The rapid integration of generative and predictive AI into social services presents a paradox for CAA directors: the potential for unprecedented efficiency versus the risk of deepening the digital divide. This interactive session is structured into three critical pillars: • The Good: We explore "The Efficiency Revolution." We will demonstrate how 2026-era AI tools are currently automating CSBG reporting, streamlining intake processes, and performing predictive analytics to identify emerging poverty hotspots before they reach a crisis point. • The Bad: We address "The Governance Gap." This section covers the hidden costs of AI—including data privacy concerns, the "black box" nature of eligibility algorithms, and the risk of losing the "human touch" in empathetic case management. • The Ugly: We confront "Algorithmic Injustice." Participants will engage in a "Bias Audit" workshop, examining real-world case studies where AI systems unintentionally discriminated based on zip codes or historical socioeconomic data, and discuss the director’s role in ethical oversight. The session concludes with a "Live Lab" where directors will draft the first three pillars of an AI Acceptable Use Policy tailored for their specific agency. Key Takeaways 1. AI Roadmap for 2026: Identify the top three AI applications currently delivering the highest ROI for Community Action operational workflows. 2. Risk Mitigation Framework: Learn how to implement a "Human-in-the-Loop" (HITL) protocol to ensure AI-assisted decisions are reviewed by qualified staff. 3. Ethical Governance: Gain a checklist for vetting third-party software vendors to ensure their AI models are transparent and compliant with evolving federal data protections. 4. Operational Templates: Receive a draft "AI Ethics & Transparency Statement" to share with boards, donors, and the communities being served.