This chapter explores the dynamic landscape of AI adoption in the creative sector, focusing on nonprofit arts and culture organizations. It introduces interdisciplinary perspectives from public administration, management, business, technology, and humanities to examine AI adoption issues as perceived by nonprofit administrators in these organizations. Traditionally, nonprofit governance centers on public interest, value creation, and accountability. With technological advancements, arts and culture nonprofit leaders must balance creative innovation and organizational efficiency while maintaining accountable for their public mission and enhancing public engagement. The study identifies common challenges such as resource limitations and workforce preparedness. Ethical concerns related to the human-centric nature of creativity in the arts require careful stakeholder deliberation. This chapter underscores the need for systematic transformation at organizational, cross-sectional, and policy levels for responsible AI adoption in the creative sector.