TLDR:
- Women-led AI startups are being left behind in terms of investment, with only 0.7% of capital invested in the AI software subsector going to startups led by women.
- The lack of gender diversity in AI startups is highlighted in a report from The Alan Turing Institute, urging for policy reforms to prioritize gender inclusivity.
New research from The Alan Turing Institute has revealed that women-led AI startups in the UK are facing a significant gender gap when it comes to investment. The report, titled “Rebalancing Innovation: Women, AI, and Venture Capital in the UK (Second Report)”, analyzed the venture capital put into AI startups by sector and found that only 0.7% of the total capital invested in the AI software subsector since 2010 has been awarded to startups led by women. This amounts to £10.5 billion in total capital invested, with women-led companies accounting for only 4% of the total number of startups in the subsector.
The study also found that all-male founding teams make up 78% of firms in the subsector and have raised 77% of the total capital invested. This disparity is further highlighted by the fact that female-founded AI companies raise on average 6 times less capital per deal compared to all-male founding teams (£1.3 million vs. £8.6 million).
In response to these findings, the researchers are recommending that investors ringfence capital for women and underrepresented founders in AI, collect and report diversity data, and enforce policies like the Investing in Women Code for VC firms. They also suggest that the government and other funding bodies establish mentoring communities and syndicates for women in tech to provide mentorship, education, and networking opportunities.
Dr. Erin Young, a research fellow at The Alan Turing Institute and report author, expressed concerns about the gender disparity in the AI sector, noting that policy reform is needed to promote inclusion and equity. Professor Helen Margetts, director of the public policy programme at the institute, emphasized the importance of gender diversity in technology, stating that a lack of diversity can constrain innovation and economic growth.
Overall, the report highlights the need for greater gender diversity and inclusivity in AI startups to ensure a well-rounded and versatile economy.
