From Mira Murati to Fei-Fei Li, sometimes it seems as if women are at the forefront of the most cutting-edge work in AI. But are these leaders an exception, and are women actually falling behind in the category? Who’s actually determining its future?
A new report from the office of California First Partner Jennifer Siebel Newsom crunched the numbers. Among the many studies that flood my inbox, this one immediately caught my eye.
The state is home to 32 of the world’s 50 leading AI companies, from OpenAI and Anthropic to the next wave of smaller startups. It has taken up the responsibility of regulating this emerging technology before the federal government does—and after missing out on doing so during the rise of social media. Siebel Newsom has in the past focused on board diversity in the state.
So this new report, in partnership with Crunchbase and the group Illumyn Impact (formerly Him for Her), analyzed the boards of 140 of the most well-funded AI companies with California headquarters. It raises the question: who is governing the AI startups that will shape the future of humanity? And, as we know, governance has been a key issue at the top companies in the field—most famously, OpenAI.
The report’s key findings:
– Women make up 15% of the boards of private AI companies in California.
– More than 40% of the state’s private AI company boards have zero women directors.
As AI startups scale, board-level gender diversity improves. With between $50 million and $99 million in funding, AI companies have 9% women directors. With more than $100 million in funding, that jumps to 19%.
The same pattern holds for the existence of all-male boards. Between $50 million and $99 million in funding, 62% of AI companies have all-male boards. With more than $100 million in funding, that drops to 32%.
Often at that stage, AI startups are bringing in additional expertise beyond the technical—more operational and commercial knowledge, which may be when they add women directors with backgrounds in related fields. Though not the board level, we saw a version of this play out at OpenAI when it hired former Instacart chief and Meta advertising exec Fidji Simo as CEO of applications.
Private companies still lag behind public companies on board diversity (although recent trends show public companies falling behind again too). AI companies are overwhelmingly private, beyond the tech giants. And the same behaviors and structures that have held back board diversity elsewhere apply in AI. Women are underrepresented as investors and founders, and those groups hold the majority of board seats for private companies. And boards often fill open seats relying on their immediate networks, which can be limited.
“The data reveals a significant opportunity to increase the representation of women in a sector that will redefine our world, economy, and culture at scale,” Siebel Newsom wrote.
I found these results to be pretty stark. For our readers in AI, does this match what you’re seeing? Do any of these findings surprise you? I’d love to hear what you think.
Emma Hinchliffe
emma.hinchliffe@fortune.com
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PARTING WORDS
"I have to just remind myself that kids’ lives are more important than my reputation, or something that I might read that’s painful."
— Ms. Rachel, or Rachel Accurso, on her advocacy for children in Gaza. She's one of Glamour's Women of the Year.
