Billion-dollar RIAs lean on AI and data to keep growth going

Billion-dollar RIAs are betting heavily on data infrastructure and artificial intelligence as they look to sustain growth, sharpen valuations, and relieve mounting pressure on advisor time, according to new research from Cerulli Associates.

Cerulli’s latest report highlights that while there are just over 1,500 RIAs with at least $1 billion in assets under management – just under a tenth of the RIA industry by number of firms as counted by the Investment Adviser Association – those firms control the majority of assets in the channel.

The $1 billion AUM line could prove consequential in the coming years, with the Securities and Exchange Commission floating it as the new upper limit for RIAs to be treated as small entities. 

With scale now established, leadership teams are turning their focus to productivity, efficiency, and more deliberate client acquisition. Across billion-dollar RIAs, the top strategic challenges include improving data visibility and usage (35%), winning new clients (33%), and managing advisor and staff productivity (30%). Against that backdrop, 61% of these firms have launched or completed large-scale data projects as part of their strategic planning, with others set to follow over the next two years.

“RIAs investing in data warehouses or other data infrastructure can position themselves for the next stage of growth,” said Stephen Caruso, associate director at Cerulli. “In conversations with acquirers, a robust technology infrastructure can play a significant role in an RIA’s valuation, as many buyers consider investments in firms with an established platform from which to grow.”

Cerulli’s data suggests that billion-dollar RIAs see unified data as the backbone of scale: connecting client records, operations, and performance metrics in a way that supports business intelligence and more targeted decision-making. At the same time, firms are refreshing core systems such as CRMs, which are often the most integrated tools in the tech stack and the natural hub for AI applications.

AI adoption is already widespread among the largest RIAs. Cerulli reports that 70% of billion-dollar firms are using AI for notetaking or call documentation. One-quarter are using AI for client engagement tracking, CRM updates, and meeting scheduling, and half plan to apply it to client onboarding.

A separate report by Schwab found roughly two-thirds of independent RIAs have embraced AI to some degree, double the adoption rate from two years earlier, though only one in 10 firms it surveyed said AI is part of their core business strategy.

Cerulli expects long-term productivity and efficiency gains as AI use cases mature, particularly in how advisors prepare for and follow up on client interactions.

Organic growth remains a central concern in the background. Two-thirds of billion-dollar RIA executives cite organic growth as a top strategic priority, ahead of mergers and acquisitions. More broadly across the RIA market, 57% say new client acquisition is a leading challenge, and 83% of billion-dollar RIAs point to a lack of advisor time as a key constraint on executing growth strategies. Firms are leaning harder into referrals and centers of influence, but with more formal processes and structure than in the past.

“Technology plays a crucial role in modern RIAs, and a given firm’s needs often necessitate a multi-layered technology stack,” Caruso said.

He added that firms able to “successfully implement new technology and enhance their operations” stand to ease their biggest growth barriers, improve client growth and advisor productivity, and strengthen their competitive positioning in a crowded market.