UK startups and scaleups are being urged to address a shortage of AI expertise within their boardrooms, according to a recent report.
Less than a third (32%) of these startups have AI skills at the board level, compared to 40% of the largest FTSE 350 tech companies, which have appointed AI specialists to their boards, as noted by consultant Think & Grow. This gap may hinder the growth potential of these startups.
Think & Grow reports that FTSE 350 tech companies with AI expertise generate an average revenue of £6.8 billion, while those lacking AI knowledge generate approximately £953 million. Moreover, 50% of scaleups with revenues exceeding £50 million have appointed AI experts to their boards, in contrast to just 15% of companies with annual revenues below that mark.
The report also highlights a growing awareness of the need for AI skills, with a third (32%) of firms planning to appoint AI specialists to their boards within the next year.
“Companies without AI expertise on their boards risk losing ground to competitors and stunting growth,” said Jonathan Jeffries, co-founder of Think & Grow. “In a challenging climate for many sectors, there is significant investor interest in high-growth tech companies. However, many of those securing funding struggle to capitalize on opportunities due to a lack of essential expertise on their boards. AI is transforming business and society – ambitious tech companies won’t reach their full potential without embracing it.”