How do I secure funding for AI Transformation?

'Tis the season for annual board meetings, annual budgets, and annual reviews. While many may look back at the accomplishments of 2024, affordable housing leaders are looking ahead to the transformation on the horizon: AI.

AI isn’t just a buzzword—it’s a game-changer for affordable housing. From streamlining operations to predicting problems before they occur to delivering better outcomes for residents, AI has the potential to solve some of the biggest challenges we face.

But here’s the reality: implementing AI requires a long-term commitment, both strategically and financially.

Convincing your team to approve 3–5 years of transformational funding means one thing: trust. Trust that AI will align with your mission, deliver measurable results, and create exponential 10x value. Here’s how The Strategic Edge partners with you to build that trust and get the green light for a transformational AI strategy.

Make It About Mission, Not Machines

Boards don’t care about the tech—they care about impact. AI must be framed as a tool to advance your mission, not as a new shiny object.

How We Position AI:

• Tie AI to Objectives & Key Results: Show how AI directly supports your organization’s objectives, whether it’s reducing operational costs, improving resident satisfaction, or expanding your portfolio. For example, predictive analytics could cut maintenance costs by 20% while increasing resident retention and available units by up to 8%.

• Focus on Equity: Demonstrate how AI strengthens your commitment to fairness and accessibility, such as using AI to identify underserved communities or optimize service delivery.

Prove It’s Worth 10X the Investment

AI is transformational—not incremental. To win support, you need to demonstrate its potential for exponential impact. Think 10X, not 10%, improvement in your growth or efficiency.

How We Position AI:

• Efficiency Gains: Model how AI can save significant time and money for your existing teams over this horizon. For instance, automating compliance reporting could free up 15-20% of staff capacity annually, allowing teams to focus on higher-value, more strategically-oriented tasks.

• Compounding Benefits: Highlight the long-term value of early AI investments. Scalable AI tools can drive increasing returns as they’re adopted across the organization.

• Real Numbers: Don’t talk in generalities. Outline the specific cost savings or growth opportunities AI will unlock over the next three to five years.

Build a Budget That Inspires Confidence

Boards need to see a clear, thoughtful plan for how AI dollars will be spent—and how those investments will pay off.

Key Budget Priorities for AI:

• Scalability First: Start with high-impact, high-feasibility tools like AI-enabled communication platforms or predictive maintenance systems. Budget for growth so these tools can expand across departments.

• Education and Change Management: Invest in training your staff to work alongside AI. A workforce that understands and trusts AI tools ensures adoption and maximizes ROI.

• Governance and Security: Budget for robust data protections and ethical oversight to prevent risks and reinforce trust with stakeholders and residents.

• Phased Approach: Break the investment into manageable phases with measurable milestones, such as completing a pilot program before full-scale rollout.

Be Ready to Measure and Mitigate

Boards want evidence—and reassurance. You need to show how success will be tracked and risks minimized.

How We Position AI:

• Clear Metrics: Define KPIs tied to AI initiatives, like reducing application processing times by 30% or improving portfolio investment performance by 5%.

• Pilot First: Propose starting with a pilot program to validate AI’s impact on a smaller scale before scaling up.

• Address Risks Head-On: Be proactive about potential challenges, like data privacy or algorithmic bias, and show the board how you’ll handle them. This could include bias audits, privacy safeguards, or vendor accountability measures.

Tell a Story That Inspires Action

Data matters, but stories move people. Help your board - and your team - envision what AI could mean for your organization in practical, human terms.

How We Position AI:

• Real Examples: Share success stories from other affordable housing organizations that have used AI to streamline operations or improve resident experiences.

• Paint the Picture: Help your board imagine what AI will look like in action. How will predictive maintenance reduce costs? How will AI-powered communication improve resident engagement?

• Create Urgency: Make it clear that delaying investment risks falling behind competitors or missing opportunities to meet growing demand for affordable housing.

The Bottom Line: AI Is an Investment in Your Mission

Boards don’t approve tools—they approve impact. AI has the power to make your organization more efficient, more effective, and more aligned with your mission to serve communities. By showing how AI delivers 10X value, aligns with organizational goals, and positions your team for long-term success, you can build the trust needed to secure transformational funding.

The time to act is now. Affordable housing is at a crossroads, and AI is the tool to move the sector forward. Make the case, get the buy-in, and start building the future of affordable housing today.

Need help introducing this topic with the board? Our advisors at The Strategic Edge are well-versed in working with your leadership team & board members to inspire, strategize, plan, and execute AI roadmaps within affordable housing organizations. Book a 15 minute call with us to chat about how to secure funding for AI transformation.