October 16, 2026
Why TPA firms should treat AI like a business strategy
From conference stages to industry publications, artificial intelligence (AI) may be the most discussed topic in financial services today. There’s no question about whether AI will impact our industry. In many cases, it already has. What many third-party administrators (TPAs) are now asking is:
What can AI actually do for my practice?
The answer is probably less dramatic than media headlines suggest. Firms seeing the most productive results are not trying to automate everything. Instead, they’re applying AI in an intentional and strategic way to eliminate routine work, improve efficiency and create more time for client service, business development and growth.
What you need is a plan.
Start with the work, not the tool
One of the biggest mistakes a firm can make is starting with an AI platform and then looking for ways to use it.
Successful firms do the exact opposite. They begin by examining the work that needs to get done, the tasks that their teams perform on a regular basis:
- Meeting preparation
- Plan reviews
- Compliance testing
- Client communications
- Participant support
- Internal reporting
- Onboarding and training
The list varies from firm to firm. The next step is always the same. They ask: which task consumes the most amount of time?
In most cases, the answer isn’t the client-facing work. It’s everything that happens before and after. Consider a TPA preparing for a client’s annual plan review. Whether alone or with a team, notes must be gathered, participant and plan data reviewed, potential action items identified and an agenda created. Follow up needs to happen directly after the meeting. None of those tasks require advanced advisory expertise, yet they can consume hours every week.
Using approved AI tools, firms can create a repeatable process to help those activities, allowing TPAs to spend more time engaging with clients and delivering insights.
Think small before you think big
Firms may feel pressure to build out a comprehensive AI strategy right out of the gate. Instead, consider focusing on a single workflow. Maybe:
- Drafting first versions of client emails
- Creating meeting agendas
- Summarizing notes and action items
- Organizing plan information
These tasks are repeatable, time-consuming and follow fairly consistent patterns. They are exactly the type of work that can be done more efficiently by using AI.
A practical AI roadmap for TPA firms
Appoint an AI champion
Many AI initiatives stall for the simple reason that nobody owns them. That doesn’t necessarily mean hiring a technology specialist. You may just need one or two team members who are naturally curious about AI and are willing to help the firm experiment. AI champions can help:
- Evaluate tools and seek approval to adopt them
- Share successful use cases at the firm
- Coordinate training
- Help colleagues avoid common mistakes when using the technology
- Report progress and identify future opportunities
Don’t forget what your clients find most valuable
Clients don’t hire TPAs because they’re good at technology. They hire them because they trust their judgement and their ability to serve their business. AI can’t replace that. The technology won’t be able to build relationships or strengthen those ties the way you can.
What AI can do is enable you to spend more time doing what you do best. So, the goal isn’t really automation, it’s expanded capacity that generates results.
Imagine this scenario: Your TPA firm is growing. You’ve discovered that onboarding new employees has become increasingly difficult because critical operational knowledge resides with a few long-tenured staff. You focus your AI efforts on helping to document procedures and create more consistent training materials.
Against that backdrop, the outcome isn’t flashy, it’s productive. Onboarding is improved, processes become more consistent, and knowledge is more easily transferred throughout your organization.
As firms like yours are asked to do more with limited resources, AI may be the clearest strategy for success.