Key Takeaways
- • Faegre Drinker partner Gwen Williamson warned that family offices may feel pressured to join an AI "gold rush" without fully testing the technology's capabilities.
- • Citi Wealth's 2026 Global Family Office Report, issued in September 2026, found family offices deploying AI across investment analysis, information management, reporting, workflow automation and decision support.
- • Of more than 350 family offices surveyed worldwide by Citi Wealth, 90 per cent reported positive portfolio returns since the start of 2026.
- • Williamson flagged data privacy, due diligence on AI tools, and human oversight of regulated recordkeeping as key governance concerns.
Summary
Family offices have experienced strong pressure to adopt AI tools, and there is a risk that they feel compelled to join an AI "gold rush" without fully testing what the technology can do, according to a senior figure at international law firm Faegre Drinker, speaking to Family Wealth Report.
Gwen Williamson, who leads the firm's investment structuring, compliance and regulatory management capabilities, pointed to privacy and control over data as central concerns. "Putting family information into an AI tool…who is doing the due diligence? And where is all the information going?" she said. Her comments reflected findings in the 2026 Global Family Office Report from Citi Wealth, issued in September, which details how family offices are using AI across investment analysis, information management, reporting, workflow automation and decision support.
Williamson said large financial institutions have spent years building internal technology systems, and that the industry is now moving beyond generative AI automation toward agentic AI, which she described as "pretty far advanced." On regulation, she stressed that a "human in the loop" is required for regulated entities that must keep records, noting that AI-generated transcripts can automatically become part of the record and must be reviewed by a person. She added that the need for human monitoring adds to operational processes.
On investment performance, Citi Wealth's survey of more than 350 family offices found that 90 per cent reported positive portfolio returns since the start of 2026, and 41 per cent were targeting annual returns of 7 to 10 per cent. Rather than wholesale repositioning amid geopolitical turmoil, family offices favored active management, hedging strategies and targeted changes. Williamson said AI stocks have boosted equities this year.
Williamson also cited "extraordinary uncertainty" in the policy environment, noting that deregulation and changes under the current administration have been implemented, and that the durability of these changes depends on any future administration. Her comments came ahead of the U.S. midterm elections.
Gwen Williamson, who leads the firm's investment structuring, compliance and regulatory management capabilities, pointed to privacy and control over data as central concerns. "Putting family information into an AI tool…who is doing the due diligence? And where is all the information going?" she said. Her comments reflected findings in the 2026 Global Family Office Report from Citi Wealth, issued in September, which details how family offices are using AI across investment analysis, information management, reporting, workflow automation and decision support.
Williamson said large financial institutions have spent years building internal technology systems, and that the industry is now moving beyond generative AI automation toward agentic AI, which she described as "pretty far advanced." On regulation, she stressed that a "human in the loop" is required for regulated entities that must keep records, noting that AI-generated transcripts can automatically become part of the record and must be reviewed by a person. She added that the need for human monitoring adds to operational processes.
On investment performance, Citi Wealth's survey of more than 350 family offices found that 90 per cent reported positive portfolio returns since the start of 2026, and 41 per cent were targeting annual returns of 7 to 10 per cent. Rather than wholesale repositioning amid geopolitical turmoil, family offices favored active management, hedging strategies and targeted changes. Williamson said AI stocks have boosted equities this year.
Williamson also cited "extraordinary uncertainty" in the policy environment, noting that deregulation and changes under the current administration have been implemented, and that the durability of these changes depends on any future administration. Her comments came ahead of the U.S. midterm elections.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.