Artificial intelligence is transforming every sector, including philanthropy. As foundations begin incorporating this technology into their giving workflows, it’s crucial to consider the impact of responsible AI for grantmakers.
AI’s greatest promise is the time it gives back to people. For grantmakers, that means fewer hours spent on data entry and more time strengthening relationships, supporting innovation, and investing in community impact.
Funders aren’t the only ones turning to AI. Many grantseekers now use it to streamline their grant applications, leading review teams to sift through more submissions than ever before. While AI promises speed, funders should be aware of its limitations to avoid eroding trust or introducing harmful biases. Responsible grantmaking matters.
Why responsible AI matters in philanthropy
Grantmaking helps shape the local community. Every funding decision has the potential to drive meaningful change. For funders, even operational choices, such as improving internal workflows, can have a significant impact.
In 2023, 65% of foundation funders chose to streamline or enhance their grant application and approval processes. AI is now supporting many of these improvements. As adoption grows, responsible use becomes essential.
While AI offers remarkable benefits, it also carries risk. Because artificial intelligence is only as good as the data it’s trained on, any bias or error within that data can influence decisions. Left unchecked, those inaccuracies can erode trust and weaken fairness in the review process.
At Foundant, innovation should always serve transparency, inclusion, and better outcomes for everyone involved in philanthropy. Our commitment to responsible AI ensures grantmakers can embrace automation without ever compromising ethics, accuracy, or human judgment.
By embedding ethics into every workflow, funders can harness innovation responsibly.
How secure AI summaries support grantmakers
A common challenge among grantmaking teams is the long application review and limited time. Approval can take one to six months, or even longer, before a grantseeker is handed a check.
For staff, long review times, especially without automated processes, mean:
- Manual data entry
- Managing outdated spreadsheets
- Tracking approval signatures
As applications increase and priorities compete for attention, staff capacity stretches thin. Funding cycles slow down just as community needs rise.
AI-powered grants management software can alleviate many of the challenges of manual approvals and reviews.
For example, Foundant’s grant management software quickly generates AI summaries of accepted applications. These secure AI summaries allow reviewers to quickly understand key insights instead of spending hours parsing details while still maintaining access to full documentation.
The software provides a secure environment for generating and storing summaries. Reviewers can focus on evaluating impact rather than managing paperwork, and they can be at ease knowing their data is safe.
Humans in the loop: Safeguarding fairness and trust
AI is a valuable assistant, but it should never replace human insight. Responsible AI keeps people at the center of decision-making throughout the grant lifecycle.
Foundant’s approach to AI in grantmaking is simple.
AI automates some processes, but staff have the final say to:
- Verify the accuracy of reports and applications
- Provide critical nuance
- Maintain inclusivity in each funding decision
Keeping humans at the center of our software helps organizations preserve empathy, fairness, and context. With this balance, grantmakers can move faster without losing the values-driven approach that often defines philanthropy.
For deeper insights into how foundations are approaching this balance, explore How Foundations Are Using AI.
Keeping applicant data safe with responsible AI
Applicant data is one of a funder’s most valuable assets. Because of its value, maintaining its security becomes one of the most significant responsibilities. Yet, when organizations use generic or consumer-grade AI tools, they risk exposing or leaking confidential information.
For grantmakers, protecting applicant data is a matter of trust. Responsible AI solutions are designed with security in mind. Foundant’s configurable, philanthropy-focused systems protect sensitive applicant and grantee data at every stage of the grant lifecycle.
Our software is developed to align with recognized privacy and compliance standards, including:
- HIPAA
- GDPR
- Sector best practices
This commitment to compliance ensures that while AI helps manage volume, it never compromises integrity or confidentiality. By using secure grant management systems, organizations reduce risk and maintain the trust of all stakeholders.
Efficiency without losing human connection
Burnout is a growing concern across the philanthropic sector. According to the State of Nonprofits 2025, 41% of nonprofit staff members are concerned about being stretched too thin, with many citing the lack of time to celebrate wins or reflect on success.
AI can help by reducing repetitive, time-consuming administrative tasks. When staff reclaim that time, they can focus on meaningful engagement with applicants and communities. Those conversations spark innovation and drive lasting change.
This is the true promise of responsible AI in grantmaking. Foundations create meaningful connections, and communities benefit from lasting impact.
Foundant’s grant administration software supports grantmaking teams to create these connections. By reducing busywork, reviewers can focus on conversations, mentorship, and relationship-building that strengthen both the grantmaking process and local communities.
Key takeaways for grantmakers adopting AI
Responsible AI adoption is a process that requires transparency, training, and complete oversight.
Here are three guiding principles for funders considering adding AI to grantmaking:
- Start with secure workflows: Choose AI tools built specifically for philanthropy, where data stays within your system and remains protected.
- Keep humans involved: Use AI to support the expertise and empathy of reviewers, not replace it.
- Monitor and adjust: Continually assess how AI is impacting decision quality, equity, and applicant experience.
When implemented responsibly, AI supports the review process:
- Review applications faster
- Make decisions more fairly
- Increase transparency across data and reporting
Foundant’s commitment to responsible AI keeps humans at the center of all operations and processes.
Empowering philanthropy through responsible AI
As AI adoption continues to grow, its true promise in philanthropy lies in advancing the mission behind every grant. When applied thoughtfully, AI empowers funders to make data-driven, equitable, and compassionate decisions without being slowed down by manual work.
Foundant’s software for grantmakers prioritizes transparency, data security, and human oversight. Our solutions help organizations modernize their workflows without compromising ethics, empathy, or eroding stakeholder trust.
Philanthropy thrives on trust and connection. Foundant’s commitment to responsible innovation ensures that every advancement continues to serve people first.
Start a conversation with Foundant today to explore how responsible AI can support your mission and make grantmaking easier, safer, and more impactful.