AI offers charities the potential for significant efficiency gains. These include automating administrative tasks, improving service delivery, and enhancing fundraising efforts (see part 1).

However, the adoption of AI also exposes charities to a range of legal and ethical hazards too. Key risks include:

• data-protection breaches, which can compromise sensitive beneficiary information
• discriminatory outputs that may inadvertently reinforce bias or inequality
• infringement of third-party intellectual property rights through the use of unlicensed data or tools
• lack of transparency in AI decision-making processes
• the risk of regulatory non-compliance as new laws emerge.

To address these challenges, charities should take a number of steps. They should implement robust governance frameworks and conduct thorough impact assessments before deploying AI systems. It is also important to secure appropriate contractual protections with technology providers and ensure staff receive comprehensive training on AI risks and responsibilities. Maintaining meaningful human oversight is essential to safeguard both beneficiaries and organisational reputation, especially as UK and EU AI regulations become increasingly stringent.

Read the full article on the HCR Law website to identify and reduce the legal risks.

If you need advice, contact me at +44 20 3824 9748 or fjennings@hcrlaw.com.