Smarty Grants is getting smarter with the way it uses artificial intelligence

As artificial intelligence reshapes the way grants are managed, SmartyGrants has committed to adopting the technology in a way that is ethical and secure and boosts the effectiveness of grantmakers.

Group managing director Denis Moriarty said the organisation was adopting AI tools in a strategic way that preserved the integrity of client data and in response to growing calls from governments and other users for AI-powered tools that could be trusted and integrated into existing systems.

He said the organisation’s new AI strategy was focused on areas where AI could “solve real problems for clients”. The strategy was being refined by a team of data scientists, specialist developers and experienced grantmakers familiar with government and corporate processes.

The strategy builds on existing work by SmartyGrants and its related Our Community group of social enterprises, all of which work with the community, government and philanthropic sectors.

For example, the Funding Centre grants database – part of the Our Community group – last year rolled out the Drafter AI tool, which helps not-for-profits apply for grants. The system is tailored for grantseekers by experts in the field, and all of its data is held in Australia.

Unlike general-purpose AI chatbots, Drafter draws only on the information supplied by applicants. It applies best-practice grantwriting principles to generate draft applications ready for polishing by humans.

SmartyGrants’ CLASSIEfier – a machine-learning tool that classifies grants and related records according to the CLASSIE taxonomy – has powered the Australian Charities and Not-for-profits Commission’s (ACNC’s) official charity register since 2022.

The widely adopted Outcomes Engine – which is used to tracks the social impact of grants – also underpins the strategy.

Moriarty said future AI tools could help grantmakers summarise complex applications or submissions, assist with assessment, identify anomalies or compliance breaches, analyse large datasets, and improve reporting and program evaluation.

“We’re here to support best-practice grantmaking, and that includes a considered rollout of artificial intelligence,” Moriarty said.

He said unlike some big tech companies that are offloading staff, SmartyGrants planned to employ more specialists to fine-tune the organisation’s artificial intelligence work as it expanded its system in the United Kingdom, Europe and Canada.

“We’ve seen some of the world’s biggest tech companies lay off developers in this rush to adopt artificial intelligence. We think that’s a mistake because our staff are our greatest asset, and in a world of AI, it is good human judgements that will be critical.”

Moriarty said with grantmaking facing high levels of scrutiny from governments, the media and independent audits, platforms must support robust governance, including fair and transparent processes.

“As AI becomes embedded in decision-support tools, maintaining clear auditability and human accountability and being able to consistently follow government and other client protocols will be vital,” Moriarty said.

“The future of artificial intelligence may be uncertain, but whatever happens, we will continue to build on our unique and trusted infrastructure, deep grantmaking expertise and strong sector relationships, which we have established not only through SmartyGrants but also through our other enterprises, such as the Institute of Community Directors Australia, GiveNow and Our Community House.”

More information

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