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AI adoption is rapidly shifting from a futuristic concept to a strategic imperative for charities that aim to survive, thrive, and amplify their impact. Across the sector, excitement about AI is growing but many organisations still face persistent hurdles: tight budgets, stigma around certain causes, skills shortages, fragmented data, outdated systems, and ethical considerations.
Despite these challenges, leaders are increasingly recognising AI’s transformative potential: streamlining operations, expanding service reach, and delivering more personalised engagement with supporters. Yet adoption remains uneven, often driven by individual champions rather than embedded organisational practice.
Understanding both the opportunities and the obstacles is essential, but what does this look like in practice? The following key themes and takeaways from our latest sector report shed light on how small to medium sized charities are navigating the AI landscape, the challenges they face, and the strategies that are helping some organisations lead the way. If you're a charity and you're interested in finding out more about how best to use AI in your organisation, feel free to register for our upcoming AI workshop.
Appetite Isn’t the Issue
There is strong interest in digital and AI-enabled transformation.
Leaders recognise the potential for:
- Greater operational efficiency
- Improved donor engagement
- Stronger service delivery
- Smarter use of data
Cloud adoption is common. Agile planning is often preferred over rigid multi-year strategies. Many organisations are already experimenting with AI in practical ways.
But experimentation does not equal maturity.
Strategy Without Structure
A consistent theme was the absence of formal digital or AI strategies.
Smaller charities often rely on IT policies or project-based upgrades rather than outcome-linked digital plans. Governance frameworks are emerging rather than embedded.
AI adoption is frequently champion-led, driven by motivated individuals rather than organisation-wide mandate.
That creates momentum, but also fragility.
Without:
- Clear ownership
- Acceptable-use policies
- Trustee-level understanding
- Defined measures of impact
progress remains uneven.
Governance Feels Harder Than Technology
Technology itself is rarely the main barrier.
Low-risk, high-impact use cases are already in play:
- Administrative automation
- Marketing workflows
- Translation
- Case management support
- Digital signatures
The bigger question charities are asking is not “Can we use this?” but “How do we use it responsibly?”
Ethical concerns, risk appetite, reputational sensitivity and trustee oversight are shaping adoption decisions.
This caution reflects responsibility but without structure, it can slow progress.
Data Foundations Matter
Many organisations have moved to the cloud, but fragmented CRMs, spreadsheets and legacy systems continue to limit ambition.
Where data is siloed or poorly integrated, AI capability is constrained.
Digital maturity is not just about adopting tools. It’s about strengthening the data ecosystem that makes AI meaningful.
Capacity and Change Fatigue
Digital and AI literacy remains uneven.
Funding pressures, post-COVID change fatigue and ongoing operational demands are affecting the capacity for long-term transformation.
Cybersecurity maturity also varies. Baseline controls are often in place, but ongoing resilience and awareness are inconsistent.
The sector is balancing innovation with stability and that balancing act requires careful prioritisation.
The Strategic Shift
What this research makes clear is that AI adoption cannot be separated from wider digital maturity.
The real shift required is from technology-led upgrades to service-led, AI-enabled strategy.
That means:
- Moving from informal experimentation to structured governance
- Investing in targeted training and digital champions
- Embedding ethical guardrails
- Strengthening data foundations
- Aligning digital ambition with mission outcomes
There is no single pathway to becoming “AI ready”. Starting points differ but the direction of travel is shared.
Thoughtful Progress Is a Strength
Perhaps the most encouraging finding is this:
Charities are not rushing blindly into AI.
They are approaching it with seriousness and a strong sense of responsibility to beneficiaries and donors.
That mindset is a strength.
The challenge now is ensuring that caution does not become paralysis and that experimentation evolves into coherent, organisation-wide strategy.
We’ll be continuing this conversation in an upcoming workshop focused on practical next steps for charities navigating AI adoption.
If these themes resonate with your organisation, we’d welcome the discussion. Register for the workshop here.
If you'd like to get in touch with us, visit www.intergence.com or call us on 01223 800530.