Family offices utilising AI but currently avoiding investment in the sector

Family offices are increasingly using artificial intelligence (AI) and technology to improve operations and data use, but are avoiding investing in the sector, research from Ocorian has shown.

Its global study of family office members and senior executives found that 86 per cent were using AI to boost their operations and data insights.

However, just 7 per cent of those surveyed were currently seeking investment opportunities in the sector.

The research noted that long-term sentiment on AI investment was stronger, with 74 per cent expecting to increase investment in AI and other digital assets over the next three years.

This included 20 per cent that were planning to ‘dramatically’ increase investment in the sector.

More than a quarter (26 per cent) strongly agreed that AI would reshape how family offices were run and will improve performance, value, and growth over the next year.

However, 72 per cent believed the major impact of AI on how family offices were run will not be felt for between two and five years.

“Family offices are gradually adopting AI and technology as part of their operations and are particularly using it for data insights,” said Ocorian commercial director UK & Channel Islands, Michael Harman.

“However, adoption of AI is still in its early stages across the sector, and most are not currently investing.

“There is a realisation that it will have a major impact and family offices need to start exploring the sector and will need support in making the transition.

“In the meantime, we are working with our family office clients – including those who may choose not to adopt AI directly – so they can still get the outcomes they want, without having to take on the implementation and associated risks themselves, as we take significant steps towards adopting AI as a service provider.”

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