Mar 24: Family offices are increasingly using AI and technology to boost operations and data use but are avoiding investing in the sector, new research* from Ocorian, the specialist global provider of services to high-net-worth individuals and family offices, financial institutions, asset managers and corporates, shows.
The global study among family members and senior executives working for family offices with total wealth of $119.37 billion found 86% are using AI technology to improve their operations and data insights.
However just 7% questioned in the study in 16 countries or territories including the UK, US, UAE, Singapore, Switzerland, Hong Kong, South Africa, Saudi Arabia, Mauritius and Bahrain are currently seeking investment opportunities in the sector.
That is likely to change rapidly over the next three years with nearly three out of four (74%) expecting to increase investment in AI and other digital assets, including 20% planning to dramatically increase investment in the sector.
Around a quarter (26%) strongly agree that AI will reshape how family offices are run and will boost performance, value and growth in the next year.
However, 72% believe the major impact of AI on how family offices are run will not be felt for between two to five years.
Michael Harman, Commercial Director UK & Channel Islands at Ocorian said: “Family offices are gradually adopting AI and technology as part of their operations and are particularly using it for data insights.
“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.”
Ocorian’s award winning dedicated family office team provides a seamless and holistic approach to the challenges and opportunities families face. Its service is built on long-term personal relationships that are founded on a deep understanding of what matters to family office clients. Its global presence means Ocorian can provide bespoke structures and services for international families no matter where they live.
Key services include formation and administration of family offices, HR support services, support with lifestyle and luxury assets, family governance, resident and relocation services and specialist support with immigration, visas, payroll, marine and aircraft crew management and financial reporting.
