Women-founded AI startups secure merely 2% of UK funding.

Researchers argue for urgent attention to and rectification of gender imbalance in technology investment, which predominantly favors males.

A government-backed entity underscores the urgent issue of gender disparity in artificial intelligence (AI) investment. The Alan Turing Institute’s report reveals that over the past decade, female-founded AI startups secured a mere 2% of investment deals. When they do secure funding, the average amount is £1.3 million per deal, significantly less than the £8.6 million raised by all-male founder teams.

The previous year has seen substantial growth in AI software investment, with a Goldman Sachs report projecting global AI investment nearing $200 billion (£166 billion) by 2025. Additionally, a recent Bloomberg report suggests that generative AI could become a $1.3 trillion market by 2032.

Dr. Erin Young, a research fellow at the Alan Turing Institute, highlights the urgent need for equal access to the technology and venture sectors for women and minorities, particularly given the recent surge in interest and investment in AI, especially generative AI. She notes that venture capital firms shape the business models of the startups they support, and their investments often align with their networks and values, influencing the technologies developed. Promoting inclusivity in the venture capital space can play a crucial role in fostering responsible AI design, addressing biases, and encouraging innovation.

The report puts forth recommendations to improve gender balance, encompassing enhanced recruitment practices, monitoring investment strategies, and diversifying the ecosystem.

The demand for generative AI products is increasing, with major tech companies making substantial investments. Microsoft, for example, has reportedly invested $10 billion in OpenAI’s ChatGPT, building upon its initial investment in OpenAI in 2019.

Gender diversity gaps persist across the investment sector, and progress rates for ethnic and racial groups within firms exhibit significant variation.

Instances of bias in AI products have recently surfaced, such as passport checkers displaying lower effectiveness with darker skin tones and the development of tools inadvertently reinforcing gender stereotypes in society.

In 2019, a United Nations agency found that attributing female genders to digital assistants like Apple’s Siri and Amazon’s Alexa contributed to the reinforcement of detrimental gender biases. Consequently, both companies have introduced alternative options.