What AI can already do
It’s necessary to understand what AI can do within your family office today, to provide more clarity on the types of pilot projects you can begin initiating. Despite the headlines, most current use cases for AI are not about replacing people or deploying dystopian AGIs…yet.
Rather, they are about saving time, reducing manual labour, and giving teams the leverage they need to scale operations or optimise their outputs. Here are some real-world examples we’ve seen, demonstrated by our family office service providers:
1. Data extraction and automation
Automating routine tasks, specifically within wealth management, is one of the most effective ways AI delivers significant value to family offices. Essentially, this involves reducing the hours spent manually entering investment data from PDFs. How it works is that once a PDF is uploaded, the tool retrieves data and categorises it within the relevant fields, be it capital calls, cash flow, deposits, withdrawals, etc. All the while storing the PDF document with the corresponding transaction or investment.
2. Instant analysis
Another way AI is currently used in family offices is for its ability to instantly surface data when needed. So instead of having to recall file names or scroll down to see past transactions, family office software that is powered by AI can instantly surface the information you need with natural language prompting. Family office software that offers this AI feature usually comes with a chat interface on the dashboard, enabling users to interact with their financial data in a conversational manner.
3. Complex accounting
Family office accounting has been a major beneficiary of AI with its numerous entities, currencies, and accounts. Typically built on AI-powered general ledgers, a number of platforms use APIs to integrate with all your other platforms. Then they create accounting connections and sync all your transaction data on one dashboard to give a holistic overview of wealth. So, instead of working with several siloed platforms and then consolidating everything in a spreadsheet, they can streamline everything on a unified AI-powered platform.
4. Legal and compliance
Last but not least, family offices that have in-house legal teams can use AI in their daily legal processes to reduce repetitive tasks. Unlike general-purpose AI, legal AI is specifically trained for corporate legal teams. For instance, it’s great for analysing contracts and can generate quick summaries of legal meetings. Legal AI tools can really help family office teams transform how they work and make more informed decisions.
All the above use cases and family office service providers are available today.