Insights for Organisations Artificial Intelligence

Why are women leaving the technology industry?  

Skills Lab Team
13 October 2026 Published: 13.10.26, Modified: 13.10.2026 09:10:09

Only 21% of the technology workforce are women, and the latest Gender Snapshot 2026 shows that they make up around 22% of artificial intelligence professionals globally and hold fewer than 14% of senior AI leadership positions.

Yet women across the sector are developing products, leading teams, tackling complex challenges and shaping the innovations that are transforming our world.

So why, when it comes to promotions, leadership positions and career opportunities, does progress so often return an ‘Error 404’?

Women are leaving the industry not because they lack the ambition or ability to succeed, but because too many barriers continue to hold them back. At the current pace, it will take 122 years to close the economic gender pay gap.

The Lovelace Report estimates that the technology industry loses between £2 billion and £3.5 billion each year because of ineffective career frameworks that push talent out of the sector, with women disproportionately affected.

Women in technology don’t need acknowledgement of the problem, but tangible access to the skills, networks and opportunities that enable them to progress.

Why are women leaving the technology industry?  

Each year, 40,000 to 60,000 women leave UK tech roles, citing lack of progression, recognition, and equitable advancement as major factors.

A missing middle exists between early success and executive leadership, where capable, high-impact professionals are often overlooked, under-recognised, or disconnected from opportunities for advancement.

Women in mid-career roles are central to delivery, collaboration, and execution. They build relationships, bridge technical and commercial teams, and drive initiatives forward. Although these are critical leadership skills, they are rarely recognised as leadership experience.

As a result, positions focused on partnerships, operations, or ecosystem building are frequently overlooked, despite their strategic importance.

At FDM, we’re dedicated to championing women in STEM and revolutionising the technology industry.

How is the changing technology landscape affecting women? 

Women made up only about 13% of new hires in AI roles in the last year, compared with 50% of new hires in non-AI roles, according to a recent report from LinkedIn.

FDM’s Chief Operating Officer Sheila Flavell CBE, believes, “AI should benefit the whole workforce, not just some groups. Women need routes back into work, they don’t lack ability; they lack a route in and permission to take it.”

Rachel Seftel, Head of Research and Impact at the Cherie Blair Foundation for Women, and the author of the foundation’s recent report “Adopted, not Embedded”, shares, “82% of women were already using AI in their businesses, compared to 38% twelve months ago. So, the conversation isn’t so much about adoption anymore. We’re moving from access and awareness to skills, trust, risk, integration, product fit.”

Privacy and security concerns are one of the main barriers to deeper AI use, and most women use AI whilst holding real reservations about it.

She also shares, “About a third of women in our sample said that they fully trust AI, which means that two-thirds either partially trust it or only slightly trust it.

The reason that they’re using it is that it saves them time, and they have made a calculated decision that the time savings are sufficiently valuable to start using AI, even though they’re not so sure about the safety.”

Over time, these experiences can affect motivation, engagement and confidence in future opportunities. For employers, understanding what’s holding people back from adopting new ways of working is an important first step towards creating an environment where employees can thrive.

How can companies retain more women in technology?  

If companies increase the number of women in the tech workforce to about 45%, or an estimated 3.9 million additional women by 2027, it could close this talent gap and result in a GDP increase of as much as €260 billion to €600 billion.

Employers can improve women’s retention by combining professional development with transparent career pathways, fair progression processes and inclusive workplace practices. They can:

Establish clear career progression frameworks

Define what advancement looks like at each level, including the skills, experience and performance expected. Communicate promotion criteria clearly and provide regular career conversations so employees understand their options and what they need to do to progress.

Provide access to training and development

Ensure women can access technical training, professional qualifications and development opportunities in areas such as artificial intelligence, cybersecurity and data. Training should be accompanied by practical opportunities to apply new skills, contribute to meaningful projects and demonstrate expertise.

Make promotion and pay decisions transparent

Use consistent, clearly communicated criteria to assess performance and potential. Review promotion rates and pay across comparable roles and levels to identify disparities, then investigate and address any patterns that emerge.

Build an inclusive workplace culture

Encourage managers to recognise contributions fairly, challenge inappropriate behaviour and create opportunities for employees to participate in important discussions and decisions. Inclusion should be reflected in everyday management practices, not just formal policies.

Hold leaders accountable for progress

Make responsibility for inclusion and career development part of management practice. Set meaningful objectives, review progress regularly and ensure leaders have the support and resources needed to deliver improvements.

When employees can see a clear route forward, access the support they need and have confidence that their contributions will be recognised, they have stronger reasons to build their careers within the organisation.

Discover how FDM helps organisations address technology skills gaps through talent development and access to skilled professionals.

Explore FDM’s services.

Why does retaining women in technology matter for businesses?  

Retaining women should be a business priority for an industry that depends on specialist skills, experience and innovation.

When employees leave, organisations can lose technical knowledge, established working relationships and valuable experience. Replacing that expertise requires time and investment, while new employees need opportunities to build their understanding of the business.

There is also a longer-term consideration. As AI and other emerging technologies transform how organisations operate, businesses need people to identify risks and bring different skills to solve problems. Understanding how organisations can develop the skills required for this changing landscape is equally important.

Explore FDM’s Workforce 2.0 report on AI adoption and the future of jobs for further insights into the evolving technology workforce.

A diverse workforce does not automatically guarantee better innovation, but ensuring that women contribute to technical development and leadership decisions broadens the range of experiences and perspectives represented.

Understanding the gender pay gap  

Our latest gender pay gap report provides an opportunity to reflect on representation and pay across our UK workforce.

Our findings show a median gap of -6.9%, in favour of women compared with the UK average of 10.7%. However, gender pay gap reporting is about more than a single figure. It also provides an opportunity to consider how women are represented across different pay levels and what organisations can do to support long-term career progression.

What can organisations do to drive meaningful change?

  • Create opportunities: Open pathways into technology for people from diverse backgrounds and experiences.
  • Support progression: Invest in training, development and opportunities that enable women to advance throughout their careers.
  • Build inclusive workplaces: Foster cultures where people feel supported, valued and able to contribute.
  • Keep the conversation going: Use data and employee experiences to identify barriers and inform action.

Discover more in our gender pay gap report.

Summary 

The technology industry cannot afford to focus solely on attracting women into the workforce while overlooking the reasons they leave.

Attracting, engaging and retaining women in technology requires organisations to be proactive. The question is no longer simply how to encourage more women to enter technology. It is what employers are doing to ensure they can stay, succeed and lead.

At FDM, creating those opportunities has always been central to what we do, whether through our Graduate Programme, Returners Programme or wider efforts to build a more inclusive technology sector.

If you’re looking to hire and retain the top female talent, check out FDM’s consultant services or get in touch for more information.

Yes
No