Introduction
Did you know that up to 30% of humanitarian funds are often consumed by administrative overhead, particularly donor reporting? In a world where crises are escalating and resources are increasingly limited, every dollar counts. Imagine if a significant portion of these administrative costs could be redirected to frontline activities—how much more impact could we create? This was a topic discussed at our recent AI in Aid informal hangout meeting, and so following up I have attempted to share my thoughts on the topic to inspire debate.
Artificial Intelligence (AI) encompasses a range of technologies, including machine learning, natural language processing, and automation, all of which hold promise for revolutionizing how humanitarian organizations operate. While the private sector has long harnessed Artificial Intelligence (AI) to streamline operations, reduce costs, and enhance efficiency, the humanitarian sector is only beginning to tap into these transformative technologies. Embracing AI as the potential to alleviate administrative burdens, allowing organizations to maximize the reach and effectiveness of every donated dollar.
The Challenge: The Administrative Burden of Grant Management
Grant management is the lifeblood of many humanitarian organizations, enabling them to secure essential funding and deliver critical aid. However, this process is often complex and time-consuming. Managing multiple funding sources requires teams to:
- Ensure compliance with diverse donor regulations
- Track financial allocations meticulously
- Produce detailed and timely reports
These tasks divert valuable time and resources away from the core mission of delivering aid and support to those in need, and require dedicated experts to do so, bias funding streams to existing and larger international organisations.
Agitation: Wasting Valuable Time and Resources
Many humanitarian workers find themselves bogged down by administrative tasks, which significantly reduces their capacity to deliver aid effectively. The inefficiencies arise from:
- Manual Compliance Checking: Reviewing proposals and reports against varying donor requirements is labor-intensive and error-prone.
- Reporting Overload: Compiling reports from multiple systems while adhering to strict donor guidelines consumes substantial time.
- Funding Opportunity Identification: Manually searching for and evaluating new funding opportunities is inefficient and may lead to missed prospects.
These administrative burdens not only drain resources but also diminish the overall impact of humanitarian efforts.
Solution: AI-Driven Grant Management for Streamlined Efficiency
AI offers a transformative solution to the administrative challenges faced by humanitarian organizations. By integrating AI into grant management, organizations can:
- Free Up Time: Automate repetitive tasks to allow staff to focus on mission-critical activities.
- Reduce Errors: Enhance accuracy in compliance and reporting to maintain donor trust.
- Optimize Resource Allocation: Use data-driven insights to allocate resources more effectively and identify new funding opportunities.
Below, we explore specific areas where AI can drive efficiency, supported by real-world examples.
1. Time-Consuming Compliance Checks
The Challenge
Ensuring that every proposal and report complies with donor-specific requirements is labor-intensive and susceptible to errors. Non-compliance can lead to:
- Rejected proposals
- Missed funding opportunities
- Reputational damage during audits
Agitation: The Cost of Non-Compliance
Errors in compliance not only jeopardize current funding but can also hinder future support from donors, undermining the sustainability of humanitarian projects.
Solution: Intelligent Compliance Checking
AI can automate compliance checks using Natural Language Processing (NLP) algorithms to scan proposals and reports against donor criteria, ensuring accuracy and reducing manual review time.
Real-World Example: KPMG’s KymChat is an AI-driven compliance assistant that supports organizations by automating regulatory compliance and risk management. This tool identifies regulatory obligations, analyzes gaps, and assesses control effectiveness at scale. Similarly, in the humanitarian sector, AI-powered platforms can:
- Analyze donor requirements automatically
- Map policies to grant obligations
- Ensure compliance with donor-specific guidelines
Example Workflow:
- Upload the Draft Proposal: The user uploads the proposal into the AI system.
- AI Scans for Compliance: The AI tool reviews the document against donor-specific criteria.
- Flagging and Suggestions: The system flags non-compliant sections and suggests corrections.
- Human Review: A staff member makes final adjustments and submits the proposal with confidence.
Impact: By leveraging AI for compliance checks, humanitarian organizations can reduce manual compliance, minimize errors, and increase the likelihood of funding approval.
2. Burden of Manual Report Generation
The Challenge
Donors require detailed reports outlining the impact and outcomes of funded projects. Manually compiling these reports involves:
- Aggregating data from multiple systems
- Ensuring adherence to style guides
- Checking data consistency across sections
- Maintaining a consistent tone throughout the document
This process is not only time-consuming but also increases the risk of inconsistencies and errors.
Agitation: The Cost of Inconsistent Reporting
The burden of manual reporting can lead to:
- Delayed Project Activities: Time spent on report generation takes away from mission-critical tasks.
- Donor Dissatisfaction: Incomplete or inconsistent reports can erode trust and harm donor relations.
- Reputational Risks: Errors or delays in reporting can damage an organization’s credibility.
Solution: AI-Powered Tools for Streamlined Report Review
AI-powered tools can automate complex review tasks, ensuring reports are accurate, consistent, and compliant with donor requirements. These tools can:
- Check Data Consistency: Automatically verify that numbers in narratives match annexes.
