How not-for-profits can embrace AI and digital transformation: insights from our leadership event at Which?

The event brought together people from charities, public sector bodies and third sector organisations for a day of discussion, connection and practical learning, all focused on the unique challenges the sector faces and the role technology can play in overcoming them.

AI in the charity sector: how to adopt it responsibly

One of the major conversations of the day centred on AI adoption in HR for charities, a topic that can feel both exciting and daunting. Many HR leaders in the third sector sit between two pressures: the expectation to modernise and improve efficiency, and the responsibility to protect fairness, trust and human-centred decision making.

During his session, Danny Greenwood, MHR’s AI/API Transformation Lead, explored this reality in depth. He highlighted that while AI has the power to streamline administrative work, surface insights and support better decision-making, it must be adopted carefully with the right governance and human oversight in place.

Key messages included:

• AI should augment, not replace, people
• Human-in-the-loop (HITL) is non-negotiable for decisions that affect employees
• Clear governance empowers safer experimentation
• Charities must set boundaries for where AI can and cannot be used
• Trust is protected through transparency and explainability

In a sector built on purpose and public trust, this approach is essential. AI in not-for-profits should support teams, not undermine the values that define them.

A real-world example: Shaftesbury’s transformation journey

One standout moment from the event was Shaftesbury’s story – a charity with over 180 years of social impact supporting children, young people and adults with disabilities. Their leadership team shared a powerful account of organisational transformation driven by clarity, simplicity and people-first thinking.

Their journey reflects the wider financial pressures facing the charity sector today. Through an approach rooted in “Thinking Differently” and simplifying operations, the charity was able to shift from a significant deficit to a £7 million surplus and a turnover close to £70 million, a remarkable demonstration of financial resilience and strategic leadership.

At our event, the Shaftesbury team explained how partnering with MHR and adopting the People First platform supported their transformation, helping them:

• Strengthen workforce visibility
• Improve manager and employee confidence through self-service service
• Reduce HR and payroll admin
• Support sustainable financial decision-making
• Improve overall employee experience

This illustrated the real-world impact of modern HR and payroll systems for charities – especially when simplicity and usability are prioritised. You can find out more about Shaftesbury’s transformation here.

How People First supports digital transformation for charities

Throughout the event we showcased how People First, our unified HR, payroll and finance platform, is designed to meet the specific needs of third sector organisations.

For charities looking to streamline processes, improve compliance and enhance visibility across their workforce, People First offers:

• Simplified HR and payroll processes for charities
• Robust governance tools, supporting safe and responsible use of AI
• Integrated data, enabling better reporting and decision-making
• Self-service capabilities that empower managers and staff
• Scalability, ideal for growing or multi site organisations
• Reduced admin, freeing up time for mission-critical work

As highlighted in the event, People First enables digital transformation that feels intuitive, not overwhelming.

Looking ahead: join us at the World of Work event in September

For those who couldn’t attend the event at Which?, we hope this recap provides useful insight into the conversations shaping the future of HR and payroll for charities and not-for-profits.

If you're interested in exploring how MHR can support your organisation, whether through HR and payroll software for charities, responsible AI adoption, or digital transformation consultancy, our team would be delighted to continue the conversation.

And if you’re looking for your next opportunity to connect with like-minded charity leaders, don’t miss our World of Work event this September, our flagship gathering exploring the future of work and the technologies shaping it.