We’re in the midst of an extraordinary wave of AI-fueled innovation, and no industry will remain untouched. It’s still early days in what promises to be a new technology super cycle. But for impact organizations such as nonprofits and government agencies that typically lag in tech adoption, this moment represents a priceless window of opportunity.
Unfortunately, the impact sector is still playing it safe with digital strategies that prioritize incremental modifications over decisive, daring action and technical innovation. These organizations are led by some of the smartest, most dedicated people I know, and they understand the trends. So why are they stuck in their approach to digital?
Impact organizations can’t afford to ignore AI
Before we jump into the reasons nonprofits and government agencies are playing it safe, let’s consider the stakes—and why time is of the essence when it comes to adopting AI.
First, AI is an impact multiplier. Leaning into the technology isn’t about adopting new tech for the sake of keeping current. It’s about radically amplifying your team’s capacity to focus on your core mission rather than rote administrative tasks.
Of course, AI isn’t a panacea. And there are serious ethical considerations that should be taken into account along the way. The best technology decisions are always values-aligned. But that doesn’t mean sidestepping it altogether.
Second, the moment to act is now. Over the coming years, the gap between organizations that figure out how to effectively adopt AI and those that don’t will widen exponentially. And in these early, chaotic days of technological innovation, AI tools and models are more affordable and accessible than ever before, creating a unique opportunity for even resource-strapped organizations to explore their potential. But realizing that potential requires thoughtful investment, even when entry costs seem low.
Finally, all organizations, from corporate giants to small nonprofits, are still figuring out how to adopt AI. In this rare moment of digital parity, you have the chance to position your organization at the front of the curve.
Five common mistakes that prevent digital risk-taking
There are several reasons non-profits and government agencies fail to take calculated risks in their digital strategies. These mistakes aren’t unique to the current moment. They are perennial stumbling blocks that hinder digital innovation for many well-intentioned organizations and agencies.
Here are five common mistakes that prevent digital risk-taking and how to solve them.
1. Underfunding digital investments
Nonprofits and government agencies are fundamentally resource constrained. Budgets in the public sector are never going to rival those available in the private sector.
But it’s also about resource allocation.
Digital is often still viewed as “just a communications tool” or overhead rather than a core investment that is fundamental to program delivery and organizational success. Digital projects are often viewed as a one-time line item rather than an ongoing investment that needs to be refined and improved over time. Further, investments are often made just in technology, but not in the people and processes that will ultimately make that technology successful.
Solution: Advocate for increased and sustained digital budgets by aligning digital strategies with organizational goals and measuring ROI over time.
2. Decision by committee
The prevalence of committee-driven decision-making and the pursuit of consensus often leads to watered-down strategies and missed opportunities. In a fast-paced digital environment, this approach can also slow down decision-making. The result is a strategy that is already outdated by the time it is implemented.
Solution: Streamline decision-making processes for digital initiatives. Implement agile methodologies and empower digital teams with greater autonomy.
3. Thinking you know your audience better than you do
Ask any public servant or nonprofit staffer, and they’ll tell you that what motivates them is helping people. But when it comes to knowing their audiences, many teams rely too heavily on what they think they know about key stakeholders. Worse, some organizations prioritize internal perspectives over the needs and preferences of their target audiences. This misalignment can lead to digital initiatives that fail to resonate or drive meaningful engagement.
Solution: Take the time to conduct direct user research and test products with the people they are designed to serve.
4. Fear of failure
The impact sector’s current funding models and budget structures create an environment where failure is taboo. This risk-averse culture stifles innovation and prevents organizations from learning through experimentation—a crucial element of digital success.
Solution: Focus funding proposals on outcomes, not activities, to allow flexibility in approach and create a culture of innovation that embraces calculated risks and learns from failures.
5. Analysis paralysis
When confronted with thorny problems like AI adoption, many organizations hang back because they are waiting for the “just right” moment or a critical mass of decisive information to make a move. In the wildly fast-moving world of AI, this mindset doesn’t work. Learning by doing is the best course of action. Experimentation and prototyping are the name of the game.
Solution: Empower your team to experiment with AI tools. Provide flexible guidelines that ensure data security and values alignment without stifling creativity.
AI is here to stay, and it’s indelibly reshaping the digital landscape. For risk-averse impact organizations, avoiding it is the riskiest strategy of all.
Elisabeth Bradley is CEO of Forum One.
