Battling AI disruption and DEI cuts to keep nonprofit technology pathways open

As Diversity, Equity and Inclusion initiatives continue to lose federal support, rollbacks have rippled across tech sectors – with Google recently dropping more than 50 DEI-centered organizations from its sponsorship list.

Among those hit the hardest have been tech nonprofits, like The Knowledge House, which targets digital needs in under-resourced communities. Straddling major funding and hiring instability fueled by both anti-DEI sentiment and AI disruptions, the South Bronx-based tech education nonprofit saw a 20% reduction in hires among graduates of its popular job-training fellowship. 

As more industry partners shift to AI to reduce headcount among rollbacks to DEI initiatives, fewer non-traditional applicants are landing entry-level positions. For students enrolled in The Knowledge House’s rigorous Karim Kharbouch Coding Fellowship, which trains high school students in code and design skills, this could spell major changes for future job opportunities. Fellowship students are mentored year-long and get a two-month paid summer work experience, in addition to monthly workshops, college counseling and career planning. 

In addition to their popular Innovation Fellowship catered to adult learners interested in cybersecurity, data analysis and software engineering, their latest program aims to democratize digital literacy to the general public – through basic workshops on AI, ChatGPT and coding. 

While demand for tech careers have grown exponentially, experts at The Knowledge House worry that pathways are narrowing. Despite hiring contractions, CEO and co-founder Jerelyn Rodriguez is equipping students with AI tools and deepening partner relationships to stay ahead of the game. 

New York Nonprofit Media caught up with Rodriguez on how federal cuts and the AI disruption are impacting technology education nonprofits. 

This interview has been edited for length and clarity. 

Starting off with The Knowledge House’s Innovation Fellowship, there was a record breaking number of applicants this year. What kind of jobs are they graduating into?

Traditionally, our innovation fellows get entry-level roles in tech, ranging from web developers, software engineers, data analysts, or business analysts, product managers, UX/UI designer and also like technical project managers, technical writers. So it's a variety of jobs, whether they’re engineering or tech adjacent jobs. Things have changed drastically in the past 18 months, where we are seeing less entry-level jobs available to our students.Three years ago, we were seeing a lot of them get into full time jobs, paying market rate wages. Right now we're seeing more of them get into apprenticeships. While it’s still a pathway to a good career, the job type looks a little different. We are also seeing folks get tech jobs at non-tech companies, like in government agencies, the climate sector or the manufacturing sector, but our biggest employers have always been Barclays, Bloomberg, Accenture and Morgan Stanley. We’re hoping things stabilize a little bit, but it's been a little inconsistent the past few years. 

What factors are driving this inconsistency? 

Three trends that I can point to really have started since two years ago. During the end of COVID, there was a big boom where tech companies were hiring a lot and there were a lot of opportunities for entry level-talent with access to high salaries. I think companies have scaled back now, realizing that they probably over-hired or overcompensated. Secondly, the past two years there has been this anti-DEI movement. During COVID, companies were very adamant about diversifying their talents and launching a lot of DEI initiatives to provide opportunities for non-traditional talent. A lot of those programs have either gone away or they've scaled back which has impacted hiring. And finally, there's this AI disruption. The data shows that companies are replacing those entry level jobs with AI. They are looking for more senior engineers that can manage AI systems to do more with less. 

Regarding AI disruption, how are you adjusting your programming, so that your students remain competitive applicants? 

There’s still a lot of uncertainty around what AI jobs will be accessible to entry level talent. We usually work really closely with employers to inform our curriculum, but a lot of employers are still figuring it out. So before we address AI, I think it's important for organizations like The Knowledge House to be open to what I call bridge employment: work-based learning opportunities, internships, apprenticeships, where entry-level job seekers can gain experience so that they are competitive in the job market. We are also staying open to tech adjacent roles and are integrating AI curriculum across our programming. In the digital literacy program, we are providing AI fundamentals, where we teach the general public, what is Gen AI, ChatGPT and AI softwares that are free or low cost. It’s the same thing with our high school program, where we introduce them to AI tools and the ethical use of AI. Even though our employers are not 100% certain on what we should be teaching, it's clear that so many tech jobs require knowledge of AI tools. 

What’s been the impact of cutting Diversity, Equity and Inclusion initiatives at The Knowledge House? How is this shift impacting your students? 

It’s an irony that we have to navigate— since the pandemic we've had more applicants to our programs, this past year, we could only accept 10% of applicants. At the same time, every single year, less of our graduates have been hired. In 2021 90% of our graduates were getting placed in their first tech job, and in the past two years, that has been reduced to 65% to 70%. While graduates are not getting a tech job, they are using their skills to increase their wage in other sectors and using their technology skills in transferable ways, which is still positive. We're seeing a lot of impact, but it's not the impact we expected by engaging in the tech industry.

Do you think employers are snubbing your applicants? 

I don't think that employers are purposely snubbing our talent. I think their intention includes saving costs, creating efficiencies and staying competitive in the AI industry. If they can achieve more business outcomes with less head count, they naturally will be looking for more senior talents. 

Have you been impacted by federal funding cuts to DEI centered initiatives?  

Yeah, oh, absolutely. I think most nonprofits have been. We secured a federal grant back in November to provide digital equity programming, and we learned just last month that those funds are being cut. We've had other examples where funders have changed their strategy, where they might not be funding direct service anymore, but are switching over to systems change work or funding intermediaries. We've had some corporations say that they’re going to still fund us, but at a reduced amount. So we've been impacted in many ways. We know that other nonprofits have been impacted in more drastic ways. But we are fortunate that our mission really serves low income populations of any race, any ethnicity. There are some nonprofits that strictly target girls or strictly target black or brown students, and I say they have been impacted more, but I would say most nonprofits right now are navigating this change.

How is that going to impact your programming? Are you changing the way you serve your students? 

No, not at all. Like I mentioned, The Knowledge House targets low income young people and job seekers, and it's a very diverse group. Of course, the vast majority identify as Latino, Latina or African American. Most of them come from immigrant backgrounds. But we also have a lot of Asian students and white students who also need access to our services. So we aren't changing the population that we serve at all and who we target, unfortunately, to our stakeholders. We need to be a little careful about how we communicate our mission. And we have to highlight the fact that, yes, the majority are black and brown, but it's an inclusive program that is accessible to everyone with low income. 

Now that The Knowledge House has been around for a decade, what are some major takeaways that you've gathered over the years?

We're heading into year 11, and I think it's been so important for us to stay nimble and adaptable. We have had to survive through crises at this point, COVID being the main one. I'd say that right now we're in another crisis. My staff are very accustomed to changing the curriculum as needed, because technology evolves so much. Paying attention to student data, always looking at feedback and looking at outcomes to pilot continuous improvement initiatives is really a part of our DNA. It's something that sets us apart as a young nonprofit. So stay nimble, even as you grow and even as you get bigger, because sometimes you will have to respond to external forces that are out of your control. Like this AI, disruption. It was not in our plan to integrate all of these AI skills, tools and knowledge and now we have to do it.