Ambition, Readiness and the Uneven State of Digital Transformation in 2025

Across sectors in the UK, digital transformation remains a national priority. Public services, charities, businesses, schools, and councils all speak of the same ambition: to use technology to work better, reach further, and deliver more value. But in 2025, the evidence points to something else. While the ambition is strong, the capacity to follow through is stretched. Strategy lags behind. Skills are patchy. Confidence is often missing where it is needed most.

The Charity Digital Skills Report 2025 sets out this gap with clarity. Now in its eighth year, it continues to offer a grounded, sector-aware view of how digital progress is unfolding in the not-for-profit world. Full credit to Zoe Amar FCIM, Nissa R., and their partners for producing something of such lasting relevance. It remains essential reading for anyone working in or around digital delivery.

This year’s findings speak for themselves. Just 44 per cent of charities have a digital strategy. Only 37 per cent feel equipped to deliver their plans. In many organisations, digital responsibilities are absorbed into already overstretched roles. CRM systems are often unfit for purpose. Basic data tasks are still managed with spreadsheets. Leadership confidence is low. Staff capacity is thin. The intent to modernise is clear, but the foundations are not in place.

This is not unique to charities. A government progress report published earlier this year confirms that 46 per cent of public services are still not digitised. A quarter remain dependent on legacy infrastructure. Even departments with dedicated transformation teams are falling short of the minimum digital service standard. The wider economy shows similar signs of strain. According to the UK Technology Index 2025, the country has slipped to 8th place in Europe for digital competitiveness, with small and medium-sized organisations reporting the lowest confidence in automation and AI.

Local government faces similar pressure. The LGA and Socitm’s research into digital readiness reveals that councils are being asked to redesign services, improve outcomes, and deliver savings, all at once. In practice, many are operating at full stretch, with staff expected to maintain core delivery while managing complex change. Restructures often reveal deep gaps in digital maturity between departments. Merging systems adds cost. Fragmented data slows down integration.

The education sector also reflects this divide. A recent national report found that private schools are far more likely to have adopted structured AI strategies. In state schools, particularly in more disadvantaged areas, AI is often introduced informally, with little oversight. Staff are left to interpret new tools in the absence of clear policy, structure, or support. The effect is a two-tier system, where confidence and competence develop only where resources allow.

A similar pattern is emerging in not-for-profits. Larger organisations are moving ahead. Many have dedicated staff, clearer structures, and long-term funding that supports investment. Smaller organisations are falling behind. Over two-thirds of small charities report being at the earliest stages of digital maturity. Many are still trying to get the basics in place. This divide is growing. It affects service design, delivery, measurement, and reach. It affects equity.

AI is one area where this gap is becoming more visible. The Charity Digital Skills Report finds that 76 per cent of charities are using AI in some form, including those with limited digital foundations. This surge in adoption is echoed across sectors. In the workplace, 71 per cent of middle managers report using AI, but fewer than half of employees have received any relevant training. In charities, less than a third feel confident governing AI tools. Many organisations still lack a policy or framework to assess risks, manage data, or evaluate impact. Senior leaders are often expected to provide oversight without the necessary experience. Boards are unsure how to challenge or support new digital activity.

The result is a growing mismatch. Uptake is rising. Readiness is not. Systems are being introduced before teams have the capacity or knowledge to use them well. In some cases, this creates inefficiency. In others, it creates risk.

Transformation fatigue is also becoming more visible. A national study by the Digital Poverty Alliance found that nearly two-thirds of UK workers have experienced burnout linked to ongoing digital change. In charities, where roles are often hybrid and workloads high, the effects are magnified. Many digital leads work alone. Delivery teams are asked to take on new systems while managing day-to-day responsibilities. Training is often under-resourced. Turnover disrupts progress. The pressure to do more, with less, is constant.

This is where ambition collides with reality. Most organisations know what they want to achieve. They want to improve access, modernise systems, and build services around the people they serve. But without investment in leadership, governance, training, and infrastructure, those plans remain vulnerable.

The work that is happening deserves recognition. There are examples of charities building robust supporter journeys, automating routine processes, or improving accessibility. There are councils introducing digital inclusion tools. Some schools are working collaboratively to share training and policy development. But these remain isolated. They are not yet enough to shift the picture nationally.

This year’s data tells us something important. Digital progress cannot be sustained by intention alone. It requires structure, clarity, and collective effort. It also requires realism. Leaders need the space and tools to make informed decisions. Teams need time to learn, adapt, and test. Progress is possible, but only if the right support is in place.

The reports from 2025 are not alarmist but reflective. They point to the same conclusion across every sector: digital transformation is not failing. It is being held back by a lack of readiness. This is not a technical problem. It is an organisational one. It speaks to how change is led, how it is resourced, and how it is experienced by those asked to deliver it.

For charities, the stakes are particularly high. When digital systems fall short in business or government, the consequences might be financial or procedural. In a charity, the result may be that someone in need goes without help. That is the cost of falling behind.

What is needed now is a period of sustained attention. Not more slogans, but careful investment in leadership, planning, and delivery. The digital ambition is there. The next step is to match it with the right strategy to succeed.

Sources:

• The Charity Digital Skills Report 2025
• Transforming for a Digital Future: Government Digital and Data Roadmap, Progress Report 2025
• UK Technology Index 2025 AI and Digital Readiness in Schools: The State of Play 2025 – Ofsted
• AI Adoption and Readiness in UK Workplaces 2025 – CIPD
• Digital Readiness in Local Government: Barriers and Priorities for 2025 – LGA and Socitm
• Digital Burnout: The Hidden Impact of Transformation – Digital Poverty Alliance / Institute for the Future of Work

By Akash Mahmud