The academy says more must be done to encourage young people to develop language skills.
In a report on languages and research, it says poor language skills prevent the UK remaining a "world-class hub of research" and damage the economy.
A seminar to discuss the report is being attended by England's Higher Education Minister David Lammy.
The British Academy report, Language Matters, assesses what impact a decline in modern language skills is having on the UK as a research base.
The report says a lack of language skills means UK researchers are less able to compete with their counterparts overseas.
"In a world of research that is global, these serious shortcomings and deficits undermine the government's objective of positioning the UK as a hub of international research," it says.
Compulsory GCSE
The academy praises the decision by University College London to require all undergraduates from 2012 to have a GCSE or equivalent qualification in a modern language.
Students unable to fulfil this requirement will be required to take at least a half-course unit in a foreign language as part of their degree.
"We believe that other universities should follow this example," the British Academy report says.
"It would encourage those pupils who intend to go to university, but would otherwise have been deterred from language study, to take up language learning.
"And it sends a powerful message to schools about the importance universities place on language learning."
A spokesman for England's Department for Innovation, Universities and Skills said: "GCSE and A-level entry requirements for admission to individual courses is for each university to decide in line with their admissions policies."
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