Around three quarters of charities say they do not feel prepared to respond to the opportunities and challenges AI tools such as ChatGPT bring.

Charities are interested in artificial intelligence (AI) but too many are not ready to respond to the potential of such tools, a report is warning.

Almost three quarters of charities are currently not using AI technology, 2023's Charity Digital Skills Report suggests.

Its poll of 100 charities found that only 27% are using AI, although a further 26% say that while they are not using it yet they are planning to do so.

This slow uptake of AI comes as most charities (78%) believe that AI could be transformational for their organisation.

But a similar proportion (73%) say they don’t feel prepared to respond to the opportunities and challenges it brings.

More than half (52%) want to investigate using AI more, but feel constrained by a lack of time, resources and skills and more than two in five (42%) are trying to get colleagues to engage.

Almost half (48%) are worried about the consequences for their organisation of using AI.

A third (32%) of charities are keeping an eye on the impact of automation on staff and their jobs.

The report is optimistic AI uptake among charities will improve through action to improve their readiness for the technology. This includes 30% improving their use of data, 25% exploring how AI can be used and 18% testing tools to develop their AI knowledge and skills.

Larger charities are more prepared for AI than their smaller counterparts. The survey found that 64% of large charities are currently using or plan to use AI in their day-to-day operations, compared to 44% of small charities.

But the report warns that “AI could potentially create inequalities if larger charities are more likely to benefit from it”.

It adds: “Charities recognise AI is relevant to them and are concerned about what AI could mean for the future of their organisation but are not yet on the front foot with how to seize the opportunities or mitigate the risks.”

The survey also found that more than half (56%) of charities say they are poor at keeping up to date with digital trends, such as ChatGPT, as well as fundraising and promotion via TikTok.

The report points out that many in the sector are missing out on taking advantage as cutting red tape is a “growing need for charities”.

“This may be where tools such as ChatGPT and increased automation could help charities,” it adds.

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