Enrique Hinojosa, a fourth-generation leader of a family-owned business, Welldex Logistics in Mexico, mentioned in a report that the most challenging aspect of digital transformation is changing the culture of the business to align with new challenges. This is especially difficult in a family-owned and operated enterprise, where traditional ways of doing things may be deeply ingrained.

The survey findings supported Hinojosa’s sentiment, indicating that current generation leaders in family businesses are less optimistic about the business’s readiness for change and doubt the full potential of AI. According to Scott Likens, global AI and innovation technology leader at PwC US, the benefits of AI for family businesses include improved products and services, faster time to market, improved decision-making, and higher profits.

Family businesses play a significant role in the global economy, with nearly 70% of global GDP attributed to them. They are also major employers, contributing to 60% of the world’s workforce. Therefore, leveraging the potential of generative AI is not just about one company staying competitive but also about shaping the global economic landscape, as highlighted in the PwC report.

NextGen leaders, who are the future owners of family businesses and beneficiaries of the largest wealth transfer in history, have a responsibility to society, the environment, employees, families, and businesses. This responsibility includes navigating the challenges and opportunities presented by generative AI in a responsible manner.

The report also compared the attitudes of NextGen leaders to current generation leaders in family businesses towards innovation. It found that current generation leaders are more cautious when it comes to adopting new technologies like AI. Only a small percentage of family businesses have implemented AI, with many either not exploring it or prohibiting its deployment altogether.