A new PwC report posits that privately held companies are generally better-positioned than public ones to benefit from generative artificial intelligence. But another recent study by the firm shows family-owned businesses, in particular, face unique obstacles.
According to PwC’s “2025 AI Business Predictions” report, released in February, companies’ AI strategies in the short-term will determine whether they’re on the cutting edge or playing catch-up in the long-term. Meanwhile, a related report, “Private Companies and AI this Year: Key Takeaways from PwC’s 2025 AI Business Predictions,” says privately held companies “are often better placed than public ones to create value with AI quickly.”
Shawn Panson, U.S. private practice leader, PwC US, says private companies tend to be more nimble — and more patient — than public ones, giving them a competitive edge in adopting this swiftly evolving technology.
“With AI, you really need a compliance function that enables innovation, and private companies aren’t always bogged down with the bureaucratic challenges [public companies face],” Panson says.
In addition, public companies tend to face more pressure from shareholders seeking an immediate return on investment, which AI doesn’t necessarily provide, according to Panson.
“Private companies tend to have a longer-term vision, can build AI into their long-term strategy and have more patience to get that return over a longer period,” he explains.
‘A Risky Bet’
But while that ability to take the long view is an oft-cited advantage for family-owned businesses especially, it can also be a hindrance to tech adoption. In PwC’s “Global NextGen Survey 2024,” the results of which were released in March 2024, 73% of NextGen respondents said they believe generative AI is a powerful force for transformation, but many questioned the ability of their family business to capitalize on it.
Jonathan Flack, PwC’s global and U.S. family office and family business leader, says part of the reason family businesses are often late adopters of technology is because they tend to view growth on a generational basis rather than a quarterly basis. As a result, they experience much less frequent turnover among leadership and within their overall workforce than public companies do. The result of these long tenures can be a talent gap across the organization, as well as a knowledge gap at the top.
“The NextGen leaders say there’s a huge opportunity because they’re used to using the technology and they grew up with technology,” Flack explains. “But [a leader] who’s in their 40s, 50s or 60s didn’t grow up with the same level of technology, so there’s less trust around it. That creates a little bit more of an issue of where [current gen leaders] have got to see it to believe it, and that takes time to, first of all, understand how to use it, but then to test it out and actually use it.”
Indeed, 40% of respondents to last year’s Global NextGen Survey said their enterprise had not yet started to explore generative AI and another 30% described their companies as being in the “exploration phase.” (Another 7% said their companies were currently testing and piloting the technology, while 9% said their organizations had prohibited its use altogether.)
While a cautious approach to AI adoption is understandable, it would be a mistake to wait too long. As the “AI Business Predictions” report notes: “Your AI strategy will put you ahead — or make it hard to ever catch up.”
“I think dismissing AI as a passing trend is just a risky bet,” Panson says. “I wouldn’t advise anyone to do it. … I think this is truly a transformative wave coming at all of us. This technology has the ability to reshape industries, change customer expectations and change the competitive landscape entirely in an industry.”
Ground Game, Roofshots and Moonshots
None of this dismisses the fact that knowing where to start with AI can be daunting.
The latest PwC report recommends taking a “portfolio approach” that combines a strong “ground game” (delivering many small wins) with C-suite-driven “roofshots” (projects that are attainable but require more attention and resources) and “moonshots” (ambitious projects such as developing new AI-driven business models). The report also notes that any AI tools a company adopts will require rigorous and ongoing risk assessments: “Even if the specifics of AI assessment and validation are not mandated, stakeholders will demand it — just as they demand confidence in other decision-critical information (such as financial results) or in cybersecurity or privacy practices.”
With all of that in mind, Panson suggests businesses “go after things that aren’t going to change the entire dynamic of their product set and company right off the bat,” such as customer service chatbots and AI-driven FAQ pages.
Flack agrees that starting small is a good approach for most businesses, especially those that are family-owned and wary of new tech.
“Many companies have the ability to use things like [generative AI chatbot] Copilot, which is a Microsoft feature, today,” Flack says. “Start using that more, see how that works. These are small steps to take that might build some confidence within the organization.”
Flack also suggests leveraging NextGens’ knowledge and enthusiasm to educate leadership and the rest of the company on the benefits of AI with the goal of shifting the organization’s perception of the technology from threat to opportunity.
A major focus of that effort, Panson says, should be on discussing how AI tools can supplement — not supplant — existing jobs in the company. This is particularly important in family businesses where employee retention tends to be a point of emphasis and pride.
“I think giving your organization some comfort that it’s not here to replace anyone, but to help us all be better and really ensure the future of the company, will get more people moving,” Panson says.
The good news, according to Flack, is family businesses do seem to be approaching AI with more of an open mind than they were a year ago.
“I would say that in some interactions with NextGens through a variety of our different programs, I’m hearing a more promising message that their organizations are adopting this,” he says, noting the technology — and its prevalence — have rapidly evolved since the 2024 NextGen survey data was released.
Panson added that he’s seen privately held businesses becoming increasingly interested in the potential of using AI agents to augment their workforce.
“I think in family businesses, where they do struggle sometimes to get the kind of talent they need, the use of these agents allows you to scale much quicker,” Panson says. “You don’t have to hire thousands of people to compete. So, it’s not getting rid of employees, it’s making those employees do different work.”