I recorded this episode with Andrew McNally, who has spent 35 years working across fund management, investment banking and advising family offices. Andrew has witnessed several major technological shifts, including the dot-com boom and bust, and I wanted to hear his view on how today’s AI wave compares.

Andrew spoke openly about the financial implications of foundational technologies. He explained why they trigger significant shifts in wealth and why markets often peak long before society feels the real impact of emergent technologies. In his view, today’s AI technologies are the equivalent of the old Sinclair ZX81 in terms of maturity. He argues there is still a very long way for AI developments to go.

We discussed why many organisations are not yet seeing economic value from AI. Andrew highlighted research suggesting that most companies have yet to achieve measurable benefits. This isn't because the technology is lacking, instead, organisations are not ready. He described AI readiness as a combination of leadership mindset, team culture, data organisation and documented operations.

We explored challenges in the UK funding landscape. Andrew raised concerns about the “valley of death” that UK scale-ups face. This is, in part, due to the longer-term decline in equity investment, the shrinking stock market, the lack of exit opportunities for early investors and the cultural shift away from risk taking. He reflected on the role of the British Business Bank, the Treasury and pension funds in shaping the future of UK capital formation for AI companies.

This is a candid conversation about what needs to change if the UK truly wants to be an AI maker rather than an AI taker. Andrew brings historical insight and financial realism to a debate that often focuses only on the technology.

Listen in if you want a grounded view of how AI adoption links to capital, culture and the long-term health of UK innovation.

Key messages

• Companies need to assess their AI readiness.

• The valley of death for startups is a significant challenge.

• UK capital markets lack large pools of risk capital.

• UK cultural shifts towards risk-taking are essential for growth.

• Creating pools of equity capital is necessary for supporting startups.

Chapters

00:00 AI and Financial Markets

02:45 Historical Context of Technological Shifts

05:53 Current State of AI Technology

09:06 AI Readiness in Organisations

12:07 Funding Mechanisms for AI Startups

15:09 Challenges in UK Capital Markets

18:02 Cultural Shifts in Risk-Taking

20:55 Role of the British Business Bank

24:02 Policy making and Capital Flow

26:47 Future of Financial Markets and AI

30:03 Conclusion and Future Outlook