India’s nonprofit sector lags in AI adoption, says new survey

India’s nonprofit sector lags in AI adoption, says new survey

30 per cent of nonprofits not yet using AI; report highlights challenges and opportunities.

AI

Mumbai: As Artificial Intelligence (AI) revolutionises industries worldwide, India’s nonprofit sector finds itself at an early stage of AI adoption, with nearly 30 per cent of nonprofits yet to implement the technology, according to the India AI Readiness Report. Released by GivingTuesday Data Commons, the report offers insights into how 251 nonprofits across India are navigating AI’s transformative potential.

The survey identifies two distinct groups—early adopters and late adopters—based on AI usage. Larger, urban nonprofits dominate the early adopter category, leveraging tools like generative AI and expressing a keen interest in expanding AI applications. In contrast, smaller, rural-focused organisations often lack technical resources, limiting their AI adoption primarily to basic tools.

“This research is a critical benchmark in the efforts to ensure that the social sector is not left behind as AI becomes increasingly relevant. The India AI Readiness Report was developed as a supplement to the global study, focusing exclusively on insights from 251 organisations across the country. We hope this report will help anchor your decision making in relationship to AI, whether you’re a nonprofit considering how you compare to others in the AI adoption scale, a technology platform looking to better understand current nonprofit needs, an educator looking to develop resources for nonprofits, or a funder considering how to best support the sector’s AI adoption. By spotlighting India’s progress, we hope to spark further conversation around how to collectively approach AI adoption in the social sector and guide Indian nonprofits, funders, and stakeholders in their decision-making and collaborations,” said GivingTuesday, CEO, Asha Curran.

The report highlights that systemic challenges—knowledge gaps and limited infrastructure—are significant barriers to equitable AI adoption. Addressing these requires collaboration among philanthropy, technology, and the nonprofit sectors.

“This report highlights the nuances in current AI adoption and knowledge, and understanding these differences is integral to achieving equitable and beneficial AI adoption in the social sector. Addressing the systemic challenges of knowledge and infrastructure gaps, which are not unique to this technology, requires cross-sector collaboration among philanthropy, technology, nonprofit, and researchers. Collectively, identification of strategic and tactical use cases to move us from “how do we use” to “what do we need” will support an ecosystem that centres mission needs in the design, development, and governance for equitable outcomes,” added GivingTuesday, chief data officer, Woodrow Rosenbaum.

Key Findings:

. Early Adopters: Representing organisations with robust data-use policies, cloud-based systems, and technical expertise, 60-80 per cent are eager to explore advanced AI applications.

. Late Adopters: Often resource-constrained, only about 10 per cent of these organisations show interest in future AI uses, with 40 per cent unsure of potential applications.

. Regional Insights: Western India leads in AI demand but has the lowest percentage of nonprofits employing technical staff.