Nearly half of nonprofit organisations globally lack the in-house skills needed to adopt artificial intelligence, creating a significant gap between interest in the technology and its real-world use, according to a new report released by social impact platform Goodera.
Goodera’s State of AI Literacy in Social Impact 2025, based on a survey of more than 1,000 nonprofits across over 30 countries, finds that while enthusiasm for AI is high across the sector, capacity constraints are preventing organisations from deploying the technology in meaningful ways.
The report shows that almost 50 per cent of nonprofits cite insufficient internal AI skills as a primary barrier to adoption, even as demand for AI-powered tools and training grows among both organisations and the communities they serve.
Interest in AI is widespread. Around 71 per cent of nonprofits surveyed say they want to use AI to improve operational efficiency, while 76 per cent say the beneficiaries they work with are actively asking for AI literacy programmes. However, only 25 per cent of organisations currently report using AI tools in their day-to-day operations.
This disconnect, the report says, highlights a sector stuck in early experimentation, unable to translate intent into implementation due to limited skills, confidence and access to practical learning environments.
“Nonprofits don’t lack intent when it comes to AI, they lack access, confidence, and safe pathways to learn,” said Abhishek Humbad, Founder and Chief Executive Officer of Goodera, in the report. “Bridging this gap is essential to ensure communities are not left behind in an AI-driven future.”
Rather than viewing AI as a disruptive or transformational leap, nonprofits primarily see it as a practical tool to address immediate operational pressures, the report finds.
Nearly 80 per cent of respondents prioritised communication and storytelling use cases, including donor outreach, social media content, grant writing and impact narratives. Other high-priority applications include impact measurement and reporting, fundraising and donor engagement, data management and analysis, and the creation of training and educational content.
These areas reflect chronic capacity constraints across the nonprofit sector, where staff often spend significant time on administrative and reporting tasks. AI, the report notes, is seen as a way to reduce this burden and redirect limited resources towards frontline mission delivery.
However, the skills gap remains a major obstacle. The report finds that 86 per cent of nonprofits are interested in hands-on, guided AI training led by corporate volunteers, signalling a preference for practical, supported learning over one-off webinars or theoretical sessions.
Despite rising demand, fewer than one in four nonprofits currently offer any form of AI learning programme to their beneficiaries, underscoring how internal capacity limitations also affect community-facing initiatives.
The lack of safe, judgment-free environments to experiment with AI emerged as a recurring concern among respondents. Many organisations reported hesitation around using AI responsibly without clear guidance, particularly given ethical considerations, data privacy risks and fears of unintended harm.
Beyond internal operations, the report highlights growing concern that communities served by nonprofits could be excluded from the benefits of AI-driven economic change. Around 87 per cent of organisations see value in expanding AI education beyond staff to groups such as youth, job-seekers, women and families.
Education, employability and women’s empowerment were identified as the top programme areas for community-facing AI initiatives, with respondents viewing AI literacy as increasingly linked to future economic opportunity and social inclusion.
Goodera said the findings point to the need for stronger collaboration between the technology sector, corporate volunteers, policymakers and social organisations to build responsible AI capacity across the nonprofit ecosystem.
Without targeted investment in skills, training and support structures, the report warns that the gap between AI’s potential and its actual impact in the social sector is likely to widen, leaving both organisations and vulnerable communities at risk of falling further behind. |
