Philanthropy Grapples with AI's Impact on Education and Workforce

Grantmakers face tough choices as AI disrupts traditional STEM programs and job roles

Jan. 27, 2026 at 3:23pm

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As artificial intelligence (AI) transforms education and the workforce, philanthropic leaders are rethinking their grantmaking strategies to ensure AI benefits students, workers, and communities. Funders who previously invested heavily in STEM and coding programs now face an environment where AI is eliminating many of those roles. In response, grantmakers are seeking to equip students and workers with more adaptable skill sets focused on decision-making, critical thinking, and lifelong learning. Leading foundations like Lumina and the James Irvine Foundation are also exploring ways to protect vulnerable workers, advocate for AI governance policies, and support real-world experimentation with ethical AI applications.

Why it matters

The rise of AI is forcing a major rethinking of philanthropic priorities in education and workforce development. Grantmakers who poured millions into STEM and coding programs now confront an environment where AI is automating many of those jobs, raising questions about the long-term impact on students, workers, and communities. Philanthropy must adapt its strategies to ensure AI benefits the public good rather than exacerbating existing inequities.

The details

Faced with the transformative impact of AI, education and workforce development grantmakers are pursuing several key strategies: Equipping students with 'durable skills' like decision-making, critical thinking, and adaptability that remain relevant as technology evolves; Partnering with the private sector to keep pace with AI innovations in areas like personalized learning and student support; Advocating for policies that protect the interests of students, educators, and low-wage workers as AI reshapes the labor market. Funders are also increasing support for real-world experimentation with ethical AI applications through pilot programs and early-stage investments.

  • In 2024, the James Irvine Foundation launched a 'cross-portfolio AI exploration' with targeted grantmaking.
  • In 2025, Irvine grantees helped shape new AI transparency, privacy, and civil rights rules in California.
  • In 2026, Irvine will expand its focus on strengthening California's workforce ecosystem response to AI-driven shifts.

The players

Lumina Foundation

A national foundation working to increase the proportion of adults with college degrees or other credentials to 75% by 2040. Lumina has invested $1.5 million in grants exploring the effects of AI on education, work, and democracy.

James Irvine Foundation

A California-based foundation committed to boosting economic mobility for low-income workers. Irvine has made grants to advance equitable AI governance, support worker-centered AI initiatives, and strengthen the state's workforce ecosystem response to AI-driven shifts.

Alliance for Decision Education

A national nonprofit focused on equipping students with decision-making skills to support career readiness.

Project Lead the Way

A nonprofit providing STEM curriculum for pre-K through 12 students.

VEX Robotics

A private company that partners with the Robotics Education & Competition Foundation to teach students 'durable skills' like communication, iterative design, and systems thinking.

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What they’re saying

“We don't know the answers to some of AI's most pressing effects — we barely know the questions. But philanthropy must ensure that the concerns of workers, students and families remain centered as we craft our AI future.”

— Jamie Merisotis, President and CEO, Lumina Foundation

“The lesson from learning to code isn't that 'coding was a bad bet,' or that philanthropy backed the wrong skill. Instead, it is that 'a moving target was treated like a fixed target' and workforce readiness was framed too narrowly.”

— Katie Minihan, Executive Vice President and Chief Impact Officer, Project Lead the Way

“We're seeing strong interest in backing ethical, human-centered AI and a growing willingness to fund pilots, research and experimentation. Because so much of this technology is new and untested, grantmakers are prioritizing learning and evidence-building over immediate scale.”

— Yigal Kerszenbaum, Founding Managing Partner, JFFVentures

“Both the technology and the policies around AI are still taking form, giving us a chance to influence how AI affects economic power before norms become harder to change. It's critical we act now.”

— Don Howard, President and CEO, James Irvine Foundation

What’s next

The James Irvine Foundation will expand its focus on strengthening California's workforce ecosystem response to AI-driven shifts in 2026, building on its Better Careers initiative to invest in workforce infrastructure, adaptive capacity, and the inclusion of worker voice.

The takeaway

As AI transforms education and the job market, philanthropy must adapt its grantmaking strategies to ensure these technologies benefit students, workers, and communities rather than exacerbating existing inequities. Key priorities include equipping people with adaptable skills, partnering with the private sector, advocating for protective policies, and supporting real-world experimentation with ethical AI applications.