Family offices need a clear roadmap to harness AI's productivity gains without compromising oversight, confidentiality or human judgment.
Artificial intelligence is a game-changing technology for family offices—for better and worse.
Generative and agentic AI are creating new efficiencies, offering the ability to rapidly accelerate back-office processes. There’s potential to reduce reliance on third-party services and lower operating costs.
On the flip side, cybercriminals are finding ways to penetrate the information technology infrastructure of family offices, exposing them to ransomware attacks and other threats.
“Family offices absolutely need a roadmap to establish proper guardrails for the technology,” says Adam Evans, chief information security officer at RBC.
The combination of concentrated wealth, lean governance structures and discreet operations make family offices an increasingly targeted cohort. Mr. Evans explains that AI essentially gives criminal organizations “super powers,” allowing them to gather data about family offices and family members at scale, and to hyper-personalize attack campaigns.
Cybercriminals are also using AI to create deceptively realistic voice and video deepfakes gleaned from social media and other public-facing online content from family members. That creates novel challenges for family office finances, for their reputations and for their businesses. It’s why cybersecurity has become the primary near-term risk cited in RBC’s latest North America Family Office Report.
Among surveyed family offices, concern about data breaches and cyberattacks as near-term operational risks grew to 59 percent in 2026, from just 16 percent in 2025.
The concerns are warranted. Half of responding family offices experienced phishing attempts in 2026, and one-quarter saw a family member’s personal accounts breached. At the same time, basic mitigations declined: two-factor authentication fell from 92 percent to 83 percent, and dual payment authorization from 84 percent to 73 percent.
AI use is increasing, with 54 percent of respondents using the technology for investment research, and 36 percent to collect and manage internal data.
The report notes that while family offices see AI’s potential, they’re understandably cautious about quick adoption. Many recognize the gravity of cybersecurity risks given that “a single breach or system failure … can threaten the family’s wealth,” Lori Woodman, managing director, Family Offices, RBC Enterprise Strategic Client Group, writes in the report.
As the pace of opportunities and threats accelerate, the challenge is to embrace what AI brings to operations, reporting and analysis, while keeping risks in check.
Mr. Evans notes most family offices, especially those with relatively straightforward digital footprints, should be able to explore widely available AI tools like Microsoft’s Copilot, OpenAI’s ChatGPT, Anthropic’s Claude or Google’s Gemini.
“As family offices get more comfortable with the technology, they may seek more bespoke solutions, developing their own AI tools,” he says.
Still, family offices should remain mindful that information shared through digital platforms is never entirely without risk. That makes strong governance, data-handling practices and cybersecurity controls essential as AI adoption expands.
The importance of strong safeguards also extends to the exchange of sensitive information across the family office ecosystem, adds Manju Jessa, head, Family Offices and Strategic Clients, RBC Enterprise Strategic Client Group.
“Family offices play a central role in coordinating a complex network of advisors and trusted partners, where sensitive information must be exchanged securely and with purpose,” she says. “AI can drive greater efficiency and coordination. However, the real measure of progress is whether AI can enhance the way families are served without compromising confidentiality, oversight or human judgment.”
For a wide range of uses—from analyzing and rebalancing a financial portfolio, to eliminating grunt work, to surfacing insights to make smarter decisions—Mr. Evans says AI can play a trusted role when there’s an understanding of how to harness it properly.
Governance is critical, including separating a family’s personal online environment—like devices and social-media accounts—from the office and business environments. “Creating that separation means instituting greater layers of cybersecurity in your family office, appropriate for the importance of what you’re trying to protect,” Mr. Evans says.
Many family offices have IT personnel, even if they’re only one person or a small team. They, and the rest of the office, need to create and understand cybersecurity protocols, and grasp their roles if and when an incident happens.
The North America Family Office Report notes more than 70 percent of family offices now outsource at least part of their cybersecurity needs. Other precautions go beyond protecting against threats from outside bad actors. AI planning should address “what if” scenarios if the AI tools that offices are using “escape” into other parts of their networks, consuming data they’re not supposed to access.
It’s also essential that AI tools continue to act on their intended missions, Mr. Evans says. Even when operating with solid guardrails, and providing productivity-boosting insights and assistance, AI technology still requires a human in the loop.
“Large language models still suffer from hallucinations,” he says, referring to instances where AI confidently generates information that isn’t true. “You absolutely need to review the output to ensure it is accurate and providing the results you expect.”
The goal is always to use AI to your advantage and protect against its misuse, which is where proper governance and cybersecurity safeguards come in.
“From a productivity standpoint, AI is going to be hugely helpful, freeing up its people to do truly value-added work,” Mr. Evans says. “But family offices must be cognizant of AI’s real-world risks as much as its potential benefits.”
Learn more about family office structures, cybersecurity and how AI is affecting family office efficiencies–and review key trends raised in the 2026 North America Family Office Report .
This article was originally published in The Globe and Mail .
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