Family offices in Singapore are keen to invest in AI, but many are struggling to move forward due to limited deal access and a lack of technical expertise.
While interest has surged, driven by high valuations and anticipated IPOs of major AI firms, investors are becoming more cautious, focusing on profitability and timing. Globally, a large share of family offices prioritise AI, yet many lack exposure to the venture and growth equity channels where most innovation is happening.
The core challenge lies in access and capability. Opportunities are concentrated in a small number of private companies, often requiring strong networks to participate. Evaluating these investments also demands technical knowledge that many family offices do not yet have. Larger family offices tend to overcome this through dedicated teams, while smaller ones rely on indirect exposure via funds or public markets.
At the same time, most family offices are overlooking AI infrastructure such as data centres and power systems, which are dominated by large institutional investors. Instead, they focus on more visible AI applications.
Given these constraints, experts recommend a cautious and diversified approach. This includes partnering with specialist funds, exploring co-investments or secondaries, and maintaining strong risk controls through disciplined due diligence and gradual capital deployment.
