AI Hype Fear Dives Family Offices Toward Tech Investments
A new study reveals that 85% of family offices in North America view artificial intelligence as a top investment theme, yet more than two-thirds expect a bubble to burst within five years.
A recent survey conducted by RBC Wealth Management and Campden Wealth showed that 85% of family offices in North America position artificial intelligence as their highest priority investment theme. While fear of missing out lies at the core of this interest, 75% of participants are concerned about a sector bubble bursting over the next five years.
High Interest in Artificial Intelligence Investments
The survey, conducted with the participation of 155 family offices in the North American region, highlighted the popularity of artificial intelligence among investors.
It was found that 85% of participants consider artificial intelligence to be the top investment theme or asset class.
Short-Term Focus and the Fear Factor
Bill Ringham, an official at RBC Wealth Management, stated that even patient capital can be influenced by the fear of missing out on opportunities in the market.
It was noted that this enthusiasm for artificial intelligence influences short-term focus rather than long-term strategies.
Bubble Concerns and Risk Perception
The same research also revealed that 75% of these investors who place artificial intelligence at the top expect a bubble to burst in the sector within the next five years.
Excessive government borrowing ranked first at 76%, followed by the bursting of the AI bubble and the impact of AI developments on employment.
Long-Term Preferences and Other Assets
Although artificial intelligence is the most popular theme in the short term, family offices place more trust in American equities for long-term return expectations.
Over the next two-to-five-year horizon, US stocks stood out at 69%, while artificial intelligence remained at the level of 64%.