AI and governance: what trustees need to know now

Artificial intelligence (AI) is no longer a future issue for charities – it’s already here. From drafting funding applications to analysing data and supporting service delivery, AI tools are quietly becoming embedded in day-to-day work across the sector.

For many boards, though, AI can still feel abstract, technical, or distant from core trustee responsibilities. That was one of the key themes at our recent NPC and Clothworkers’ Company event, led by Tim Cook, CEO and Founder of AIConfident. The discussion made one thing clear: trustees do not need to become AI experts, but they do need to recognise that AI is now a governance issue.

Trustees do not need to become AI experts, but they do need to recognise that AI is now a governance issue.

Below are four themes from the session and what they mean for trustees.

1. AI may already be in use without board oversight

One of the most striking insights from the discussion was the gap between perception and reality.

AI is often introduced informally:

• Staff experimenting with tools to save time
• Volunteers using AI to draft communications
• Teams adopting tools without a formal organisational strategy

That means AI use can develop without board visibility or oversight.

The result – AI use is often happening without board visibility or oversight.

This creates a risk, not necessarily because AI is inherently dangerous, but because it is being used without clear governance, shared understanding, or agreed boundaries.

For trustees, this shifts the starting point. The key question is no longer “should we adopt AI?” But rather, “Where is AI already being used, and how do we govern it well?”

A practical first step is simply to open the conversation. Trustees should ask:

• What tools are staff already using?
• What are they using them for?
• What risks or benefits have they noticed?

Without this baseline, it’s difficult to provide strategic direction or meaningful oversight.

2. The real challenge is balancing opportunity and risk

AI presents a classic trustee dilemma: weighing significant opportunity against significant risk.

On the opportunity side, AI can:

• Save staff time by automating repetitive tasks
• Improve productivity and efficiency
• Help organisations make better use of their data

For a sector facing rising demand and constrained resources, these benefits are hard to ignore.

But the risks are equally real. During the session, Tim highlighted several key concerns, including:

• Risks to data protection and privacy
• Bias and discrimination in outputs
• Inaccuracies or “hallucinations”
• Questions around ownership and intellectual property

These are not abstract risks. They have direct implications for trust, reputation, and the people charities serve.

The key takeaway isn’t to avoid AI, but to approach it strategically.

Trustees should be asking:

• Does this use of AI align with our mission?
• Are we clear about the risks and how we’re managing them?
• Do the benefits outweigh the potential harms?

This is familiar territory for boards. AI doesn’t introduce new responsibilities; it intensifies existing ones.

This is familiar territory for boards. AI doesn’t introduce new responsibilities; it intensifies existing ones.

3. Good governance starts with purpose, not technology

A recurring theme throughout the event was that AI should not be treated as a standalone issue.

It can be tempting to ask, “what should we be doing about AI?”

But a more useful starting point is, “What are we trying to achieve, and could AI help us do it better?”

In other words, trustees should consider AI through the lens of:

• Organisational strategy
• Mission and impact
• Existing priorities and constraints

This helps boards avoid two common pitfalls:

• Adopting AI because of hype or fear of ‘missing out’
• Focus too narrowly on tools, rather than outcomes

For trustees, this means keeping discussions grounded in purpose. They should ask:

• Where could AI add meaningful value?
• Where might it create unintended harm?
• What role should it play, if any, in our strategy?

AI is not a strategy in itself. It is a tool, and like any tool, its value depends on how and why it is used.

4. Trustees don’t need to be experts – but they do need to lead

A key concern raised during the event was capability. Many trustees and boards feel they lack the technical expertise to engage meaningfully with AI.

But trustees do not need deep technical knowledge to govern AI well. What they do need is:

• Curiosity – a willingness to ask questions and engage with the topic
• Judgement – to weigh risks, opportunities and trade-offs
• Oversight – ensuring the organisation is using AI responsibly

In practice, that might include:

• Ensuring there is a clear approach or policy for AI use
• Asking how decisions involving AI are reviewed and validated
• Understanding who is accountable for AI-related risks

In many ways, this mirrors other areas of governance. Trustees don’t need to be finance or legal experts – but they do need to ensure the organisation is managing those areas as well.

The same applies to AI.

In many ways, this mirrors other areas of governance. Trustees don’t need to be finance or legal experts – but they do need to ensure the organisation is managing those areas as well.

What trustees can do next

While AI can feel complex, the event highlighted some simple, practical starting points for boards:

• Start the conversation. Build a shared understanding of how AI is currently being used across the organisation.
• Take a use-case approach. Focus on specific examples, rather than trying to develop a comprehensive strategy all at once.
• Clarify responsibilities. Ensure it’s clear who is accountable for AI use, risk management, and quality assurance.
• Prioritise proportionate governance. Not every organisation needs complex frameworks – but every organisation needs basic oversight.
• Keep people at the centre. Consider how AI affects beneficiaries, staff, and wider communities – not just internal efficiency.

Looking ahead

AI is often described as transformative technology, and for charities, that transformation is already underway.

But the message from this session was not one of panic. It was about intentional leadership. Trustees do not need to have all the answers. They do need to ask the right questions, stay connected to purpose, and make sure their organisations are navigating AI thoughtfully and responsibly.

If boards can do that, they will be in a stronger position not only to manage risk but also to make good decisions about where AI can genuinely support their mission.

Watch NPC’s event, AI and governance.