Agentic AI and the Amplification of Legal Risk for Charities and NFPs

Published on

May 28, 2026

 

As charities and not-for-profits (NFPs) continue to explore the possibilities presented by artificial intelligence (AI) and integrate AI products into their workflows, much of the attention has focused on generative AI tools, including large language models (LLMs), that can draft text, summarize documents, or analyze information. However, a new phase of AI adoption is emerging: agentic AI. While the term is still developing, agentic AI generally refers to AI systems that can pursue a defined objective with a degree of autonomy, often referred to as “AI agents”. Instead of simply responding to a prompt, an AI agent may plan a course of action, interact with other software tools, make decisions, and complete multi-step tasks with limited human involvement. Put simply, agentic AI moves beyond producing outputs for a user to review; it can use those outputs, along with other tools and data, to take further action on the user’s behalf.

To read the balance of Charity & NFP Law Bulletin No. 537, please click here.