:format(webp)/f/122463/1337x767/727e971712/family-business.jpeg)
Why half of family businesses may be sleepwalking into an AI-shaped future
When we asked 219 business owners what impact AI would have on their competitiveness over the next twelve months, the most striking finding was the majority in the middle. 53% said they expected no real change, leaving more than half of family businesses watching from the sidelines.
Explore the findings of the ifac Family Business Report 2026
Discover more insights like this from ifac's inaugural SME survey, capturing the experiences, concerns, and ambitions of family businesses across Ireland.
:format(webp)/f/122463/6630x4279/6a804769c4/ai-food-production.jpg)
A clear split
Our survey reveals two distinct mindsets. Roughly one in three (35%) believe AI will increase their competitiveness, with one in ten expecting the impact to be significant. A slim but notable 12% believe it will actually make them less competitive, perhaps recognising that rivals are pulling ahead.
Businesses that have already increased their investment are overwhelmingly positive about the potential impact of AI. 68% of those who upped their spending expect AI to boost competitiveness. Larger firms with ten or more employees (56%) and those turning over more than €1 million (50%) are also significantly more likely to see opportunity. Exporters outpace non-exporters, 39% to 32%.
The barriers are practical
The biggest obstacles to digital transformation are distinctly SME-shaped. Investment cost tops the list, cited as a top two barrier by nearly half of respondents (49%). Close behind are the time required to plan and execute (37%) and uncertainty about return on investment (37%). Lack of knowledge (29%) and access to skills (27%) round out the picture. For a family business where the owner is also the operations manager finding time for an AI strategy is a capacity issue.
:format(webp)/f/122463/4585x3052/e161918814/ai-food-production.jpg)
Workforce steadier than headlines suggest
Three-quarters (75%) expect staff numbers to remain unchanged over the coming year. When asked specifically about AI’s impact on headcount, 53% anticipate no material change. One in five (20%) do expect AI to reduce jobs, primarily by avoiding new hires rather than through.
The risk of "wait and see"
It’s understandable that many in that 53% look at AI today and think it doesn’t yet apply. Transformation accumulates over time as a family business adopts small efficiencies such as faster quoting and smarter stock management. The active businesses who see AI boosting competitiveness are simply experimenting with one tool or automating one process. Over a twelve to eighteen month period, those marginal gains compound into a significant gap with competitors.
What family businesses can do now
Start with the pain, not the technology.
Where does the business lose time, make errors, or miss opportunities?
AI is most valuable as a solution to a specific problem.
Ring-fence small investments for experimentation.
A modest monthly commitment to one or two tools, tried for 90 days against a clear objective, builds evidence and confidence.
Treat knowledge as a leadership priority.
Nearly a third flagged lack of knowledge as a barrier. For owner-managers this means allocating even a few hours a month to understanding what’s possible and what peers are doing.
"For a family business where the owner is also the operations manager, finding time for an AI strategy is a capacity issue."
Looking ahead
Family businesses have survived recessions, pandemics, and generational transitions. That resilience works best when it’s forward-looking. The 35% who see AI as a competitive advantage have simply started asking the question. The real risk for the 53% isn’t overnight disruption. It’s that in twelve months’ time they’ll wish they had started today.
Explore the findings of the ifac Family Business Report 2026
Discover more insights like this from ifac's inaugural SME survey, capturing the experiences, concerns, and ambitions of family businesses across Ireland.
:format(webp)/f/122463/800x800/7fb1c3b102/amy-ward-whelan.jpg)