RSMUS.comTrust and governance must scale with automation
AI governance for family offices is becoming a critical consideration as adoption of artificial intelligence accelerates. Family offices are using AI to help lean teams expand capacity, automate manual tasks, reduce inefficiencies, and increase visibility into complex financial portfolios. As adoption grows, governance practices must grow with it.
The pace of adoption continues to increase. A 2026 Citi Group survey reported that 26% of respondents were using AI for operational tasks or investment analysis, up from 13% in 2024. Other surveys indicate even higher levels of adoption. While the exact rates vary, the broader trend is clear: more family offices are exploring AI across a growing number of use cases.
The opportunities are significant, but so are the risks. Without thoughtful oversight, AI can introduce operational, compliance, and decision-making challenges. Effective AI governance for family offices starts early, continues throughout the lifecycle of AI initiatives, and evolves as adoption expands.
The core principles of family offices
Family offices are built on trust, transparency, and accountability. These principles help families understand how decisions are made, what outcomes are achieved, and who is responsible for results.
AI can create challenges in all three areas. Decision-making processes may be difficult to interpret, automated actions may be less visible to stakeholders, and responsibility can become unclear when technology plays a larger role in business processes. These outcomes are not unavoidable, but they become more likely when governance frameworks are weak or inconsistent.
For that reason, trust in automation is fundamentally a governance consideration rather than a technology consideration. Family offices should evaluate governance expectations before introducing new AI tools into critical workflows.
Key components of AI governance
Family offices already apply due diligence, risk assessment and standardized processes to financial and operational activities. Similar disciplines can guide AI governance for family offices.
Tool selection
Evaluate how AI tools make decisions, manage data, affect compliance obligations and integrate with existing systems. Vendors should provide clear, verifiable information about their products and processes.
Data governance
Define which data and workflows may interact with AI systems. Train users on appropriate usage practices and be deliberate about what information is shared with AI tools.
Internal controls
Develop policies that explain where, when, why and how AI may be used. Assign responsibility for maintaining and updating those policies as adoption expands.
Clear accountability
Keep people involved in important decisions supported by AI. Establish consequences for policy violations and define responsibility for outcomes that involve automated processes.
Continuous monitoring
Review AI performance regularly, identify emerging risks, monitor unsanctioned usage and update governance practices as regulations or business priorities change.
Perhaps most importantly, apply governance consistently across all AI initiatives rather than limiting oversight to selected projects.
How Family Offices can approach AI responsibly
Many family offices have limited internal resources available for developing and maintaining AI governance programs while also managing their existing responsibilities. A measured approach that balances innovation, oversight, stewardship and risk management can help organizations move forward with greater confidence.
As AI capabilities continue to evolve, governance should remain a foundational part of every automation strategy. Family offices that align technology adoption with trust, transparency and accountability will be better positioned to evaluate opportunities and manage risk over time.
Steph Hagstrom
Steph provides Sage Intacct technology consultation services to a variety of organizations. She has worked with many types of clients but focuses primarily on family offices. Steph has worked with Sage Intacct for more than 12 years and has been in the technology consulting practice for 6 years. Steph has worked closely on family office and not-for-profit engagements since her career started at RSM, including day-to-day accounting and maintaining client relationships. In her current role, Steph delivers advice and consultation regarding implementations, configures modules and creates financial reports.
