PwC report shows that Generative AI is fueling a revival in family businesses

Enrique Hinojosa, a fourth-generation leader of a family-owned business, Welldex Logistics in Mexico, emphasized the challenge of changing the culture of a business to align with new challenges, particularly in a family-owned and operated enterprise. The difficulties associated with digital transformation in family businesses were further underscored by the survey findings, which highlighted a lack of optimism and understanding among current generation leaders regarding the readiness and potential of AI.

Family businesses play a crucial role in the global economy, accounting for nearly 70% of global GDP and serving as significant employment generators. The responsibility of the NextGen leaders as future business owners goes beyond staying competitive and extends towards shaping the global economic landscape. PwC emphasized the importance of responsibly harnessing the potential of generative AI to benefit society, the environment, employees, families, and businesses alike.

The PwC report contrasted the cautious nature of current generation leaders with the more innovative mindset of NextGen leaders when it comes to embracing new technologies like AI. While a significant portion of family businesses have yet to explore or have prohibited the deployment of AI, a small percentage have started to implement it in some parts of their businesses. This disparity in adoption highlights the varying approaches to innovation between the two generations.