Published on April 16, 2024, 8:30 am

The emergence of the next generation in family businesses signals a shift towards embracing the transformative potential of Generative AI (GenAI), despite facing resistance from current leaders, as reported by PwC. A global study involving over 900 NextGen individuals reveals their enthusiasm for integrating AI into family businesses to drive innovation and reshape operations.

The survey uncovered that a substantial 73% of NextGen leaders recognize GenAI as a catalyst for change, emphasizing its capability to revolutionize business practices. However, concerns linger regarding the incumbent leaders’ capacity to leverage this technology effectively.

NextGen leaders express a more optimistic outlook on GenAI compared to current executives but emphasize the necessity of integrating AI across their organizations for widespread adoption. This sentiment aligns with global CEO perspectives, where 70% foresee significant transformations due to AI’s influence on future businesses.

Despite recognizing the potential of digital transformation, NextGen leaders remain cautious about existing decision-makers’ ability to grasp the full extent of AI’s benefits. The transition towards embracing AI in family businesses poses unique challenges, particularly in shifting organizational culture and aligning with new technological demands.

According to industry reports, family businesses constitute a substantial portion of global GDP and employment opportunities. Harnessing GenAI presents not only a competitive advantage but also contributes to shaping the broader economic landscape on a global scale.

Looking ahead, as stewards of an impending wealth transfer and societal responsibilities, NextGen leaders are urged to navigate the evolving landscape of generative AI responsibly. While some family businesses exhibit reluctance towards adopting new technologies like AI, there is growing openness towards private equity investments as part of adapting to changing investment trends.

As family businesses straddle tradition and innovation, proactive steps are recommended to accelerate digital transformation and AI integration. With NextGen leaders gearing up to lead the way in leveraging GenAI’s opportunities, it becomes imperative for family enterprises to embrace this digital evolution while balancing urgency with prudence in implementation strategies.

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