Generative AI in family businesses: How to capitalise on opportunities and overcome challenges

Generative artificial intelligence has been the talk of the town ever since the high-profile launch of ChatGPT - and has already fundamentally changed large parts of the world of work. This ongoing development is increasing the pressure to get to grips with the technology.

For companies that are still in the early stages of digital transformation in particular, crucial questions arise: How can generative AI be meaningfully integrated into operational processes? What potential does it offer and where are the risks? The new practical guide "Generative AI in Family Businesses" from the Witten/Herdecke University-based WIFU Foundation and Comma Soft AG - a Bonn-based family business and consultancy for holistic digitalisation - provides answers to these key questions. With the help of four case studies from family-run SMEs and findings from research, the reference guide provides orientation and assistance with the introduction of the technology.

The publication makes it clear that generative AI can help to specifically address key challenges faced by family businesses - shortage of skilled workers, scarcity of resources, internationalisation and digitalisation. The prospects of success depend largely on five key factors: (1) Top management and the owners should not only be convinced of the AI technology themselves and have practical user knowledge wherever possible, but also actively support the operational introduction. Equally important are (2) a suitable technical infrastructure with structured data, (3) comprehensive training measures with a continuous exchange of experience, (4) clear guidelines for data protection and data use and (5) a balance between specific use cases and a company-wide introduction.

"The introduction of generative AI is not a question of if, but how," says Maren Bendel, first author of the reference guide and strategy consultant at Comma Soft. "Family businesses need to drive forward their digital maturity in order to remain competitive in the long term. And when implemented correctly, technology can already bring significant operational progress."

The practical guide described above and other WIFU publications are available free of charge on the WIFU Foundation website .

For further information, please contact Dr Ruth Orenstrat at ruth.orenstrat@wifu-stiftung.de or +49 2302 8898303.