NFPs remain wary of AI potential, survey reveals

New findings from Pitcher Partners have revealed the not-for-profit sector’s approach to AI has remained strategic and focused on specific applications, despite its rapid uptake across other industries.

The 2025 Pitcher Partners NFP survey indicated that NFPs recognised generative AI’s potential to enhance operations and engagement, yet incorporated it cautiously and deliberately.

The survey revealed the top five uses of AI in NFPs, which included marketing and communications, data analysis and reporting, fundraising/donor engagement and customer service.

Mark Harrison, Pitcher Partners partner, said marketing and communications was revealed to be the primary case use, with 44 per cent of NFPS using AI to streamline their content creation and enhance outreach.

“This focus reflects the sector’s strategic prioritisation of stakeholder engagement and donor relationships and could be an important tool in helping communicate value and impact to address changing expectations,” he said.

“This targeted approach suggests that NFPs are selectively implementing AI where immediate value is most evident, rather than pursuing comprehensive digital transformation.”

The top concerns for NFPs reported around AI included 64 per cent at data inaccuracy and quality, followed by 56 per cent at data protection and privacy issues and 44 per cent at intellectual property and legal concerns.

Harrison said these concerns reflected the sector’s commitment to building trust, yet 48 per cent of respondents reported that AI had positively impacted their operations and pointed to early returns on investment for organisations that had embraced the technologies.

“These priorities underscore the uniquely sensitive position of NFPs, where trust is a fundamental currency and where organisational reputation can directly impact funding and community support. For a sector often working with vulnerable populations and sensitive information, these concerns represent significant barriers to wider AI adoption,” he said.

“A significant portion remains uncertain about AI’s effects, suggesting that many NFPs are still in experimental phases or lack robust assessment frameworks to measure outcomes. This cautious optimism mirrors the sector’s approach to other digital innovations – focused on practical applications that directly support mission fulfillment rather than technology adoption for its own sake.”

For NFPs sceptical or looking to incorporate AI into their systems and processes, Harrison suggested identifying key areas for AI implementation, developing an AI governance policy, creating data privacy safeguards, engaging stakeholders, investing in training and skill development. Polit and iterate, as well as monitoring and evaluating.

According to Pitcher Partners, the NFP sector stood at a “critical juncture with generative AI”, as it balanced the operational efficiencies and enhanced engagement the technology promised against legitimate concerns about quality, privacy and legal compliance.

Harrison said the future of AI for NFP leaders would likely involve strategic implementation in areas of clear return, coupled with robust governance frameworks that address the sector’s unique concerns and responsibilities.

“Organisations that develop clear governance frameworks for AI implementation, focusing on transparency and quality control, may find themselves better positioned to leverage these tools while maintaining stakeholder trust,” he said.

“As adoption increases and best practices emerge, NFPs that thoughtfully incorporate AI into their operations may discover new ways to amplify their impact and extend their resources – particularly valuable in an environment where operational pressures continue to mount.”