During our 50th Italian Pro Bono Roundtable and 7th Italian Pro Bono Day, we hosted the seminar “The Third Sector in the Age of AI: The Role of Organized Civil Society, Between Risks and Opportunities.” Keynote Speaker Giusella Finocchiaro, Professor of Private Law and Internet Law at the University of Bologna and author of “Artificial Intelligence. What Rules?” was followed by a debate with panelists Federico Fusco (Partner, Dentons), Chiara Giovannini (Deputy Director General, ANEC), Gianluca Sgueo (Professor of Digital Democracy & Public Spaces, SciencesPo), Giovanni Carotenuto (President, Pro Bono Italia), Giuseppe Catalano (President, AIGI), Stefano da Empoli (President, I-Com), and Laura Ferrari (Policy Advisor, The Good Lobby).
We interviewed Lawyer Federico Fusco, Board Member of Pro Bono Italia ETS, for an overview of legislation related to Artificial Intelligence, its risks, and benefits for the Third Sector.
In the medium and long term, what is your forecast on the benefits that AI will have on the Third Sector?
In the Third Sector, as in all other sectors, Artificial Intelligence will have, and is already having, a significant impact, including improving the efficiency of non-profit organizations that, for example, have to manage cases of numerous individuals needing assistance.
Taking the example I am familiar with, Pro Bono Italia manages a Clearing House that receives and filters numerous pro bono legal assistance requests, which are then published on a digital platform for lawyers in the network to take on. The selection and publication of these cases and assistance requests is a complex job that requires various skills. It takes time, and certainly doing it with Artificial Intelligence systems would be of great help, and this is the direction in which we want to go.
This is just one example of a possible application of Artificial Intelligence systems that can improve the efficiency and therefore the impact that non-profit organizations can have on society concerning their goals.
Do you see any significant risks for the Third Sector with the advent of AI?
Again, what applies to other sectors applies here too, and perhaps in this case, returning to the example I made earlier, the risk may lie primarily in the area of possible discrimination. When non-profit organizations that handle individual cases introduce automated or highly advanced AI systems into their activities, the risk is that if these systems are not adequately trained, they may make errors with potentially serious consequences in terms of discrimination.
For example, returning to the case of Pro Bono Italia, a case dismissed by the Clearing House because the AI system is unable to assess its merit based on the information provided could lead to an injustice. Then there is the reputational aspect: we have witnessed the phenomenon of greenwashing, which is still in full swing and has seen legislative intervention. Now we are beginning to see cases of AI washing, where the use of AI systems is flaunted by organizations, particularly businesses, in a deceptive, untruthful, and inappropriate manner, leading to consequences such as unfair competition, misleading advertising, and unlawful practices against consumers.
This risk is especially relevant for non-profit organizations that rely on their reputation for fundraising and other activities. It is crucial to be very careful when introducing AI systems not to boast about their use or beneficial effects in an allusive, inappropriate, or untruthful manner, possibly to appeal to potential donors. This is certainly a risk to be mindful of in the Third Sector.
What approach do you consider most appropriate for regulating the use of AI without inhibiting its potential, both generally and specifically for the Third Sector?
This is a very difficult question. We have seen the challenges and delays the European legislator faced in reaching a final version of the AI Act, the regulation on Artificial Intelligence. In this case, the approach was the so-called risk-based approach: AI models and systems were categorized based on their risk levels, with different regulations for each risk level, ranging from absolute prohibitions to transparency and information obligations.
This is a reasonable, plausible approach. It remains open to technological developments, and I do not see a particular need to consider or adopt different approaches specifically for the Third Sector. While there may be a desire to provide non-profit organizations with AI systems to support their activities, this cannot be done without acknowledging the risks these systems present, which are the same as those seen in the profit sector.
Do you or the organization you work for already use AI, for what purposes, and with what results?
I work for a large international law firm. There is, of course, a lot of talk about Artificial Intelligence because it is at the center of our clients’ interests, including large organizations and multinational companies, as well as each of us as citizens. AI can also make a significant contribution to the legal sector by improving processes and the work of individuals.
Lawyers, in general, and particularly in my firm, are adopting a cautious approach because our work involves the risk of exposing sensitive client data to AI systems. Therefore, on one hand, we conduct tests with available market systems within small groups of professionals and for selected pilot cases. On the other hand, we try to develop our systems that do not risk exposing the organization’s and its clients’ data. This applies at various levels of activity. Document automation is, of course, very relevant for lawyers, but so is project management. The areas where AI can intervene are numerous, even in the legal sector.
In your field, what are the most urgent needs for information and training on Artificial Intelligence?
Operationally, the same needs apply as in other sectors: the curiosity, the need, or the desire to rely on new technologies in an informed and conscious manner.
As lawyers, this applies to both my work within an international firm and the pro bono role the firm and I personally play, particularly for Pro Bono Italia. The need for training and information is about our activity because we need to be maximally informed and updated on technological developments and the approach that legislators and judges worldwide are taking towards these developments. This enables us to assist clients most appropriately and be always prepared with the latest news.
What contribution can organized civil society make in shaping an appropriate approach to the use of Artificial Intelligence?
Civil society always plays an important role when faced with epoch-making changes like a technological revolution, and this is no different. What organized civil society can and must do is put rights at the center.
The European legislator, which decided to adopt a risk-based approach to AI, took its first steps towards AI regulation based on the fundamental premise that it is necessary to protect individuals’ rights, particularly fundamental rights.
This is the chosen field for organized civil society, which will continue to move towards putting the protection of individuals at the center of the discussion. This is even more important for organizations operating in the Third Sector, which need to positively impact society and individuals and maintain their high moral profile and reputation.
