Enrique Hinojosa, a fourth-generation leader of Welldex Logistics in Mexico, believes that the most significant challenge of digital transformation is changing the company’s culture to adapt to new challenges. This is particularly difficult in family-owned businesses where traditional methods of doing things may be deeply ingrained.
A recent survey supports Hinojosa’s sentiment, indicating that current generation leaders in family businesses are less optimistic about their business’s readiness for change and doubt the full potential of AI. Scott Likens, global AI and innovation technology leader at PwC US, highlights the benefits of AI for family businesses, including improved products and services, faster time to market, better decision-making, and higher profits.
Family businesses play a crucial role in the global economy, contributing nearly 70% of global GDP and employing 60% of the world’s workforce. Therefore, leveraging generative AI’s potential is not just about one company staying competitive but also shaping the global economic landscape.
NextGen leaders have a responsibility to society, the environment, employees, families, and businesses as they navigate the challenges and opportunities presented by generative AI in a responsible manner. The report found that current generation leaders are more cautious when adopting new technologies like AI while NextGen leaders are more open to exploring its potential. Only a small percentage of family businesses have implemented AI with many either not exploring it or prohibiting its deployment altogether.
