“The most difficult part of digital transformation is changing a company's culture to meet new challenges, and it's even more difficult in a family-owned business,” said Enrique Hinojosa, fourth-generation leader of the family-owned business. Masu. Mexico's Weldex Logistics is quoted in the report.
The survey results echoed Hinojosa's feelings. “They are significantly less optimistic than the current generation of leaders about the readiness of their business, and are confident that the current generation will realize the potential of AI,” Scott Likens, global leader of AI and innovation technologies at PwC US, said in the report. “I have doubts about whether we understand it to its fullest extent.” “Benefits include “unlocking a variety of opportunities, including improved products and services, faster time to market, improved decision-making, and increased profits.''
Why family businesses matter
According to the International Federation of Accountants (IFAC), family businesses account for nearly 70% of global GDP and generate significant employment. According to research by the United Nations Conference on Trade and Development (UNCTAD), two-thirds of businesses around the world are owned or run by family businesses, which make up 60% of the world's workforce.
Therefore, “Harnessing the potential of generative AI doesn't just mean one company staying competitive; it's shaping the global economic landscape,” the PwC report asserted. . According to PwC, NextGen leaders as future business owners are inheritors of the largest transfer of wealth in history and therefore have a responsibility not only to their business, but also to society, the environment, and their employees and their families. .
“This includes significant interest in companies’ ability to responsibly navigate the hype, expectations and fears surrounding generative AI,” the report added.
Next generation and current generation: how do they stack up?
The report highlighted the cautious nature of current generation leaders compared to next generation leaders as far as adopting innovation is concerned. A significant 49% of family businesses have not started considering AI or have prohibited its implementation, and only 7% of businesses have implemented AI.
