#United States #Minneapolis #AI Adoption #North America Family Offices #Generational Wealth Transfer

The 2025 RBC and Campden Wealth Report: Transforming Caution into Opportunity

In an evolving economic landscape, North American family offices are transforming their strategies amidst rising uncertainties. According to the 2025 RBC and Campden Wealth Report, these financial entities are increasingly leveraging artificial intelligence (AI) to capitalize on their investments and enhance operational efficiencies. The report, which draws insights from 317 family offices, provides a detailed overview of the changing dynamics within these wealth management entities, especially as they prepare for an impending generational wealth transfer.

Key Findings Show a Shift in Strategies

The report reveals that there is a dramatic shift in sentiment among family offices regarding investment expectations. Unlike past years, 2025 has witnessed a notable decline in confidence, with expected returns plummeting to an average of 5%, a significant drop from the previous year’s 11%. The uncertainty surrounding economic conditions, particularly highlighted by market volatility observed in early 2025, has prompted a more cautious approach. Almost 15% of respondents anticipate losses, a stark contrast to only 1% from the prior year. This sentiment underscores an evolving mindset focused on risk management and liquidity.

“More family office leaders are prioritizing succession planning than in previous surveys as they prepare families to transition wealth, control and values to the next generation”, said Angie O'Leary, Head of Wealth Strategies and Solutions for RBC Wealth Management.

Such changes have led family offices to prioritize improving liquidity and de-risking their portfolios, indicating a clear pivot in their investment philosophies. Interestingly, cash is seen as a more favorable asset, as many predict it will provide the best returns over the next year.

Moreover, a staggering 48% of respondents are focusing primarily on enhancing liquidity, while 33% are seeking diversification to mitigate risks associated with unforeseen market downturns.

AI as the Cornerstone of Operational Efficiency

As tech advancements reshape industries, family offices are embracing AI technologies to streamline operations and decision-making. The report reveals that the adoption of automated investment reporting systems has surged, increasing from 46% in 2024 to 69% in 2025. Furthermore, the use of generative AI has risen significantly, with 29% of family offices now utilizing it for investment reporting, up from just 11% last year.

This evolution in technology is not merely about efficiency; it’s a strategic move to adapt to the complexities arising from rapid market changes and heightened competition. Manju Jessa, Vice President at RBC, expressed optimism about the ongoing integration of technology, which is expected to expand as long as associated risks and costs are effectively managed.

Generational Wealth Transfer: Bridging the Gap

Succession planning is becoming increasingly prevalent among family offices, as nearly half anticipate a transition of wealth control to the next generation within the next decade. This generational shift is closely intertwined with philanthropic endeavors; about 90% of family offices are actively engaging in philanthropy to instill values and responsibilities in younger family members. The report highlights that average philanthropic donations exceed US $15 million, showcasing a commitment to social causes alongside financial growth.

“Generational wealth transfer is a crucial pivot point for any UHNW family or family office,” O'Leary emphasized. By involving younger generations in philanthropy, families aim for smoother transitions of wealth and values.

Conclusion: The Future of Family Offices

The 2025 RBC and Campden Wealth Report showcases an essential moment for family offices grappling with uncertainty yet embracing innovation. As they enhance their use of AI and recalibrate strategic priorities, these entities continue to navigate complex investment landscapes effectively. The future holds promise, with a stronger emphasis on technology, liquidity, and responsible wealth transition anchoring families in maintaining their legacies in a turbulent world.