Regulator warns charities to be careful with data when using AI

Charity

Charities must ensure they take extra care around data security when using artificial intelligence tools, the Charity Commission has warned. 

In a blog post published today, Paul Latham, director of communications and policy at the regulator, says issues can arise when AI is put to use directly in charity operations and charities might not be complying with their duties if they rely solely on AI advice to make critical decisions without checking accuracy independently.

He says trustees remain responsible for decision-making and “it is vital this process is not delegated to AI or based on AI-generated content alone”.

Latham says charities must use AI “responsibly in a way that furthers your charity’s purposes”. 

He says the regulator expects trustees to ensure “human oversight” is in place to prevent material errors arising from the use of AI tools. 

“AI is still in its infancy in terms of safety and potential and should be used responsibly,” he says. 

Latham also warns about the possible risks to data if charities want to use AI to process it. 

“Some AI tools handle data in less secure ways than others and [charities] will need to understand this in [their] own circumstances.

“Charities with beneficiaries who might be at higher risk, such as children, or who hold sensitive data like medical information, will need to be particularly mindful of the level of risk.”

Latham writes that charities should also consider external risks and reputational damage arising from the “misuse and recirculation of AI, such as fake news or deepfakes (AI-generated images)”.

The 2023 Charity Digital Skills Report found 35 per cent of charities were already using AI for certain tasks and a further 26 per cent planned to in the future.

Gerald Oppenheim, chief executive of the Fundraising Regulator, previously said there will be challenges in “spotting bad actors” using AI.

Oppenheim said these were important challenges both in terms of “maintaining public trust and confidence in the way that charities fundraise and for charities themselves”.

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