Beware the “Slop”: AI’s Hidden Risks for Charities and NFPs
By Cameron A. Axford and Martin U. Wissmath May 2025 Charity & NFP Law Update
Published on May 29, 2025
The rise of generative artificial intelligence has brought compelling opportunities for Canada’s charitable and not-for-profit (NFP) sector. From streamlining administrative tasks to producing first drafts of policy documents or grant applications, AI tools are becoming increasingly embedded in day-to-day operations. But as adoption grows, so does a largely unexamined risk: the creeping influence of what some commentators now call “AI slop.” “AI slop” is shorthand for the low-quality, error-prone, or misleading content generated by artificial intelligence systems – generally when those systems are used without oversight, fact-checking, or editing. The term has been used to describe everything from articles filled with hallucinated facts, to AI-generated code riddled with bugs, to quickly produced digital images. This content may look polished and professional at first glance, but its substance often lacks accuracy, nuance, or truth. Worse still, the speed and scale at which AI systems can produce such material can flood decision-makers with volumes of superficially plausible but fundamentally unreliable information. In short, AI slop is content that seems helpful but could undermine organizational integrity if relied upon. While AI slop poses risks across all sectors, charities and NFPs face a unique set of vulnerabilities. Mission-driven mandates mean that decisions are often value-informed, sensitive, or tailored to complex social and legal contexts. Generic, AI-generated language in mission statements may oversimplify or misrepresent key principles. Resource constraints might tempt organizations to over-rely on AI tools as replacements rather than supplements to human expertise, especially in policy drafting, advocacy, or strategic planning, and high expectations from donors, regulators, and the public leave little room for missteps. A policy based on hallucinated legal standards, or a grant proposal built on fabricated statistics, can severely damage credibility. In addition, governance implications arise when boards rely on AI-generated briefings or planning materials without a clear understanding of the source, validity, or review process behind the content. AI slop introduces not only operational inefficiencies but also potential legal, ethical, and reputational risks – particularly if it makes its way into decision-making at the leadership level. AI-generated content is not always labelled or obvious, especially when shared second-hand between departments or sourced from third-party consultants. It can appear in a range of organizational documents. For example, HR or privacy policies generated by AI may contain outdated, jurisdictionally incorrect, or legally dubious provisions. Strategic plans drafted with AI assistance might include plausible-sounding but vague goals and performance indicators that lack real alignment with the organization’s objectives. Grant applications and reports may be populated with AI-generated needs assessments or outcome metrics that include fabricated data or unverifiable claims. Similarly, advocacy materials based on AI summaries of legislation or court decisions risk introducing factual inaccuracies that lead to faulty assumptions. In each case, the content may appear legitimate and helpful at first glance – but its underlying quality must be assessed. Charities and NFPs do not need to abandon AI altogether – but they do need to use it wisely. Several practical measures can help to reduce risk as outlined below:
Boards of directors, in particular, should take a proactive role in overseeing AI usage within their organizations. This includes asking whether AI tools are being used in mission-critical functions, such as donor engagement, volunteer management, program design, and financial oversight, ensuring management has adopted appropriate safeguards and policies, and including digital literacy – especially AI literacy – in board development. In the same way boards would not accept financial statements or legal opinions without understanding their source and validation, they should not accept AI-generated materials at face value. AI slop is not just a tech problem – it is a governance challenge. As generative artificial intelligence tools become more prevalent in Canada’s charitable and not-for-profit landscape, organizations must take care to preserve the quality, accuracy, and ethical integrity of their work. Used responsibly, AI can be a valuable tool. However, if charities rely on unverified outputs, they risk allowing “slop” to shape their policies, decisions, and even their missions. The solution is not to reject the technology, along with the opportunities it presents, but to embrace it with caution and discernment. |