Organizing Family Business for AI Adoption: An Explorative Study

Family businesses represent the most common form in the entrepreneurial fabric. These are firms of extremely different sizes, from small to large, with peculiar organizational characteristics. Technological evolution has imposed a new challenge on family businesses, traditionally slow in adopting technological innovation (Chrisman et al., 2015; McElheran et al., 2021), including the adoption of artificial intelligence (AI). Artificial intelligence (AI) is one of the most important technologies of the future (Crew, 2020). AI is a collection of information communication technologies that imitate human intelligence for the purpose of improving jobs, creating greater efficiencies, and driving economic growth (Olan et al, 2022). Knowledge, on the other hand, is the key component that enables AI innovations adding value to organizations (Robbins, 2019). Managing this new technological revolution represents a further new challenge and opportunity for family businesses (Liu, 2020). These companies often face obstacles such as the resistance in absorbing new technology and knowledge (Ulrich et al., 2023; Rashid and Ratten, 2020). For this reason, it is necessary to understand how to encourage the adoption of AI in these complex organizations. The purpose of this article is to present the results of qualitative research on key organizational factors (KOFs) that can impact the adoption of AI within family businesses. There is a vast academic literature that has focused on the elements and factors that can impact the positive adoption of new technologies. However, we must consider the peculiar characteristics of companies which by their nature are oriented towards generational change. For this reason, the analysis must consider both the characteristics of the current management and of the successors (Zellweger et al., 2015). In fact, the current generation will have to create the conditions to adopt AI, but the next generation will manage the business through AI. Using semi-structured interviews and questionnaires, both qualitative and quantitative data were collected. The main results of this study offer indications on the factors that can facilitate the introduction of AI within a family business and highlighted that family businesses are aware of the strategic importance of introducing artificial intelligence, but at the same time, demonstrate skepticism and difficulties in application. The findings may offer interesting managerial implications for family business entrepreneurs. In fact, AI and its adoption are crucial for the survival of the family business