According to a survey conducted by RBC Wealth Management and Campden Wealth, 85% of family offices in North America consider artificial intelligence (AI) a key investment theme, despite 75% expressing concerns about an impending AI bubble. This mixed sentiment reflects a blend of optimism about AI's potential and fear of missing out on lucrative opportunities.
The survey, which included 155 family offices, indicated that while AI is currently prioritized for short-term investments, U.S. equities are viewed more favorably for long-term returns, with 69% of respondents favoring them over AI's 64% for the next two to five years.
Additionally, 76% of family offices identified U.S. equities as a strong investment choice, followed by direct investments at 72%. Real estate, while less favored in the short term, saw increased optimism for the longer horizon, with 51% of respondents believing it would yield rewards in the next two to five years.
The survey also highlighted significant market risks, with 76% citing excessive government borrowing and 66% concerned about AI's impact on employment. Bill Ringham from RBC noted that while family offices are enthusiastic about AI, particularly in startups, they remain aware of the risks involved, suggesting a need for careful investment strategies