So I got some raw pictures from a client for some business cards, they all look grainy when imported to illustrator
I tried to edit the pictures and export them to JPG, but they still look grainy in illustrator.
Try resizing your image in Photoshop first to the actual dimensions you will be using in your Illustrator files and re-link your image. I suspect the large dimensions are what is causing the wonkiness.
Illustrator is a vector imaging program. I think that RAW is not included as a compatible raster format for Illustrator and so I am not sure it can handle RAW files properly. I have no idea why the jpg version don't work, but it should work just fine if you convert the images in PSD file format.