Written by: Adrian Johnstone | Practifi
The months right after you acquire a firm can be hectic. You’re busy integrating teams, updating tech, and reinventing workflows. When it feels like you’re catching up, it’s hard to look ahead - but preparing for the future is essential in our fast-moving industry. As you get your new partner on board, there’s a forward-looking metric you need to assess: AI readiness.
In 2026, an RIA will likely tout their experience with AI. But what does that signalling actually mean? Most firms use commercial LLMs to draft emails or take meeting notes, but they barely scratch the surface of what AI tools can offer. The successful RIAs of the future are integrating AI deeply to transform their daily workflows and drive effective, automated growth.
For PE firms out there, it’s vital for you to understand how your partner is using AI. If they haven’t taken full advantage of this tech, it’s your role to get them up to speed.
Defining “AI readiness”
AI readiness is a future-looking idea, but it requires action now. Readiness comes from two primary factors: a persistent curiosity to work with AI tools, and a commitment to build active, rather than reactive, workflows.
AI technology has evolved rapidly. Its capabilities are always changing, which means you need to stay up-to-date and investigate new tools. If a firm still uses an early version of an LLM to drive a calcified workflow, it will fall behind. If it’s willing to experiment and find new use-cases, it will fare much better.
An active workflow takes full advantage of automation, while a reactive workflow creates more busywork. A reactive use of a notetaking tool, for example, stops at using AI to produce a meeting transcript. An active workflow produces that transcript, compiles key highlights, updates system data, and assigns action items to team members. Creating a multi-step process, and using the right tools, is crucial for teams to move the ball forward.
The cost of reactivity
Tech integrations can make or break a productive workflow. This is true when an individual firm adopts a new tool, and it’s doubly relevant when two companies integrate tech stacks. It’s important to do this thoroughly and mindfully right after an acquisition, so you don’t run into bigger problems down the line.
Reactive AI usage recreates familiar problems. When teams use a tool for one isolated purpose, they need to adopt many more to fill workflow needs. They quickly build a bloated tech stack. Spend adds up, and productivity gains lag behind. Advisors struggle translating between platforms and waste time onboarding over and over. Action items are missed, and the client relationship gets lost in all the busywork.
The solution? AI-native operations
A truly AI-ready firm is streamlined and proactive, with a small group of tech tools that each pull their weight. AI readiness is crucial to the long-term success of an RIA, and it requires adjustment right now. If you have recently acquired a firm, it’s vital to assess their AI readiness and help them grow stronger.
To capture the full potential of AI, it’s important to adopt tools that are purpose-built for wealth management rather than general use. You need to take a hard look at how advisors really use each tool in their current stack, to inform which to cut and which to keep.
The most productive partnerships help both parties grow. You owe it to your new teammates, and yourself, to prepare for success with AI readiness.
Related: Finding Opportunity in Uncertainty: 4 Keys To Thriving Despite Difficult Conditions