Building Investable Businesses Through Innovation

The Welsh business landscape has long been one of resilience and innovation, but as we move through 2025, the pressure to stay competitive is intensifying.  

Businesses across the country are grappling with productivity challenges, and I firmly believe that embracing technology is the key to addressing these issues. Those who leverage emerging tools like artificial intelligence (AI) to streamline operations and drive efficiency will not only survive but thrive. 

At Butterfly Data, I see how AI and other technologies can transform productivity. AI, for example, offers the potential to automate time-consuming manual processes, freeing up resources to focus on growth. Simple tasks like data entry or system integration – those frustrating, repetitive jobs that can drain resources – can now be automated, reducing errors and enabling businesses to redirect their attention to strategic objectives. These changes might seem incremental, but they can collectively provide a significant edge. 

This isn’t just about keeping up; it’s about outpacing the competition. Businesses that adopt these technologies will not only cut costs but become more profitable and attractive to investors. As a lead investor with Women Angels of Wales, I see many businesses with incredible potential struggle because they lack the tools to scale effectively. Technology can close this gap, making Welsh businesses more investable and better positioned to succeed in today’s fast-evolving economy. 

However, technology alone is not the answer. It must be underpinned by robust, accurate data. Too often, I encounter businesses attempting to implement machine learning or AI without the proper foundations. Incomplete or inaccurate data can lead to unreliable outcomes, undermining even the most sophisticated algorithms. It’s essential for leaders to recognise the importance of clean, well-structured data as the backbone of any technological endeavour. 

One example I often share involves retail businesses looking to predict trends based on social media activity. Without historical data linking social trends to sales outcomes, these predictions are mere guesswork. Worse still, creating synthetic data to fill the gaps can lead to misleading results. Inaccurate models don’t just fail – they actively harm decision-making. That’s why businesses need to invest in their data infrastructure now, ensuring they have the insights required to make meaningful progress in the future. 

The rise of hyper-personalisation in customer engagement is another area where technology can shine. AI-driven segmentation allows businesses to create tailored marketing strategies for thousands of individual segments, rather than relying on broad demographic categories. This kind of precision not only improves customer satisfaction but can also increase revenue. However, as we move forward, regulators must ensure these technologies are used responsibly, addressing potential risks and protecting consumers. 

One of my concerns is the current hype cycle surrounding AI. Many businesses are attaching the term “AI” to their offerings without substance to back it up, reminiscent of the dotcom bubble. While genuine innovations exist, it’s vital to approach claims critically and ensure that the solutions being implemented are both credible and effective. I believe we’re at the peak of this hype, and as realism sets in, the truly transformative applications of AI will emerge. 

Finally, it’s essential to recognise the role of collaboration in this journey. Welsh universities, for example, play a critical part in equipping the next generation with the skills needed to drive these changes and create enough employees of the future to empower our Welsh start-ups and scale-ups. 

For Welsh businesses, the message is clear: embrace technology, invest in your data, and seek opportunities to collaborate. The productivity gains on offer are too significant to ignore, and those who act now will reap the rewards of a more competitive and prosperous future. 

Finally, if you’re a female founder then please do come and talk to us at Women Angels of Wales. We can help to turn your plans in to reality.