Despite significant speculation on how AI is set to reshape the UK economy and transform how companies operate, its potential impact on corporate governance has so far received little serious consideration.
However, adapting governance to suit the AI era could provide a new growth lever for UK tech scale-ups. This is an area that ambitious companies should be exploring yet many boards of innovative UK companies appear to be overlooking the potential to secure a competitive edge. Our latest research, for example, shows that less than a third (32%) of UK tech scale-ups have AI expertise on their boards, compared with 40% of FTSE 350 tech firms.
While many things about the next 12 months are uncertain, global economic instability and rapid technological change are likely to remain front of mind for most UK businesses. Failing to promote board-level AI expertise could weaken their ability to navigate these challenges effectively.
The next wave of technological transformation is already underway. Recent multi-billion-pound investments in the UK data’s infrastructure by Microsoft, Nvidia and Alphabet will play a key role in reshaping the economy.
Companies that evolve all aspects of their operations – including their governance structures – to meet this change will be best placed to harness the growth opportunities it provides.
The Growth Engine
Given that tech scale-ups thrive on agility and disruption, it is surprising that so many are yet to embed AI expertise at board level.
Bringing AI literacy into the boardroom could become a key growth driver for scale-ups. Our research, for example, illustrates a strong link between board-level AI expertise and financial performance. Among UK scale-ups with annual revenues above £50 million, around half have AI expertise on their boards, compared with just 15% of smaller firms.
A similar pattern exists among larger, listed companies. FTSE 350 technology firms with board-level AI expertise generate an average of £6.8 billion in annual revenue, compared with £953 million for those without it.
There are many possible explanations for this, but one clear factor is that AI expertise supports more effective capital allocation. Many companies are successful in raising capital, with figures from HSBC Innovation Banking UK and Dealroom showing that UK start-ups and scale-ups have already secured more than £13 billion in venture capital funding this year, including almost £7 billion in the third quarter of 2025 alone – but the key is how they effectively utilise these funds.
Ultimately, how this capital is deployed determines whether a company reaches its true potential.
Companies with strong board-level AI capabilities are able to make smarter investments that streamline operations, generate real-time insights and accelerate growth at a pace that would otherwise be impossible.
Many UK scale-ups are already responding to this reality. Half (51%) of technology business leaders we surveyed said their boards had recruited AI specialists in the past 12 months, and a further 30% plan to do so in the year ahead.
Simply put, companies that fail to follow suit risk losing momentum and falling behind their competitors.
Meeting the Challenge of Today
Today’s market reality requires a rethink of the skills and capabilities that UK scale-up boards bring to the table.
Our research shows that AI and technological change is now the most commonly cited challenge among UK tech business leaders. Over a third (35%) listed this as a top concern for 2026 and beyond, slightly ahead of competition (34%), economic unpredictability (32%), regulation (32%) and labour shortages (32%).
Managing the risks associated with AI is, of course, vital. Companies must consider how best to upskill staff and train future talent. However, those that view AI only as a threat rather than a strategic tool risk inadvertently limiting their ability to tackle other challenges.
When used effectively and guided by board-level expertise, AI can streamline compliance, automate functions and ease regulatory or workforce pressures. Ignoring these opportunities means becoming reactive to technological change instead of using it to drive progress.
AI expertise at board level enables better-informed decisions about risk and opportunity, ensuring technology is applied safely, ethically and strategically.
The ability to strike an appropriate balance between risk and opportunity will soon define competitiveness as much as access to capital or talent.
Adapting Corporate Governance to the AI Era
Beyond specific skills, adapting to AI requires a broader re-evaluation of how UK scale-ups approach governance.
Quarterly meetings and long-term strategies remain necessary for good governance, but they are no longer sufficient. AI is transforming the business environment at a speed that demands a more data-driven, agile and engaged approach. Boards should not be seen merely as oversight bodies, but as active strategic partners capable of responding to change in real time.
Three in ten (31%) of UK and European directors now believe that hands-on operational support is one of the most valuable board functions. The most effective boards today are those that are actively involved and operationally engaged.
Embedding AI expertise, both by appointing at least one AI specialist and ensuring all board members possess a basic level of AI literacy, will enable boards to interpret data more effectively and make confident, well-informed decisions.
Moments of major change have always forced leaders to acknowledge that past approaches do not always fit new realities. The same is true today.
Boards that engage closely with executive teams and combine diverse expertise with adaptive thinking and AI insight will be best equipped to guide their organisations responsibly and strategically through volatility.
Governance for the Long-Term
AI has already redrawn the boundaries of innovation and competition. The challenge now is whether UK scale-ups can reshape their governance structures to match this new landscape.
Boards that combine agility and engagement with AI intelligence will help their companies navigate uncertainty with clarity and purpose. The leaders of the next decade will not simply use AI as a tool, they will integrate it into their governance from the top down, ensuring that innovation and oversight evolve hand in hand.
