The world’s wealthiest families are pouring billions into artificial intelligence as an investment theme. But when it comes to using the technology themselves, most are still watching from the sidelines.
That divide is highlighted in Blackrock’s 2025 Global Family Office Report, based on responses from 175 single family offices with average assets of 2 billion dollars, collected between 17 March and 19 May 2025.
The report makes clear that artificial intelligence is now a core investment theme for many of the world’s wealthiest families. Yet most family offices have not integrated AI into their internal operations.
According to the report, 51 percent are investing in companies likely to benefit from AI adoption, while 45 percent are backing infrastructure enablers such as semiconductors, data centres, and cloud platforms. Only one in three family offices currently use AI internally.
“We are really at the beginning of the journey towards AI within family offices,” Lior Katz, director and head of continental Europe family offices at Blackrock, told Investment Officer. This is the first year that Blackrock asked family offices about AI, highlighting the technology’s growing role in strategic allocation and investor sentiment.
Internal adoption still limited
Among those using AI internally, 34 percent apply it to investment analytics, and 17 percent use it for investment manager due diligence. Other uses include document processing, portfolio optimisation, and risk modelling.
Barriers to adoption include data privacy concerns (47 percent), lack of in-house expertise (44 percent), and integration challenges with legacy systems (23 percent).
“Family offices are still figuring out how to use it,” Katz said, noting that many are at the stage of automating data consolidation or document processing. Some still rely on Excel for risk management.
While just 17 percent currently use AI in due diligence, 66 percent are considering it. “We know that 66 percent are considering to use AI in investment manager due diligence. Only 17 percent are currently doing so,” Katz said.
Opportunities for managers
Family offices are open to AI-enabled investment tools, particularly if they are explainable and backed by strong performance.
Katz pointed to rising interest in systematic hedge funds using machine learning and big data to generate alpha. “We see a lot of demand for market neutral hedge funds. Hedge funds that do have a very low beta and that can really provide different return streams to portfolios,” he said. “One type of hedge fund where we see a lot of demand right now is systematic hedge funds that use exactly the AI, machine learning, and big data to create alpha for the investors.”
Strategic shifts in portfolios
Beyond AI, Katz highlighted three broader trends in the 2025 survey: heightened geopolitical risk, shifting portfolio construction, and growing interest in private markets.
Some 98 percent of EMEA-based family offices plan to change their asset allocations, mainly to enhance downside protection and liquidity in volatile markets. “Ninety-eight percent is a huge number. It means that out of the 175, maybe three or four family offices told us that they want to keep their portfolio as it is right now,” Katz said.
This shift reflects a move away from bottom-up investing to an all-weather portfolio approach focused on diversification and liquidity.
Private credit leads alternatives
Family offices are also allocating to funds underwriting in private credit and infrastructure investing, two sectors among their top allocation priorities this year.
Alternatives make up 45 percent of Emea portfolios. Private credit is a top priority, with some families allocating up to 30 percent of their AUM. The report shows 32 percent plan to increase allocations, the highest for any alternative asset class.
“On average, we see a private credit allocation of 15 to 30 percent of the total AUM with family offices,” Katz noted. “Private credit was the number one. Thirty-two percent of the global family offices plan to increase or add new exposure to their private credit allocation.”
Infrastructure in focus
Infrastructure is also gaining traction. The report shows 75 percent of family offices have a positive view of the asset class, and 30 percent plan to increase their allocations by 2026. Digital infrastructure and energy-transition assets are especially in demand.