A founder may know which products customers return for, which suppliers to rely on, and when demand is likely to pick up. Much of that knowledge comes from years of running the business and may never be written down. When the next generation takes over, it has to work out how to carry that experience forward while deciding where new tools such as artificial intelligence (AI) might help.
Dr Vinesh Maran Sivakumaran, Senior Lecturer at INTI International College Penang’s Centre for Australian Degree Programmes (CADP), co-authored a study on how family businesses can prepare to adopt AI.
That is one of the issues explored in a study co-authored by Dr Vinesh Maran Sivakumaran, Senior Lecturer at INTI International College Penang’s Centre for Australian Degree Programmes (CADP). Drawing on a systematic review of 41 studies, the researchers proposed a framework for understanding what helps family businesses adopt AI and use it to improve the way they work.
The experience of Malaysian family business Vit’s Noodle illustrates how a successor can begin with a problem they know well. INTI alumnus Lai Yaeh Tat, a member of the second generation of the family business, developed EasyM Merchandising to help manage stock levels, promotional displays and product expiry dates. The platform was first developed for the family business and helped it manage information with less reliance on manual processes. It is an example of digitalisation and shows how familiarity with day-to-day operations can guide the choice of a new tool.
A separate example comes from Malaysia’s durian industry. In 2025, durian brand Dury Dury collaborated with AI commerce platform SVO.ai to explore possible uses of AI in branding, marketing, sales and customer service. Both Malaysian examples provide local context for the research.
Identifying where AI might help is a starting point. The review considers what family businesses would need in place to use it. The researchers proposed five conditions, including suitable technology and skills, openness to new ways of working and the ability to adapt routines. They also highlighted the importance of recording and sharing business knowledge and having leaders who support the changes.
Recording and sharing what employees know about customers, suppliers and day-to-day operations can give the next generation a starting point when introducing new tools..
For a family preparing for a handover, a practical first step is to make sure the information people rely on to make decisions is available to the rest of the team. Recording what founders and long-serving staff know about customers, suppliers and seasonal demand gives the next generation a better starting point. It also gives the business information that AI could help it analyse for patterns.
A handover can bring different views about how quickly to change. Some younger family members may be ready to try new tools, while established leaders may be more cautious about changing practices that have served the business well. The study suggests leaders can help by creating space for staff to learn and test new approaches while keeping decisions tied to the business’s needs.
The paper, “Harnessing Artificial Intelligence (AI) for Innovation in Family Businesses: A Conceptual Model Based on Dynamic Capabilities Theory”, was published in Strategic Business Research in 2026. Dr Vinesh co-authored it with Dr Mohd Rushidi Mohd Amin of INTI International University’s Faculty of Business and Communications. The authors used the theory to explain how businesses spot opportunities, commit resources and adapt as conditions change. The proposed framework still needs testing across different industries and family business settings.
“AI adoption in family businesses is not simply about introducing new technology. It also involves preparing people and processes to make use of it. The experience accumulated over generations remains valuable, but businesses need to find ways to combine that knowledge with new capabilities to remain relevant,” Dr Vinesh said.