Dubai Chambers sponsored an exclusive roundtable at the World Governments Summit in Dubai on 11 February 2025, bringing together leaders of multigenerational family businesses to discuss two defining forces shaping the future: artificial intelligence (AI) and succession planning.
Family businesses are integral to global economies, particularly in the Middle East and Asia, where they collectively hold trillions of dollars in assets and drive local economic activity. However, they are now facing a critical inflection point: how can they leverage AI to remain competitive while preserving their legacy across generations?
This roundtable discussion explored the role of AI in investment strategy, supply chain management, and workforce transformation, as well as the challenges of succession in an era of rapid technological change.
AI: A Game-Changer for Family Business Investment and Operations
Where to Invest in AI?
A central theme of the discussion was how family offices should approach AI investment. AI is not a sudden revolution—it is the result of years of investment in data infrastructure, computing power, and energy efficiency. It is now inevitable, and businesses that fail to adapt risk falling behind.
There are two primary ways AI will impact family businesses:
- How family offices use AI to optimize their operations and decision-making.
- How family offices invest in AI-driven companies and technologies.
One of the key insights shared during the discussion was that while some businesses are not at the forefront of AI development, they are deeply focused on applying AI to enhance efficiency, reduce lead times, and improve sustainability standards. This is especially relevant in sectors such as supply chain management, where AI is being used to revolutionize forecasting, production planning, and customer insights—compressing lead times from years to mere weeks.
One pressing question was whether AI will create or eliminate jobs. The consensus? AI will generate more jobs than it replaces—but not necessarily where displaced workers are currently located. This raises a significant challenge for supply chains: how do we retrain and redeploy talent in an AI-driven world?
A participant from the audience, working in supply chain management, remained skeptical, arguing that AI cannot replace the “boots on the ground” approach needed in logistics. In response, panelists pointed out that while certain physical tasks remain irreplaceable, AI is already transforming product development and consumer analytics.
Turning Data into a Liquid Asset
Another major theme was data valuation. Some businesses are working to transform data into a tradeable asset class. This has profound implications for family businesses:
- If data can be monetized, businesses will become more valuable.
- AI models require vast datasets—meaning that family businesses with strong proprietary data assets hold a competitive advantage.
- Transparent data valuation could revolutionize balance sheets and investment strategies.
Additionally, regulatory developments in certain markets are setting the stage for data to become a formalized asset, further enhancing its role in wealth management.
AI and Venture Capital: A New Frontier
A venture capital (VC) professional in the audience raised an interesting point: how can family offices use AI to become better investors?
Rather than simply investing in AI startups, family offices can leverage AI internally to:
- Analyze investment patterns and predict high-potential startups.
- Harness proprietary data from their portfolio companies.
- Develop AI-powered investment thesis agents to refine decision-making.
The key takeaway was that AI is not about having more data—it’s about having the right data. Family offices that integrate AI with deep domain expertise will gain a significant edge.
Succession Planning in the Age of AI
While AI and digital transformation dominated the conversation, succession planning remained a core concern. Family businesses, by nature, span generations, and ensuring smooth transitions is essential for longevity.
Does Wealth Last Beyond Three Generations?
A well-known saying echoed throughout the discussion: “Wealth does not last beyond three generations.” This highlights a universal challenge—by the third generation, businesses often fragment due to inheritance disputes, lack of interest, or mismanagement.
Several succession strategies were debated:
- Selective inheritance: Some families limit wealth transfer to a few key members to preserve continuity, though this approach is not universally accepted.
- Separation of business and ownership: Many family enterprises opt to keep professional management in place while family members retain financial stakes.
- Going public: If family businesses struggle with governance, an IPO can provide stability while preserving wealth.
Some participants argued that next-generation members should not feel entitled to leadership roles in the business. Instead, they should earn their place or step aside for professional managers.
A Global Succession Framework?
A unique idea was proposed: an international secondment program for next-generation family business leaders.
Rather than assuming leadership in their own family’s enterprise immediately, young successors could gain experience working in other family businesses worldwide. This would expose them to different governance models, reduce entitlement mentalities, and enhance their leadership skills before taking the reins at home.
The Emotional Factor
Ultimately, the biggest challenge in succession planning is not financial—it’s emotional. Family conflicts, differing visions, and generational gaps often complicate the transition process. Some participants suggested that family offices should be fully professionalized, removing family members from management entirely. However, others argued that emotional connections are what make family businesses unique.
Dubai’s Role in Shaping the Future of Family Business
As family businesses navigate these challenges, the cities and ecosystems that support them will play an increasingly critical role.
Dubai has emerged as a leading global hub for family businesses, offering a world-class ecosystem that fosters growth, innovation, and longevity. Recognizing the critical role these enterprises play in economic development, Dubai Chambers has established the Dubai Centre for Family Businesses—a dedicated initiative designed to support family enterprises and ensure their long-term success. This center provides guidance on governance, market expansion, and financial structuring, reinforcing Dubai’s position as an ideal base for multigenerational businesses.
Additionally, the Dubai International Financial Centre (DIFC) Family Wealth Centre plays a vital role in helping family enterprises build and sustain prosperity over generations. By providing access to financial services, investment opportunities, and regulatory frameworks tailored for family offices, Dubai has set a precedent for how governments can create environments where family businesses can thrive.
With its strategic position as a global trade, finance, and real estate hub, Dubai continues to shape policies that provide businesses with access to new markets, capital, and governance frameworks that balance tradition with innovation.
Key Takeaways: The Future of AI and Family Business
- AI is not a trend—it is an inevitable transformation. Family businesses must embrace AI in their operations and investment strategies to stay competitive.
- Data is becoming an asset class. Businesses that understand how to quantify and monetize their data will gain a significant advantage.
- AI will create more jobs than it destroys—but reskilling is critical. The workforce must be trained to collaborate with AI, not compete against it.
- Succession planning needs a modern approach. Businesses should consider selective inheritance, professional management, or IPOs to ensure longevity.
- Cities that put innovation at the forefront, like Dubai, are leading the way. With robust regulatory frameworks, dedicated support through Dubai Chambers, and world-class infrastructure, Dubai is positioning itself as the global capital for family businesses navigating the future.
As DFDF continues to champion venture capital as an investment asset class, these discussions highlight the pressing need for innovation, adaptability, and strategic governance in family enterprises. The future of wealth is being shaped today—and AI will be at the center of it.