Family offices boost tech and caution as generational wealth transfer and market uncertainty accelerate
Artificial intelligence (AI) is rapidly transforming the landscape for North American family offices, as they navigate an era defined by accelerated generational wealth transfer and heightened economic and geopolitical uncertainty.
The 2025 North America Family Office Report, produced by RBC and Campden Wealth, reveals that family offices are not only embracing new technologies but also rethinking their investment strategies and succession planning to meet the demands of a shifting environment.
Technology adoption is advancing, particularly in automated reporting and research, delivering gains in efficiency, insight, and decision-making speed.
“Generative AI offers family offices the opportunity to streamline routine processes and enhance staff capacity for higher-value work,” said Manju Jessa, vice president and head of Family Office and Strategic Clients for RBC’s Enterprise Strategic Client Group.
She added that the use of such technology is likely to keep growing, as long as organizations effectively address related risks and manage increased costs.
This year, 69 percent of family offices have adopted automated investment reporting systems, up from 46 percent last year.
Generative AI is now used by 29 percent of family offices for investment reporting and by 30 percent for research, with adoption expected to accelerate as the technology evolves.
Despite the technological shift, the majority of family offices agree that access to experienced investment professionals remains the most critical factor for investment success, whether in-house, external wealth managers, or independent investment committee members.
Investment sentiment has become markedly more cautious.
The survey found that expected returns for 2025 average 5 percent, a significant drop from 11 percent last year.
This year, 15 percent of respondents anticipate a negative outcome, compared to just 1 percent in 2024.
The more conservative outlook is reflected in primary investment objectives: improving liquidity (48 percent) and de-risking portfolios (33 percent).
Cash is seen as offering the best return over the next 12 months, while AI, defence industries, and the Magnificent Seven remain the most popular sectors for public market investments.
Private market investments continue to play a central role, with 88 percent of family offices maintaining exposure to private equity, venture capital, and private credit.
These assets account for 29 percent of the average family office portfolio in 2025.
Private equity funds are the largest component, but direct private equity is the most popular asset class for new investment.
“With their unique ability to take a patient and flexible approach to investing, family offices are well-suited to the private markets,” said Jessa.
She explained that this allows them to invest in a wide range of assets and capitalize on opportunities such as exposure to emerging businesses and new technologies.
Despite recent underperformance in private equity and venture capital, many expect these investments to deliver the best risk-adjusted returns over the long term.
Succession planning is gaining prominence, as nearly half (47 percent) of family offices expect control to transition to the next generation within the coming decade, and almost a quarter (22 percent) within the next five years.
Encouragingly, 69 percent of family offices have a succession plan in place, up from 53 percent last year.
“More family office leaders are prioritizing succession planning than in previous surveys as they prepare families to transition wealth, control and values to the next generation,” said Angie O’Leary, Head of Wealth Strategies and Solutions for RBC Wealth Management–US.
Philanthropy continues to bridge generations and reinforce family values, with almost 90 percent of North American family offices making philanthropic donations, most in excess of US$1m and an average of US$15m.
Mission statements also play a significant role, with 81 percent of family offices using them to define values and give purpose to family wealth beyond investments.
“By involving younger generations in philanthropic activities and establishing clear family values, families can position themselves for a smooth transition of their enterprise, wealth and legacy,” O’Leary said.
Family offices are also responding to operational risks, most frequently citing manual processes and over-reliance on spreadsheets. Their most sought-after technologies are automated investment reporting systems and wealth aggregation platforms.
The investment risks most likely to occur over the next year—including constrained global growth and inflation—are largely attributed to the US administration’s early tariff announcements.
However, only 16 percent of family offices would consider relocating if geopolitical risk was deemed serious enough.
Adam Ratner, director of Research for Campden Wealth, noted, “Compared to 2024, family offices have become notably more cautious stewards of capital. They have moderated their investment expectations, developed stronger governing guidelines and are actively looking for ways to be more efficient with their human capital.”
