New York, New York--(Newsfile Corp. - August 27, 2026) - U.S. Family enterprises are entering a period of profound structural transition. While confidence in the generational wealth transfer - and family legacy and future vision - is at an all-time high, family owners are actively preparing to hand over day-to-day operations to outside executives, according to the 2026 US Family Business Report from KPMG LLP, the U.S. audit, tax, and advisory firm.

The survey reveals a stark evolution in how private wealth views leadership. While an overwhelming 91% of respondents expressed strong confidence in the next generation's ability to lead as owners and board members, only 36% expect family members to occupy most senior leadership roles over the next decade.

"The data challenges a traditional operating assumption that succession simply means passing every leadership role to the next generation," said Tracey Spivey, National Practice Leader for Family Enterprise, Tax at KPMG LLP. "We are seeing a strategic shift from 'family run' to 'family governed.' Families are realizing that separating ownership from daily management means that the best person to grow the business, while keeping the values, reputation and long-term perspective that made it successful in the first place, may come from outside the family."

The "Architecture Gap"; Ambition is Outpacing Infrastructure

As family enterprises become more comfortable separating ownership from management, they are also confronting the governance, talent and technology requirements needed to support their next phase of growth. The findings reveal a clear "Architecture Gap" between growth ambitions and the organizational capabilities required to deliver on them. Respondents cited attracting high-quality external talent as their top workforce challenge (39%), while 51% identified AI strategy and deployment as their largest organizational skills gap.

Technology provides perhaps a clearer illustration of this "Architecture Gap". While 86% of respondents are either piloting or scaling AI initiatives, only 40% have established a formal AI governance framework to oversee those efforts. The disconnect extends beyond technology: a lack of formal governance can make it harder to attract the outside executives and specialized AI talent that many family businesses will increasingly depend on for growth. As leadership transitions from family-run to family-governed models, governance itself is becoming a competitive advantage, helping family enterprises attract the talent needed to scale while preserving the values that define family ownership.

The survey highlights other key themes shaping the institutionalization of the family enterprise:

Professionalizing Leadership & Talent

• Only 36% expect family members to occupy most senior leadership roles over the next decade.
• Attracting high-quality external talent is ranked as the absolute top workforce challenge.
• 73% are putting younger generations through on-the-job training, focusing on board-level governance rather than pure operations.

The AI & Governance Paradox

• 86% are currently piloting AI or have adopted it at scale.
• 51% cite AI strategy and deployment as their most severe organizational skills gap.
• Only 40% have established a formal AI governance framework.

Growth & Strategic Vision

• 93% agree they have a clear, documented growth strategy for the next five to ten years.
• Shared purpose and family reputation are cited as the primary value drivers of the business, ranking ahead of pure financial capital.

The findings suggest that the most resilient family businesses over the next decade will be those that successfully institutionalize their governance, upgrade their technology oversight, and integrate outside leadership, all without losing the advantage of long-term family ownership.

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Survey Methodology
The report draws on 109 US responses to the KPMG Global Family Business report 2026, fielded during the first quarter of 2026.

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Source: KPMG LLP