The Rich Chase Artificial Intelligence... Despite the Bubble

A recent survey revealed that enthusiasm for artificial intelligence has become the primary driver of investment decisions among family wealth management offices in North America, despite the majority of investors believing that a potential bubble could hit the sector in the coming years.

The survey, conducted by RBC Wealth Management in collaboration with Campden Wealth and covering 155 family offices in North America, found that 85 percent of respondents ranked AI as the top investment theme of all time.

Bill Ringham, Director of Private Wealth Strategies at RBC, attributed this contradiction to a mix of cautious optimism about technology and the fear of missing out on an investment wave that could yield substantial gains.

Ringham stated that “even patient capital can fall victim to the fear of missing out,” referring to the growing appetite for AI-related investments, as reported by CNBC and reviewed by Arabi Business.

The survey indicated that 85 percent of participants view AI as an asset class or investment trend likely to deliver attractive returns within the next 12 months, over a two- to five-year horizon, or across both periods. US equities ranked second at 76 percent, followed by direct investments at 72 percent.

The survey showed that AI topped the list of investment themes for 2026 at 59 percent, although family offices appeared more confident in US equities over the long term. When asked about the best return opportunities over the next two to five years, 69 percent chose US equities, compared to 64 percent for AI, while direct investments ranked third at 62 percent.

The survey also highlighted a shift in perceptions regarding real estate, with only 26 percent expecting attractive returns over the next 12 months, while this figure rose to 51 percent when evaluating investment opportunities over a two- to five-year period.

Ringham believes the results reflect the impact of the AI momentum on short-term decisions more than on long-term investment strategies.

He explained that the fear of missing out is typically associated with a short-term perspective, which explains why AI tops investors’ priorities for the coming year before long-term preferences return to more established traditional assets.

He emphasized that investors are still adopting a cautious approach toward the sector, particularly in startup investments, noting that many see great long-term potential for the technology but are also aware of the risk of a bubble forming due to the large influx of new companies into the market.

The survey showed that 75 percent of participants expect an AI investment bubble to burst within the next five years, while 76 percent believe excessive government borrowing poses the greatest threat to markets during the same period. Additionally, 66 percent view AI developments and their impact on the labor market as one of the most significant future risks.

While the survey did not directly address how family offices are adjusting their asset allocation in response to the AI boom, the data showed that 31 percent intend to increase their direct investments in private equity, while more than one-fifth of participants plan to boost their investments in real estate and venture capital.

Ringham suggested that artificial intelligence is likely to be present indirectly across many of these investment categories, as investors continue to seek opportunities to capitalize on the technological transformation reshaping various economic sectors.