Part 4: Technology and AI: The New Frontier for Global Family Offices
Family offices in 2025 face a pivotal shift as digital transformation becomes essential for efficiency, control, and competitive advantage. Once reliant on spreadsheets, these discreet, traditionally conservative investment entities are now embracing next-generation software, artificial intelligence (AI), and automation at unprecedented levels.
From Spreadsheets to Smart Platforms
In 2021, 43% of family offices managed operations with Excel. By 2025, this has dropped to 13%, while 40% have adopted integrated platforms offering portfolio consolidation, real-time analytics, and automated compliance. The Simple Family Office Software and Technology Report 2024 reveals that nearly half are launching new digitisation strategies this year, enabling faster and more informed investment decisions.
Artificial Intelligence: Strategic Edge
According to Citi’s Global Family Office Report 2024, 53% of family offices already invest directly in AI, with another 26% considering it. Europe, the Middle East, and Africa lead prioritisation, with only 12% not focusing on AI.
Operational uses include research, scenario modelling, sentiment analysis, reporting, and client communications. Over half deploy AI sentiment tools, and 81% integrate alternative data such as satellite imagery or weather trends.
AI is also emerging in succession planning and next-generation education, though most offices stress its role in complementing, not replacing, human judgment.
Cybersecurity: Protecting Digital Wealth
The rise in tech adoption increases exposure to cyber threats. Only 40% of family offices have full protections, rising to 68% among those managing over USD 1 billion. JP Morgan and UBS data show a 60% improvement in defences over the past year, with 25% reporting breaches or fraud attempts. Best practices include multi-factor authentication, encryption, penetration tests, and specialist provider partnerships, supported by staff training and response protocols.
Technology as an Asset Class
Family offices are investing directly in tech sectors, particularly AI and climate tech, to drive returns and hedge against disruption. Green tech leads sustainability strategies for 30%, while 42% see sustainable investing as commercially compelling.
Bridging the Gap
Barriers remain in expertise and awareness, with 57% citing skills shortages. Responses include targeted hiring, adviser engagement, and tech education. Industry consensus favours a hybrid model — blending innovation with human stewardship — positioning technology as a trusted ally in wealth preservation
Get In Touch
For more information please contact Michael Velten.
michael@veltenadvisors.com
+6590687547
37 Ann Siang Rd, Singapore 069715
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