The National Lottery Community Fund (NLCF) has said it will not reject applications from charities that have used artificial intelligence (AI) tools.
With the support of external experts, NLCF has developed guidelines on how applicants can use AI when applying for funding.
While the NLCF will consider AI-assisted applications, it has warned charities that the technology’s tools do not help tell the unique story of their communities.
NLCF recommended that charities personalise their applications by editing AI-generated content to reflect their own experience and needs.
It warned applicants not to use AI-suggested budgets without reviewing them, as it will assess applications based on budget planning and value for money.
The funder also encouraged applicants to show community impact and include insights from their communities.
Risks and cautions
NLCF’s guidance recommends that applicants look out for inaccuracies as AI can generate incorrect or misleading information.
It also suggests that applicants who use AI should beware of their data as some AI tools, especially free ones, may store users’ data, hence putting applicants and their communities’ information at risk.
When including charities’ data into AI tools, applicants should ensure that they do so in compliance with relevant legislation, and where personal information is used, applicants should refer to the Information Commissioner’s Office for guidance on AI and data protection.
It also states that AI tools require large amounts of energy and fresh water to power their data centres, for example, estimates suggest that ChatGPT consumes between 50 and 90 times more energy per query than a conventional search.
It recommends that applicants should use AI mindfully, and only use AI where it will clearly help them or significantly improve the quality of their applications.
10 principles
In addition to the guidelines for applicants, NLCF also set out 10 principles on how it will use AI to enhance its operations.
These principles include ensuring that there is always a human behind every AI usage, being accountable for all the work NLCF does when it uses AI, sharing its learning from its AI experiments, making sure that its use of AI is inclusive and avoids discrimination and being transparent on how it uses AI internally and externally.
It will regularly monitor its AI tools for vulnerabilities, collect only the necessary data for AI systems and ensure it is stored securely and convey and secure clear and informed consent from users before their data is used by AI systems.
NLCF will host a free online event on 11 March to share AI learning and encourage collaboration across the sector.
‘AI can be a powerful force for good’
Sarah Watson, NLCF head of innovation, said: “AI is set to be a gamechanger for charities and community groups, helping them to free up time to focus on supporting communities, and to think about bigger questions such as how we address the challenges facing society today.
“It has transformative potential for us as a funder and could free up time for us to focus on work that is uniquely human, such as listening to communities and our grant holders.
“Equity and fairness are at the heart of everything we do, and we believe that if deployed in the right way, AI can be a powerful force for good.”
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