- Enforce Style Guides: Maintain a unified tone and adhere to donor-specific formatting.
- Validate Financial Data: Flag potential discrepancies for review.
- Generate Draft Reports: Create first drafts in donor-preferred formats for human refinement.
Real-World Example: U UNICEF’s AI-driven quality assurance tool, developed in collaboration with UNESCWA, streamlines the reporting process for UNICEF’s End-Year Summary Narratives (EYSN). This tool:
- Scans Draft Reports: Ensures compliance with reporting guidelines.
- Flags Reputational Risks: Identifies language that may pose reputational risks.
- Performs Editorial Checks: Enhances the overall quality and consistency of reports.
Introduced during the 2021 reporting period, this tool helped UNICEF improve report quality and consistency, saving valuable time for country offices and safeguarding its public reputation.
Example Workflow:
- Upload the Draft Report: The user uploads the draft report into the AI-driven platform.
- AI Scans for Consistency and Compliance: The AI tool reviews data alignment, adherence to guidelines, and financial accuracy.
- Flagging Discrepancies: The system flags sections with inconsistencies or compliance issues and suggests corrections.
- Human Review and Finalization: A project manager or communications officer reviews and adjusts the flagged sections.
- Submit with Confidence: The finalized report is ready for submission, ensuring it meets all requirements and maintains high standards.
Impact: Implementing AI-powered reporting tools can save administrative time, enhance report accuracy, and improve donor satisfaction by ensuring timely and consistent submissions.
Addressing Potential Concerns and Ethical Considerations
While AI offers numerous benefits, organizations must navigate challenges such as initial investment, staff training, and data security. Additionally, ethical considerations around data privacy and algorithmic transparency are paramount. To implement AI responsibly:
- Invest in Training: Ensure staff are adequately trained to use AI tools effectively.
- Prioritize Data Security: Implement robust data protection measures to safeguard sensitive information.
- Ensure Transparency: Use AI systems that provide clear explanations for their decisions to maintain trust and accountability.
- Align with Humanitarian Values: Choose AI solutions that support and enhance the organization’s mission without compromising ethical standards.
Furthermore, as highlighted in the podcast “Three Ways to Stop Wasting Your Time and Become More Productive as a Humanitarian and International Development Leader,” it’s crucial to distinguish between busy work and impactful work. AI can help reduce low-value administrative tasks, allowing leaders to focus on high-impact activities that drive meaningful progress (Peace, 2024).
Conclusion: Embracing AI for a More Impactful Humanitarian Future
The integration of AI technologies into grant management and donor reporting represents a transformative shift for the humanitarian sector. By automating and optimizing administrative tasks, AI enables organizations to maximize the impact of every donated dollar, ensuring that more resources reach those in need.
Organizations can start by conducting a needs assessment to identify the most time-consuming administrative tasks and then explore AI solutions that offer seamless integration with their current software platforms
However, the successful adoption of AI requires a human-centered approach. AI should complement human expertise, enhancing decision-making without replacing the invaluable insights and empathy that humanitarian workers bring. It’s essential to address ethical considerations, uphold data privacy, and mitigate algorithmic biases to ensure that AI initiatives align with humanitarian values and protect vulnerable populations.
As the humanitarian landscape continues to evolve, responsible and collaborative AI adoption will be pivotal in shaping more effective, efficient, and impactful aid delivery. As AI technology continues to evolve, early adopters in the humanitarian sector will not only streamline their operations but also set benchmarks for global best practices, ultimately leading to more resilient and responsive aid delivery systems.
By fostering partnerships between technology innovators and humanitarian practitioners, sharing best practices, and prioritizing ethical standards, we can harness the full potential of AI to build a future where advanced technologies amplify our ability to serve those in need and tackle complex global challenges with greater efficacy.
Join the Conversation
Are you a humanitarian professional leveraging AI, or an AI developer passionate about social impact? How do you envision AI transforming the future of humanitarian aid, especially in areas like grant management and donor reporting? Share your insights, experiences, and success stories in the comments below. Let’s collaborate to harness AI’s potential and drive meaningful change in humanitarian action.
References
- Beduschi, A. (2022). Harnessing the potential of artificial intelligence for humanitarian action: Opportunities and risks. International Review of the Red Cross, 104(919), 1149-1169.
- Pizzi, M., Romanoff, M., & Engelhardt, T. (2021). AI for humanitarian action: Human rights and ethics. International Review of the Red Cross, 102(913), 145-180.
- Peace, T. (2024). Three Ways to Stop Wasting Your Time and Become More Productive as a Humanitarian and International Development Leader. Aid for Aid Workers Podcast. Retrieved from Aid for Aid Workers.
- Spencer, S.W. (2021). Humanitarian AI: The hype, the hope and the future. Network Paper, no. 85.
- Toplic, L. (2020). AI in the Humanitarian Sector. NetHope.
- MOAS (2024). AI for humanitarians – benefits, challenges, impact, ethics. Retrieved from AI for humanitarians – benefits, challenges, impact, ethics - MOAS
Edited for clarity with the assistance of AI, but the content, thoughts, and arguments are solely from the author.