Enrique Hinojosa, the fourth-generation leader of Welldex Logistics in Mexico, discussed the challenges of digital transformation in a family-owned business. He mentioned that changing the company’s culture to align with new challenges is particularly difficult in such enterprises, where traditional ways of doing things may be deeply ingrained.
According to a survey, current generation leaders in family businesses are less optimistic about their company’s readiness for change and doubt the full potential of AI. However, Scott Likens, global AI and innovation technology leader at PwC US, believes that leveraging the potential of generative AI can have significant benefits for family businesses. These include improved products and services, faster time to market, improved decision-making, and higher profits.
Family businesses play a crucial role in the global economy, accounting for nearly 70% of global GDP and employing 60% of the world’s workforce. Therefore, shaping the global economic landscape through generative AI is not just about one company staying competitive but also about making a positive impact on society as a whole.
The report also compared NextGen leaders’ attitudes towards innovation with those of current generation leaders in family businesses. It found that while NextGen leaders are more open to adopting new technologies like AI, current generation leaders are more cautious when it comes to implementing these technologies. While only a small percentage of family businesses have implemented AI so far, many either haven’t explored it or have prohibited its deployment altogether.
In conclusion, leveraging the potential of generative AI is essential for family businesses to stay competitive and contribute positively to society. NextGen leaders have a responsibility to navigate this challenge responsibly while balancing their interests as future owners with their social and environmental responsibilities.
