How AI is evolving for charities

Whether it is being deployed to help create content or analyse complex data, or to better support communities through chat bots, the latest data suggests artificial intelligence (AI) tools are commonplace in the charity sector.

 

The priority now for the sector is to ensure that AI tools are used responsibly, with awareness of wider impacts, including involving staff, volunteers and beneficiaries in how it is being deployed. Tackling its impact on the labour market and the environment is also important.

 

 

Increasing use of AI among charities

 

A raft of evidence shows just how prevalent AI use is among charities.

 

For example, a 2025 report released by fundraising and donor management firm Blackbaud found that the proportion of charities using AI increased from almost three in five in 2024 to just under four in five a year later.  

 

Similarly, the 2025 Charity Digital Skills Report found substantial growth in AI adoption, with more than three in four using AI tools, compared to just over three in five the previous year. The report also found that more than a third are using AI in grant fundraising, and around one in five are using AI in their communications and fundraising.

 

Another report from the same year, by digital firm 3-Sided Cube, found nine in ten charities are using AI “to some extent”. It also found that one in six charity representatives say the tech is fully integrated across their organisation, which is four and a half times greater than the previous year.

 

In addition, the proportion of charities reporting positive impacts of AI, in areas including efficiency, productivity, data analysis, research, and content creation has increased from just over one in ten to almost two in five between 2024 and 2025.

 

But, each of these three reports raise ethical considerations that charities need to be aware of as their relationship with AI evolves. These are ethical considerations the of which the sector is aware but not doing enough to address. The approach to AI is shifting. As 3-Sided Cube says, the charity sector “has crossed a tipping point” in which “adoption is the norm” and now the “the hard work shifts to quality of use, governance, and measurable value”.

 

 

Engage communities

 

A priority in this evolution should be improving community engagement in AI decisions, says 3-Sided Cube. Its research warns that just under half of charities “rarely involve affected communities in AI projects” and only one in seven engage with communities “often or very often” when using the technology.

 

Such engagement is important to tackle problems early on as users can “catch risks you miss”. It also helps build trust through “transparent, two-way design” and involving communities in AI decisions can result “in real uptake”, says the digital firm.

 

 

Put AI policies in place

 

Meanwhile, Blackbaud’s report warns that “AI policy development is still in its early stages” although between 2024 and 2025 more charities were developing such plans. It found that charities with an AI policy increased from one in sixteen in 2024 to one in six in 2025. The proportion with one in development over the period doubled from almost one in six to just under one in three.

 

Lack of AI policies is more prevalent among smaller charities, the report found. While more than half of charities are still without a policy in place or in development, that number increases to seven in ten among small charities.

 

These policies need to consider the role of charities in any potential harms that AI presents, especially as three in ten jobs could be at risk of automation by 2041, according to research by PwC.

 

AI policies need to consider the impact of increased unemployment on demand for their services, and how a decrease in entry level roles through automation will affect charities.

 

Another issue to policies to consider is the environment impact of AI, which requires vast data centres that can produce hazardous waste and consume a considerable amount of power. Tree planting to mitigate the harm to the plant could be among initiatives detailed in AI policies.

 

The potential for bias within AI is another issue, charities’ policies need to take into account to ensure it is not being discriminatory, such as in recruitment tools recommending certain jobs to men over women.

 

 

Invest in AI training

 

The need for AI training among charity staff, volunteers, and leaders is raised in Charity Digital Skills report. Despite an increasing use of AI, more than a third of charity representatives surveyed for the report believe their chief executives have poor AI skills, knowledge, and confidence. Two in five warn their trustees are struggling with AI and just over a third want their leaders to better understand the risks and opportunities of the technology.

 

The findings here were similar to the previous year, highlighting the need to change, warns this report. A solution is to ensure staff, volunteers, and especially leaders, have access to training to better understand how AI can support their organisation and work.

 

This needs to have a focus on ensuring charities can keep up to date with emerging AI tools and trends, especially as half of respondents to the Charity Digital Skills Report found this to be a challenge.

Clearly charities relationship with AI is undergoing an evolution. As 3-Sided Cube Chief Executive Duncan Cook says: “AI has moved from if to how. The best teams are past the demos. They start small, prove value in human terms, and put simple guardrails in place.”