Artificial intelligence is capturing the attention of family offices across Singapore and Asia. According to LH Koh, UBS's managing director for global family and institutional wealth, AI has emerged as a crucial sector for these investors. More than three-quarters of families surveyed by UBS in 2024 are eager to invest in generative AI within the next few years. Tuck Meng Yee from JRT Partners highlights specific investments in companies like Cognaize and Consai, focusing on data classification within the AI domain. Additionally, there is growing interest in China’s AI landscape, spurred by developments such as DeepSeek, which have reignited investor enthusiasm despite recent economic challenges.

The investment climate in China has seen fluctuations due to its slowing economy, but recent stimulus measures have begun to attract renewed attention. Srihari Kumar of LionRock Capital notes that while China once occupied a significant portion of portfolios, it now represents a smaller share. However, this trend may reverse as family offices reassess opportunities in China’s public markets and technology sector, signaling a potential resurgence in Chinese investments.

Emerging Trends in AI Investments Across Asia

Family offices in Singapore and Asia are increasingly channeling their resources into artificial intelligence ventures. This shift marks a pivotal moment in regional investment strategies, with AI emerging as a dominant focus area. LH Koh from UBS emphasizes that over 75% of family offices are keen to explore generative AI investments in the near future. Investors are not only diversifying their portfolios but also honing in on specialized aspects of AI, such as data classification technologies.

Investment trends indicate a strategic pivot towards innovative AI solutions. For instance, Tuck Meng Yee from JRT Partners has strategically invested in firms like Cognaize, an Armenian software development company, and Consai, a construction tech firm based in Qatar and Poland. These choices reflect a broader movement among family offices to engage with cutting-edge technologies and leverage them for long-term growth. The region’s robust appetite for AI underscores its transformative potential and aligns with evolving global market dynamics. Investors are actively seeking out companies at the forefront of technological innovation, ensuring they remain competitive in an ever-changing financial landscape.

Renewed Interest in China's AI Sector

China's AI sector is regaining traction among international investors, particularly family offices. Despite previous hesitations linked to economic slowdowns, new developments have sparked optimism. Srihari Kumar of LionRock Capital highlights how advancements like DeepSeek position China as a leader in AI innovation, even amidst resource constraints. This resurgence coincides with Beijing's efforts to stimulate both the economy and the tech sector, encouraging renewed foreign interest.

Historically, China constituted a substantial part of many portfolios, but this proportion dwindled in recent years due to domestic challenges. However, the tide seems to be turning. Investors are reevaluating their positions, driven by promising signs in China’s public markets and technology industries. Srihari Kumar illustrates this shift by reallocating his portfolio to include more Chinese public market investments and tech opportunities. As family offices weigh their options, they recognize the potential benefits of reinvesting in China. This recalibration reflects broader shifts in global investment patterns, emphasizing adaptability and forward-thinking strategies in response to changing geopolitical and economic landscapes. With AI at the forefront, China offers a compelling case for those willing to embrace its evolving market conditions.