The social impact sector is failing by funding outdated solutions rather than embracing transformative AI technologies. Many funders continue to support incremental changes and basic AI upskilling, which is insufficient for the fundamental shifts AI represents. This approach neglects the need to build AI-native organizations capable of leveraging AI for true impact. Communities suffer when funding is misdirected from genuine innovation. Current AI strategies often focus on surface-level tool adoption rather than a deeper organizational mindset shift. Organizations are being equipped with outdated tools to address complex, AI-driven future challenges. The sector's tendency to reward safe proposals hinders radical change. Examples of successful AI-native projects demonstrate the potential for accessible, human-centered solutions when AI is integrated fundamentally. Funders must shift from supporting cosmetic AI add-ons to investing in transformative, AI-native organizations. This requires backing entities willing to rethink their entire operational models to achieve better outcomes. The future of social impact lies in AI-native, collaborative organizations focused on measurable results, not just activities. The real barrier to progress is an organization's ability to disrupt itself before the world does. Funders should support those prepared for this disruption, accepting potential failures as part of the process. The sector needs action and funding for disruptors, not more frameworks or discussions.
fastcompany.com
fastcompany.com
