Family offices face challenges in two critical areas that are more connected than it may first appear: staffing and technology.
“If someone wants to build a new family office today, there are two areas they must be successful with: They have to have great talent, and they have to have leading-edge technology that will enable and protect the family office. You need to invest in both, increasingly equally,” says Erik Christoffersen, head of Family Office Practice for AlTi Tiedemann Global.
Talent is the single largest operating expense for family offices, according to the “2025 Family Office Operational Excellence Report” by AlTi Tiedemann Global and Campden Wealth. More than 80% of family members who responded to the survey say they were satisfied with their family office staff. But the report says family offices are increasingly vulnerable to retirements and staff departures: 70% of family offices reported difficulty hiring staff and 65% are concerned about retaining key staff.
As for technology, the report found half of family offices use leading-edge technology for investing. But this is not the case for the rest of their technology — only about one-third use leading-edge technology for the rest of their operations.
“Most family offices are paying a single C-level executive more than all the money they’re spending on technology,” Christoffersen says. “That is a huge disconnect, particularly with the dawn of AI. The performance of the family office is going to be more and more dependent on having great technology together with great talent.”
Improving technology can also help with staffing, Christoffersen says.
“Increasingly, if you want to attract great talent, particularly with the younger crowd that is 100% digitally literate, you need a great tech stack,” Christoffersen says. “If you don’t have that, they will say it will inhibit their ability to bring a lot of value to the family office.”
Christoffersen says many family offices turn to a strategic outsourcing partner for at least some of their technology to upgrade their technology.