Majority of heirs of Singapore family businesses find it hard to keep up with AI: study

The top concerns cited were cybersecurity, misinformation and legal risks.

More than 60% of next-generation leaders of family businesses in Singapore have yet to adopt technology and are finding it difficult to keep pace with AI, according to study by PwC.

Its Global NextGen Survey 2024 showed 67% of NextGen respondents in the city-state admitted that the rapid rise of AI is hard to keep track and only about a third said they understand generative AI.

13% said they have faith in the digital capabilities of their family businesses, lower than the regional average of 22% in Asia Pacific.

What concerns NextGens the most about AI are potential risks on cybersecurity, the spread of misinformation as well as legal liabilities and reputational risk, according to the study. 

A measly 3% of NextGen Singaporeans have existing establishing protocols on the responsible use of emerging technologies like AI. 

Despite the low tech adoption, nearly a quarter of the respondents believe they can add value to their family business by modernizing the practices of management while 10% said they can do so by devising a business strategy that is fit for the digital age.

“Coupled with the conservative and risk-averse nature typical of family businesses, this lack of trust can further affect communications and the integration of new technologies such as GenAI,” said David Toh, entrepreneurial and private business leader at PwC Singapore. “As heirs apparent, NextGen can lean on shared family values to foster greater trust between generations and within the organisation to help lead the family business into the future.”

The study was based on a survey of 917 interviews conducted across 63 territories globally, including 310 interviews in Asia Pacific – 30 of which were in Singapore.