Tension and Opportunity: Investing Across Generations in the Age of AI

Many of the 20^th century family fortunes were built in industries that their founders understood from the ground up: manufacturing, healthcare, energy, construction and real estate. Today, their children and grandchildren may be far more interested in artificial intelligence and other emerging technologies.

For a generation that created wealth through disciplined execution, AI scepticism may be entirely reasonable. Its technical language can be unfamiliar, its valuations can appear untethered from traditional measures, and its loudest advocates often make extravagant predictions. Eerily reminiscent of TMT mania¹ in the late 90s. 

Unlike the TMT boom and bust in financial markets, that era of development delivered the foundations for meaningful change in the use and adoption of technology over the subsequent 20 years. 

Understanding the impact of technological innovation is essential for families wishing to sustain their wealth across generations. The opportunity is to create a dialogue in which the experience of one generation and the perspective of the next can inform how the family moves forward.

AI Is Coming to the Factory Floor

While much of the mainstream media focus has been on the semiconductor firms that are enabling AI, or firms developing LLMs, there remains much to exploit and benefit from in terms of real-world application. In manufacturing, AI is being used to predict equipment failures, identify defects, optimise production schedules, reduce waste, and improve product design. These applications improve uptime, quality, labour productivity and margins.

At one Chinese automotive-component factory, AI-powered troubleshooting and automation helped increase productivity by 60.2% while reducing finished-product defects by 45.9%​​.²

A family whose wealth was built through manufacturing does not have to abandon its industrial heritage to participate in the technology economy. AI may help legacy businesses protect margins, maintain quality, and remain competitive – real-world challenges solved through the deployment of technology.

Healthcare Is Becoming a Technology Industry

AI is also moving into medical imaging, diagnostics, drug discovery, patient monitoring and clinical administration. Its expanding role in regulated healthcare has required the US Food and Drug Administration³ to develop new frameworks for evaluating AI-enabled medical devices.

AI may influence everything from clinical outcomes and operating efficiency to competitive positioning. For families with interests in healthcare, understanding those changes is becoming part of responsible long-term ownership.

The Digital Economy Runs on Physical Assets

AI may appear intangible, but it requires enormous physical investment. Data centres need land, chips, cooling systems, power generation, transmission capacity and specialised construction.

The International Energy Agency estimated that data centres consumed about 415 terawatt-hours of electricity worldwide, or about 1.5% of global electricity consumption in 2024. Data-centre electricity consumption has grown at 12% per year over the last five years​​^.4

That growth is creating demand across utilities, natural gas, renewable power, nuclear energy, electrical equipment, engineering, industrial land and real estate. The AI technology cycle is already benefiting some very ‘traditional’ businesses far from Silicon Valley.

Neither Rejection nor Enthusiasm Is a Strategy

While the older generation can make the mistake of dismissing unfamiliar opportunities as speculative, even dangerous, the younger generation can make the opposite mistake: confusing familiarity with technology for investment judgement.

A more durable approach brings the strengths of both generations together. Some family members may contribute experience in evaluating management, cash flow, competitive advantage, and capital discipline. Others may bring greater familiarity with emerging technologies, changing consumer behaviour, and new business models.

The opportunity is to create a process in which inherited wisdom and emerging knowledge can test each other.

Give the Next Generation a Framework

Families can begin by giving younger members responsibility before giving them control. They might be asked to research an emerging technology, present an investment thesis or explain how AI could affect an existing family business. Senior family members can then test the proposal against enduring investment principles that the family has applied successfully elsewhere.

A Corient Wealth Adviser can help families evaluate emerging opportunities within a disciplined investment framework, bringing the judgement of one generation together with the perspective of the next.

Source

¹ Encyclopedia Britannica, “Dot-com Bubble”, https://www.britannica.com/money/dot-com-bubble  (accessed 10 August 2026).
² World Economic Forum (2025), Global Lighthouse Network 2025: World Economic Forum Recognises Companies Transforming Manufacturing Through Innovation.
³ US Food and Drug Administration (FDA). FDA Issues Comprehensive Draft Guidance for Developers of Artificial Intelligence-Enabled Medical Devices. Available at: https://www.fda.gov/news-events/press-announcements/fda-issues-comprehensive-draft-guidance-developers-artificial-intelligence-enabled-medical-devices
⁴ International Energy Agency (IEA). Energy Demand from AI. Available at: https://www.iea.org/reports/energy-and-ai/energy-demand-from-ai

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