UK startups and scaleups are being urged to address an absence of AI skills within their boardrooms, according to a recently published report
Less than a third (32%) of these startups boast AI expertise at boardroom level, which lags behind the 40% of FTSE 350 largest tech companies that have appointed an AI specialist to the board, states a report from consultant Think & Grow.
The disparity means that these startups could be hampering their own growth potential, suggests the report.
According to Think & Grow, FTSE 350 tech companies with AI expertise generate average revenue of £6.8bn compared to the £953m generated by those companies without AI knowledge.
Similarly, 50% of scaleups with revenue of more than £50m have appointed an AI expert to their board, compared to just 15% of the companies with annual revenue below £50m.
The report does state, however, that efforts to increase AI skills have increased of late. A third (32%) of firms plan to appoint AI specialists to their boards within the next 12 months.
“Companies without AI expertise on their boards risk losing ground to competitors and stifling growth," said Jonathan Jeffries, co-founder of Think & Grow.
“It’s a challenging climate for many sectors but there is huge investor appetite for high-growth tech companies – the issue is that many of those who secure funding are unable to maximise the opportunity to propel growth as they lack key expertise on their boards. AI is transforming business and society – ambitious tech companies won’t fulfil their potential if they don’t embrace it."