61% of UK charities now using AI on day-to-day basis

61% of UK charities are now using AI in their day-to-day work or operations, according to the recent Charity Digital Skills Report 2024.

This is a significant increase on the 35% that were using AI tools last year. However, 45% are using them informally and only 11% are using them across their organisation with a further 5% working towards this. There is also a marked difference depending on the size of the organisation: 53% of small charities are using AI in their day-to-day work, compared to 78% of large ones.

635 charities took part in the study, which also found that a third (34%) see using AI tools as a priority this year for their organisation. These results, the report says, suggests that a lot of staff are testing AI tools but that organisations are not adopting them formally at this point. In addition, only 22% currently feel prepared to respond to AI opportunities and challenges.

Overall, less than 1 in 5 are putting in the building blocks needed for AI use such as developing an AI policy (16%), reviewing data protection and security (15%), and improving data maturity and capability (9%). More large charities are focusing on these, with 34% developing an AI policy and 25% reviewing data protection and security.

The annual research also found that half of UK charities now have a digital strategy although only 14% feel they have embedded this in their organisation and are advanced with digital. 76% feel they have made digital progress this year but 41% say they are poor at digital fundraising, and another 25% don’t do it. At the same time, 52% say it is a key priority for their organisation this year.

Lack of funding a key issue

However, three quarters of those polled said they need funding to create time and capacity to work on organisational development and digital strategy. Organisational finances are the biggest barrier that 68% of charities now face in moving forward with digital. This has risen considerably from 2023, when only 27% said the cost-of-living crisis was affecting progress.

For almost half (45%), lack of digital funding is their biggest barrier, and among small charities 72% say they are struggling digitally due to squeezed organisational finances.

Nissa Ramsay, founder of Think Social Tech and co-author of the report, noted:

“We can see the impact more on smaller organisations, of which two thirds are at an early stage with digital (64%). For example, 53% of small charities are using AI tools in their day-to-day work, compared to 78% of large charities.

“Funders can make a radical difference by developing more inclusive funding practices. As it stands, only a quarter of charities were able to access funding that covered any digital costs this year. Both large and small charities need funders to recognise digital costs are vital core costs. It’s striking that 73% say their biggest digital funding need is time to work on organisational development.”

This year’s findings also revealed that among black-led charities, 65% are struggling to find funds to invest in devices, software and infrastructure, and that 41% of black led charities in the UK struggle to find a funder who will support a digital project. This is higher than the report’s main sample (21%), all small charities (25%) and charities led by other specific marginalised groups. There is also a slightly greater prioritisation of digital inclusion support among organisations tackling racial injustice. A third (33%) say this is a key priority for their organisation this year and 29% say this is a key need for funding.

Commenting on the findings, co-author Zoe Amar, founder of Zoe Amar Digital, 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.”

Picture by Gerd Altmann on Pixabay