Determinants of AI Adoption in Nonprofit Organizations

Abstract

As generative artificial intelligence (GenAI) becomes more prevalent across all types of organizations, interest in adopting artificial intelligence (AI) tools by charitable nonprofit organizations, who are given 501(c)(3) tax-exempt status by the internal revenue service (IRS), is worthy of attention, given the potential for increased efficiency and raised ethical concerns in resource-drained economies. Guided by the Technology–Organization–Environment (TOE) framework, this study surveys Florida nonprofit organizations (n = 168) to explore if certain factors, such as the external environment, innovative culture, and leadership, influence decisions to adopt GenAI tools in nonprofit organizations. We supplement our survey findings with follow-up qualitative data from 14 nonprofit executive directors. Findings offer guidance to nonprofit leaders for assessing their organizations’ environment and innovative capacities when making decisions on GenAI adoption. Furthermore, there are broad implications for examining the potential of GenAI tools for mission fulfillment and more effective management of nonprofit organizations.