British companies that fail to invest in artificial intelligence soon are at risk of losing 20pc of their cash flow, McKinsey has warned.

New figures claim that AI could boost the UK economy by 22pc in the next decade by making companies more productive, and fast-moving businesses could stand to grow in value by 120pc if they invest in AI tools.

A new report produced by the consultancy's business and economics research arm McKinsey Global Institute has claimed the UK is "potentially more AI-ready compared with the global average", but could miss out on the opportunity if investment does not occur.

"The United Kingdom has impressive pockets of innovation but is failing to scale to business more broadly," the report stated.

It cited DeepMind, which was bought by Google for £306m in 2014, and Magic Pony, which was taken over by Twitter in a £102m deal in 2016, as examples of these pockets.

Companies can achieve growth through AI by offering it at scale, investing in talent and forging links between cutting-edge research and commercial success, the report claimed.

Businesses such as Ocado, which has invested in automated warehouses run by swarms of robots, or software giant Sage are among the companies heavily investing in the technology.

One of the main obstacles for AI growth in the UK is a so-called "brain drain" as Silicon Valley raids top universities for talent, a phenomenon that is repeated across Europe.