Charities in the UK are now widely using artificial intelligence but most use remains informal and free from trustee oversight, according to a new report.
The Future Charity Report by Charity Excellence warns that increased AI use in the sector is “creating a growing risk to public trust unless governance and transparency catch up”.
Drawing on data from hundreds of charities, researchers found that 76% of UK charities were using AI in some form, up from 61% the previous year, but much of this use was informal and ungoverned, such as staff using generative AI tools independently.
Only 2% of charities reported using AI at a strategic level and Charity Excellence has assessed that most charities have yet to take meaningful action on AI strategy, accountability and training.
However, it found that operational safeguards, including data protection, security and human review of AI outputs, were improving, which it said suggests that AI adoption is being driven from the ground up rather than by board-level decision-making.
AI preparedness across the sector is now “moderate but improving from a very low base”, according to the report, with operational controls developing faster than strategic governance.
This uneven progress represents a “significant risk, not only to individual charities but also to overall trust in the sector”, the report warns.
The report also references Charity Commission research from 2024, which found that only 3% of trustees said their charity was using AI in their operations, rising to 8% among larger charities, indicating a "significant gap between what is happening operationally and what boards believe is happening”.
“Without the necessary policies and board-level oversight in place, we risk a loss of the human touch that could damage the very connection that makes charity work possible,” the report says.
AI now common part of grant bid drafting
Charity Excellence found that AI is now a common part of grant bid drafting, but it is rarely used to write applications.
Charities surveyed said they mainly used AI to save time, improve clarity and tailor responses, while still controlling tone and content.
Meanwhile, 14% of charities surveyed said they were actively trying to avoid AI use for bid writing.
The report notes that funder attitudes have remained cautious, with some explicitly discouraging AI-written bids, and many warning that they can easily spot AI-generated applications.
Ian McLintock, founder of Charity Excellence, said of the report’s findings: “AI is already embedded in day-to-day charity work, but much of it is happening quietly, with many boards not really knowing what’s in use or why.
“The risk isn’t the technology itself – it’s using it without clear human control, transparency and accountability.
“Trust is the charity sector’s greatest asset, and in an AI-enabled world we cannot afford to take it for granted.”
