More than six in 10 charities are now using artificial intelligence (AI) in their day-to-day work or operations, according to the latest Charity Digital Skills report.
Every year since 2017, the report has collected data on charities’ digital adoption, skills, attitudes, funding and support needs.
This year’s report, published today, says that the use of AI has increased across the sector, with 61% of charities now using AI on a daily basis, compared with 35% who said they were using AI tools last year.
Most charities said they were struggling to progress digitally because of their finances while many reported a lack of digital skills on their trustee boards.
Use of AI increasing
The report says that of the 61% of charities using AI in their day-to-day work or operations, 45% are using it informally such as trying out tools.
Developing online content such as social media posts and generating images, administrative tasks such as summarising meeting notes and drafting documents and reports were some of the most popular uses and functions of AI tools.
While the use of AI has increased in the last year, only 22% of respondents said they felt prepared to respond to AI opportunities and challenges.
“We were surprised to find that 37% of charities say they aren’t taking any steps to engage further with AI,” the report says.
Half the charities that responded said the biggest barrier they faced when it came to AI was a lack of technical skills and expertise followed by a lack of training to upskill (34%).
Digital engagement
According to the report, digital was a top organisational priority for one in four charities.
Over four in 10 charities said they were “poor at digital fundraising” and a further 25% said they did not fundraise digitally, which the report says “is a worrying increase on the 55% who said they were poor at this last year”.
Most charities said they were struggling to progress digitally because of their finances (68%) and lack of headspace and capacity (66%).
In comparison, only 27% said the cost-of-living crisis was affecting their progress in last year’s report.
On social media, nearly 50% of charities said they had not changed how they use it “despite X’s volatility”.
Some 31% were spending more time engaging with audiences while 14% were spending more time monitoring social media for misinformation.
“It’s surprising that only 17% have put more effort into their other platforms, whilst 10% have developed profiles on new social media platforms,” the report reads.
Skills gaps on boards
Just over six in 10 charities said their trustees’ digital skills were “low or could improve”, which is higher than last year’s 57%.
Some 41% of charities did not have a digital trustee (2023: 35%) while 28% said they had a board with “good or excellent digital skills” (2023: 32%).
“This report has found digital skills gaps on boards every year since the report began and it is clearly a systemic challenge,” it says.
“It’s worrying, however, that for charities that do have digital trustees, 54% still felt digital skills were low or could improve at board level.
“This shows us that digital trustees are only part of the solution to digital skills gaps on boards.”
Financial pressures ‘delaying digital progress’
Report author Zoe Amar said: “This year’s results show charities are struggling with increased workload, significant financial pressures from inflation and budget cuts and little headspace for innovation.
“These pressures are definitely delaying digital progress and much of the sector seems to be in a holding pattern.
“Yet, despite the many barriers and challenges faced by charities, the appetite is still there and it is promising to see half of charities are now approaching digital strategically and 80% see digital as an organisational priority.
“AI is definitely seeing the biggest positive shift in the sector, with ambitions high, however for many charities it can lift the lid on old digital challenges and shine a light on the skeletons in the closet.
“If you still have issues with gathering high-quality data, AI is not going to solve this. You need the right infrastructure and governance in place otherwise the sector runs the risk of being left behind in the AI revolution.”
The report is based on a survey of 635 large and small nonprofit and social sector organisations between 6 March and 26 April 2024.
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