There has been “substantial growth” in the adoption of artificial intelligence (AI) over the past year, as more than three-quarters of charities are now using the technology, according to a new report.
The Charity Digital Skills Report 2025, published today, shows that 76% of charities are now using AI tools compared with 61% in last year’s survey.
Moreover, the proportion of charities developing an AI policy has tripled since last year, from 16% to 48%.
However, the research, which surveyed representatives from 672 charities, found that the cost-of-living crisis remains a significant barrier to digital progress.
Just over six in 10 made digital progress this year, with three-quarters of respondents prioritising technology within their organisations.
It says systemic issues that date back to the first report in 2017 continue to exist, including charities that do not have a strategy, the inability to use data to inform decision-making or strategy and a lack of basic digital skills.
Barriers to digital progress
The report finds that squeezed organisational finances remain the biggest barrier to digital progress for 69% of respondents, followed by finding funds to invest in infrastructure, systems and tools (64%) and lack of headspace and capacity (63%).
The number of charities operating with a digital strategy has decreased from 50% since last year’s report to 44%, while nearly two-thirds reported making progress with digital this year (2024: 76%).
Over a third of respondents said their chief executive had “poor AI skills, knowledge and confidence”, while four in 10 stated that their board was also poor in this area.
The report says upskilling on AI is not just a leadership problem, as 35% admitted being poor at using AI tools in their day-to-day work, and 29% said they did not do this.
Half of the respondents said they were either struggling to keep up with emerging technological trends or not across these trends.
Regarding social media, 51% of respondents said they had either left or reduced their use of X, formerly known as Twitter, up from the 18% that did so in 2024. This figure rose to 60% for large charities and 65% for LGBTQIA+ charities.
Meanwhile, only 5% said they were investing more in tackling misinformation or community moderation.
Some 27% of respondents reported difficulties accessing funding for digital costs, but this rose to 44% for those from Black-led charities, 34% for those from lived experience-led charities, 33% of disabled and d/Deaf-led organisations and 35% of neurodivergent-led charities.
Charities in Northern Ireland, the north of England and Midlands reported being at an earlier stage with digital progress compared to other regions.
‘Sector needs partners and funders’
Zoe Amar, founder of the Charity Digital Skills Report, said: “Funding for digital is more important than ever during the cost-of-living crisis, with squeezed organisational finances being the biggest barrier that 69% of charities now face when looking to progress digitally.
“We urge funders to consider how they might meet these needs and recognise that charities also need funding for core staff or cover staff time to spend on digital/data, a huge increase from 30% in 2024.”
Rohati Chapman, executive director for programmes, policy and impact at Carers Trust, said the charity sector needs “partners and funders to back core skills and strategic leadership”, alongside investing in tools.
“This means closing the gap between charities most able to harness digital and AI and those pushing uphill with limited resources and knowledge,” she said. “The future is digital, but this transition must also be just.”
Janine Duggan, head of digital at Guide Dogs, said the report’s findings reflect “the perfect storm the charity sector is facing with pressure from rising demand for services and shrinking resources, teamed with increased costs and a tougher fundraising climate”.
“A data-led, audience-centric 360 approach is therefore more essential than ever for charities to successfully navigate digital and will be critical to ensuring we reach the right people, at the right time and in the right way,” she said.
“We must prioritise making strategic decisions on data structures and marketing technology and prioritise how we organise ourselves and create new approaches to the ways we work.”
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