Family business technology transformation 2026

Nearly half (48%) of family businesses are currently either rolling out (41%) or developing (7%) a technology strategy to strengthen their operations. This comes as roughly half report they are only moderately (37%) or insufficiently (11%) invested in the operational technology they need to support their operations now and in the future, and 51% rank inadequate technology adoption as a moderate/high risk to their business.

Family businesses are adopting technology across a wide array of areas, with the most popular being in their operations (to streamline/automate processes), finance and accounting, IT, cybersecurity, and research and development functions. That said, their implementation is often described as “partial” rather than “full”, reflecting a cautious, gradual approach to digital transformation.

With an 86% adoption rate, AI technology is becoming robust and enterprise-wide. At the forefront of in-demand AI applications are process efficiency (40%), risk mitigation (39%), and customer relationship management (CRM) (39%).

The core challenges family businesses face when adopting new technology relates to market conditions (e.g., economic uncertainty, competition pressures), financial constraints, privacy concerns, and trust concerns with external vendors/consultants, with each ranking as a primary challenge among nearly a third of respondents.

Most family businesses report that their investment in technology has delivered value across a variety of fronts, such as improving efficiency (with 96% reporting moderate/significant value creation), productivity (95%), decision-making (95%), risk management (95%), competitiveness (94%), and cost savings (94%).