Key Insights:

• Only 0.7% of venture capital investment in the AI software sector since 2010 has been directed towards women-led start-ups.
• Merely 4% of start-ups in the AI sector are led by women, highlighting a significant gender disparity.
• All-male founding teams dominate the sector, comprising 78% of start-ups and securing nearly 77% of total invested capital.
• The lack of diversity in the AI sector is deemed detrimental, selling both women and the economy short.
• Urgent policy reform is recommended to foster gender diversity, including ringfencing investment capital for women and mandatory reporting of diversity data by investors.

Amidst the flourishing landscape of investment in the AI sector, a recent report underscores a concerning trend: female-led AI start-ups are significantly lagging behind in funding. Published by The Alan Turing Institute on Tuesday, the paper reveals that a mere 0.7% of venture capital investment in the AI software sector since 2010 has been directed towards women-led start-ups.

Furthermore, the report sheds light on the stark gender disparity in the sector, with only 4% of start-ups being led by women. In contrast, all-male founding teams dominate, comprising 78% of start-ups and securing nearly 77% of the total capital invested.

Lead author of the report, Professor Judy Wajcman, emphasizes that this lack of diversity not only shortchanges women but also hinders economic growth. To bridge this gender gap, the report recommends that investors allocate dedicated investment capital for women and underrepresented entrepreneurs in AI. It also advocates for mandatory collection and reporting of diversity data by investors.

Released in conjunction with AIUK, a two-day conference on data science and AI hosted by The Alan Turing Institute, the research underscores the critical need for action in addressing gender inequality in the AI sector.