Key Takeaways:
- 78% of family offices plan to invest in generative AI within two to three years.
- US family offices lead with 83% planning AI investments.
- Shift in asset allocation towards North America and Asia-Pacific expected in five years.
What Happened?
Artificial intelligence (AI) has emerged as the top investment theme for family offices, according to the UBS Global Family Office Report 2024. An impressive 78% of family offices plan to invest in generative AI within the next two to three years. This trend is even more pronounced in the US, where 83% of family offices are likely to invest.
The survey, which included 320 family offices representing families with an average net worth of $2.6 billion, underscores a significant shift towards active management and a focus on sustainability.
Why It Matters?
Why should this catch your eye? AI investments by family offices signal a strong vote of confidence in the technology’s future potential. The US, leading the global AI revolution, stands to benefit significantly as family offices pour capital into homegrown tech companies.
According to George Athanasopoulos and Benjamin Cavalli of UBS, family offices are not just following trends but are actively rebalancing their portfolios to accommodate these new investments. This shift indicates a broader market trend towards prioritizing advanced technologies and could drive significant growth in the AI sector.
What’s Next?
Expect family offices to continue rebalancing their portfolios, with increased allocations to North America and Asia-Pacific. Over the next five years, more than a third of respondents plan to boost their investments in these regions. Alongside AI, other key investment themes include healthtech and automation, with 70% and 67% of family offices, respectively, showing interest.
As commercial real estate prices correct, expect allocations in this sector to decline. Watch for increased focus on sustainability and geopolitical stability as family offices navigate these new investment landscapes.
Family offices’ growing interest in generative AI and other advanced technologies highlights a crucial trend: the increasing alignment of high-net-worth individuals with cutting-edge innovations. This alignment could drive substantial market shifts and present lucrative opportunities for savvy investors.
