Artificial intelligence (AI) is rapidly becoming part of everyday workplace tools - but there has been limited concrete information about how Canada’s nonprofit sector is actually using it. This new report, produced in collaboration with the Canadian Centre for Nonprofit Digital Resilience (CCNDR), offers one of the first snapshots of AI adoption by charities and nonprofits across Canada.

In partnership with Microsoft Elevate, The State of Artificial Intelligence Adoption in Canadian Nonprofits provides an early benchmark of where nonprofits are today: how common AI use is, what tasks and functions they are applying it to, what factors enable or limit adoption, and how governance and policy development are keeping pace.

The findings paint a picture of a sector that is curious and experimenting - while still building the confidence, skills, and governance needed for deeper and more responsible use. To support organizations in their AI journey, visit CCNDR’s Nonprofit AI Impact Hub - a national learning and discovery platform designed to help nonprofit professionals understand and use AI with curated, sector-relevant resources. The Hub provides practical materials spanning topics such as ethics and responsible use, training and education, tools, case studies, research, and emerging issues. 

• AI use is common but often limited. 80% of nonprofits use AI; half use it in three or fewer activities. Smaller organizations, arts, culture and recreation nonprofits, and those in Alberta, the Prairies, and Atlantic Canada are less likely to use AI.
• Most experiment first with more intuitive activities. About 67% use AI for communications and fundraising, and 50% for data and information tasks; far fewer use it for more complex areas, such as strategy, HR, or programming.
• Experience drives confidence. The more extensively an organization uses AI, the more confident it is about AI’s potential and the less likely it is to see AI as over-hyped.
• Staff time and access to relevant knowledge are key enablers. The biggest barriers to AI adoption and use expansion are uncertainty and limited hands-on experience - not financial resources. However, funding plays a role for scaling use - nonprofits with sufficient funding reported using AI for at least one additional activity on average. 
• Risk awareness is mixed and policies lag. A majority reports awareness of reputational risks (62%), legal, ethical or environmental issues (60%), and inequities (54%), but many remain unsure. Only 10% have formal AI policies and 21% are developing them; 64% of AI-using nonprofits have no policies and aren’t developing any.
• Most nonprofits don’t leverage external supports. Only 16% have used a network or group for AI support and 9% hired a consultant; larger and more extensive AI users are more likely to access support. Among those who do, training is most common (67%).