LC Ideas: Views & Insights
Are family offices really embracing AI as a long term thematic bet?
AI adoption is rapidly reshaping industries like healthcare and logistics, unlocking compelling investment opportunities. But for family offices—long known for their conservative, capital-preserving approach—this surge raises a critical question: how to participate in AI’s expanding potential without straying from their risk-preservation ethos?
According to Devesh Wadhwani, Executive Director of the Private Client Business at Lighthouse Canton in India, the key lies in measured curiosity.
“Family offices are definitely engaging with AI, but the enthusiasm isn’t uniform,” Wadhwani shared in a recent LC IDEAs: Views & Insights interview. “There’s a lot of interest, but not all families are approaching it with the same intensity.”
The hesitation often stems from risk appetite. “Do they want to take this risk and have the appetite for it? Maybe it is tricky,” he said. Many families—especially those with operating businesses—prefer not to be early adopters or lead investors in emerging technologies. Instead, they tend to take smaller, more cautious positions or “go along with another fund or family,” Wadhwani explained.
He also distinguishes between AI as a tool being adopted operationally within family businesses and AI as a broader investment theme—each drawing varying degrees of comfort and engagement.
On the operational front, adoption is growing—but subtly. “It’s not necessarily for the decision-maker,” he noted. “It is more for their team.” While a few more advanced families may be using AI for investment decision-making, support functions—admin, reporting, compliance—are slowly integrating tools such as chatbots and workflow automation.
Platforms like ChatGPT may be generating excitement, but Wadhwani observes that more specialised tools remain underutilised. “There’s a lot of room for penetration,” he said. For many family offices, even simple AI-driven changes represent a significant cultural shift. “Families need to be comfortable with taking decisions as fast as AI is giving the inputs.”
LEARNING MINDSET
When it comes to investment exposure, family offices are treading carefully. Many are opting for passive or indirect strategies—such as investing in large tech funds, both in India and globally. These moves are often less about chasing near-term returns and more about building an informed perspective.
“There is interest to interact with the space,” Wadhwani said, “but the amount of money put into that space lags the mind space it has.” In other words, the conversations are evolving faster than the capital allocations.
He calls this initial phase a “learning tax”—families intentionally invest small amounts to understand how the AI ecosystem behaves, including how fund managers handle volatility or failed bets. As familiarity grows, some families eventually shift to more direct involvement. “Once they develop the intelligence capability, they want direct deals as well,” Wadhwani observed.
This progression—from passive allocations to direct participation—requires more than just capital. It calls for advisory ecosystems that combine private banking, investment banking, and structured product expertise. “We have to help them at both ends,” he added.
Also read: How to get involved in the Gen-AI frenzy?
COLLABORATIVE INVESTING
Family investment approaches are undergoing a fundamental shift. The traditional model of secrecy and operating in isolation is giving way to more collaborative networks. “They’re forming cohorts—groups of people they trust. They’re investing together,” Wadhwani explained. From WhatsApp groups to private syndicates, families are now openly sharing intelligence and co-investment opportunities. This level of openness marks a notable departure from past practices.
This community-led approach is becoming a competitive advantage. Name recognition—once avoided—is now strategically pursued. “They want deal providers to know that they exist,” Wadhwani said. “So the right deals come to them.”
Forums and private gatherings hosted by Lighthouse Canton have helped strengthen this network effect. “They get comfort from the fact that they are dealing with the right set of people, within their ecosystem,” he said. That transparency—knowing who else is in the deal—is reducing hesitation and accelerating momentum.
Also read: The rise of AI agents and what does it mean for the financial services industry?
A GENERATIONAL SHIFT IN MOTION
Ultimately, what’s shaping both tech adoption and investment behaviour is a generational shift in mindset. “Families are learning, and learning allows them to understand the risk-return equation,” Wadhwani said. This wave may appear cautious on the surface, but it’s steadily gaining velocity.
“You have to look at it from a 10-, 20-, 30-year horizon,” he added. Just as private market investing took off post-2015, family office participation in AI is in its early growth phase. “It’s already taken off—the next level of adopters will start to join in.”
