Data Science Investment Counter —Funding raised by UK data science companies in 2018.
£ 5.640 Million

UK companies that don’t invest in AI could lose 20 per cent cash flow

British companies not investing in artificial intelligence (AI) may risk losing 20 per cent of their cash flow, according to a new report by the McKinsey Global Institute.

As reported by The Telegraph, the new figures show AI could boost the UK economy by 22 per cent in the next decade and substantially increase companies’ productivity.

Highlighting the strength of the UK’s technology sector, the report said the country is “potentially more AI-ready compared with the global average”, but could lose the opportunity if investment in the industry does not happen.

“The United Kingdom has impressive pockets of innovation but is failing to scale to business more broadly,” the report added.

Among the companies quoted in the document are London-based AI giant DeepMind, which was acquired by Google in 2014 for £306m and Magic Pony, bought by Twitter for £102m in 2016.

The report also suggested for companies to leverage their AI efforts by investing in talent, offering it at scale, and creating links between academia and commercial applications of the technology.

An example of this creative mindset would be online-grocery company Ocado, the report claimed, because of their recent investments in automated warehouses operated by swarms of robots.

According to the new data, the AI gap between Europe and the US has already widened by 20 per cent in the past three years, with Asia also rapidly growing its AI sector.

Last October, Chinese tech-giant Tencent urged European companies to leave high-risk AI to the US and China because of their superior AI research applications, and earlier this year Niti Aayog proposed a $1B plan for AI development in India.

To keep up with global AI developments, the  UK Government pledged to make the country an AI research “hotspot” after investing £300m in the sector last year, assessing a potential boost to the UK economy of £232bn. 

Image via Pixabay and Wikipedia.

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