specifically, McKinsey estimates that 30% of work activities could be automated in the next ten years and that roughly 12 million currently employed Americans may need to transition to new occupations as AI replaces jobs. I feel these projections may even underestimate AI’s potential impact, particularly on white-collar roles if capabilities continue advancing rapidly.
We also don’t know the full timeframe — could significant job losses occur before new jobs fully materialize?
McKinsey notes that workers without college degrees, women, minorities, and those in lower-wage jobs face the highest displacement risk from automation and AI.
The McKinsey report does a great job of generating a lot of data projecting what the effects of AI and automation on the workforce might be, but the advice on how to address these concerns, or get ahead of them, is, not surprisingly, extremely generalized. We don’t know to what extent generative AI could have even more impact on white-collar jobs than this report indicates if AI platform capabilities continue to advance rapidly.
This research got me thinking about the implications for the nonprofit workforce. Many nonprofit employees currently work in program management, client support, administrative, and fundraising roles that AI will likely transform. I already know several grant writers worried about how generative AI platforms could affect their jobs. Certainly every nonprofit will want tools to automate routine tasks like data entry and gift processing.
Given how technology-challenged, under-resourced, and risk-averse many non-profits are, I’m not confident that we’re at the place yet where non-profit leaders will be able to anticipate these issues, integrate them into their strategic planning, and understand how these shifts could affect hiring, retention, and training in the non-profit sector.
I particularly worry about smaller nonprofits and the challenges in competing for staffers who are experts in using AI skills in their roles.
What to do?
First of all, non-profit leaders should familiarize themselves with AI tools, especially generative AI platforms some of their staffers are probably already experimenting with–ChaptGPT, Claude, Bard, Dalle-E.
Secondly, leaders should spend some time making sure Board leadership and members are also aware of the ways AI platforms are beginning to shift how work is done, even in the non-profit sector.
Also, because there are very valid ethical concerns about using AI, leaders should be prepared to understand what these issues are and make sure that the tools they adopt won’t contradict their mission because of bias or inaccuracy. Creating opportunities to talk with staff and also hear and work with their concerns and questions about adding the use of generative AI to their workflow is essential.
The philanthropic sector recognizes both the opportunities and ethical complexities of AI. In a recent survey by the Technology Association of Grantmakers, over half of nonprofit professionals cited a desire for more education on AI ethics and responsible implementation. As one survey respondent noted, “The hype is real but so is the promise. ”
For non-profit leaders to prepare for the changes that integrating AI into the field will bring, centering ethical frameworks, stakeholder and board education and input, and budgeting for user support and training are essential. By anticipating how jobs and work will shift, non-profit leaders can get ahead of these changes, and, hopefully, manage them better.
This article first appeared on my blog and is part of a series on using AI in nonprofit work.
