UK pension funds are sitting on the sidelines of the artificial intelligence investment surge, according to Dame Anne Glover, chief executive and co-founder of Amadeus Capital Partners. Speaking at PEI Group's London offices during the latest PEI Presents session, Glover warned that conservative portfolio allocations are costing British investors significant returns.

The venture capital veteran argues that pension schemes have become overly cautious, favoring safe government bonds and established equities over growth-oriented private market strategies. This risk-averse approach leaves them exposed to opportunity costs as technology sectors, particularly AI-driven businesses, deliver outsized performance. Glover's firm specializes in early-stage technology investments, giving her direct visibility into the returns now flowing to bolder investors.

British pension funds collectively manage over £2 trillion in assets, yet their average allocation to venture capital remains minimal compared to counterparts in the United States. The trend reflects regulatory constraints and fiduciary concerns that prioritize capital preservation over growth potential. Glover suggests policymakers should reconsider incentives to encourage more balanced portfolio construction.

The message carries weight given Amadeus Capital's track record in technology investing. Without increased exposure to private markets, UK pension funds risk permanent underperformance relative to inflation and the broader economic transformation underway.