Small and Medium-sized Enterprises: AI Sector

Baroness Nargund Excerpts

Thursday 29th October 2026 Lords Chamber

[Lord Leong (Lab)]

I agree with the noble Lord. That is why the British Business Bank has £25.6 billion in financial capacity to support smarter and smaller businesses, including £4 billion in growth capital specifically for innovative research-intensive companies. The sovereign AI fund works alongside the bank, including co-investing in a company called Ineffable Intelligence, a London-based artificial intelligence research lab. Meanwhile, the National Wealth Fund, with £27.8 billion to deploy, is mobilising private investment in AI infrastructure, including a guaranteed £202 million to support various AI companies.

[Baroness Nargund (Lab)]

My Lords, I draw the House’s attention to my interests as set out in the register. I too welcome the investment in AI in yesterday’s Budget. AI presents a significant opportunity for businesses to innovate, attract investment and grow our economy. However, it also risks widening the existing gender gap in skills, pay, innovation, leadership and investment. Our own research found that 43% of young women entering the workforce are concerned that AI will replace them. We also know that only 2% of funding from venture capitalists has gone to all-female founding teams. Can the Minister say what steps the Government are taking, in partnership with businesses, to ensure that women have equal access to AI skills, AI-enabled employment, and opportunities for innovation, leadership and investment?

[Lord Leong (Lab)]

I am very proud to co-chair a women in industry taskforce. I work with women leaders every day to encourage them to start their businesses, especially in tech. I am sure my noble friend will appreciate and welcome yesterday’s Budget, in which the Chancellor said that he will work with the Women in Tech Taskforce to find ways that women founders can access available finance. If we empowered women in tech in the same way as men, it would generate £300 billion for the economy. We must support women tech founders.