More charities are turning to artificial intelligence (AI) tools to support their work, but a significant number feel unprepared to make the most of these technologies. According to the latest Charity Digital Skills Report, 76% of UK charities are now using AI, yet 35% rate their own ability to use AI as poor, and 29% are not using AI at all.

The report highlights a widespread skills gap, particularly in AI governance, as many charity CEOs and boards lack the expertise to develop effective strategies. While nearly half of charities are working on AI policies, funding and limited digital skills remain major barriers to progress. Only 30% of charities with limited digital capacity have accessed funding to cover technology costs, compared with 55% of more advanced organizations.

The findings show that digital maturity directly impacts confidence with new technologies. Charities further along in their digital journey are more comfortable using AI for day-to-day tasks, but even among these, just 57% feel their skills are good enough. For those just starting out, this figure drops to 24%.

Most charities recognize the importance of keeping up with emerging technology trends, with 74% considering developments like AI to be relevant to their work. Over 60% have increased their digital adoption in the past year. Despite these efforts, financial constraints, limited digital strategies, and knowledge gaps in areas such as data security continue to hinder progress.

As the landscape evolves rapidly, the urgency for accessible digital tools, training, and funding is clear. Charities urgently need support to bridge these gaps and make the most of AI for their beneficiaries.