Why This Matters to Distributors: ADI Global is embedding artificial intelligence into core commercial and operating processes rather than treating it as a standalone technology initiative. The company’s strategy ties AI, digital commerce, and enterprise modernization directly to customer growth, productivity improvements, and long-term margin expansion.
ADI Global Distribution Inc. used its inaugural investor day as a soon-to-be independent public company to detail an artificial intelligence and digital strategy spanning product search, pricing, quoting, ecommerce, and back-office operations as it prepares to separate from Resideo Technologies Inc.
The July 14 presentation positioned AI as a foundational capability running throughout the business rather than as a collection of isolated technology projects. Executives outlined how AI is being integrated into customer-facing applications, digital commerce, pricing, and enterprise operations alongside investments in ecommerce, omnichannel capabilities and business systems modernization.
Following the separation, ADI will trade on the New York Stock Exchange under the ticker ADIG. Resideo shareholders of record will receive one share of ADIG common stock for every two shares of Resideo common stock they own. ADI filed its Form 10 registration statement with the Securities and Exchange Commission on May 11.
AI Moves Beyond Pilots
ADI said AI-enabled product search has increased digital revenue generated through its website search bar by approximately 25%, measured by comparing search-generated revenue before and after the technology was implemented.
The company also said an AI-enabled pricing system introduced during the second quarter of 2025 now supports approximately 30% of digital revenue.
Additional AI capabilities under development include conversational search, an AI-powered customer answering tool and faster, intelligent quoting. ADI did not disclose launch dates or financial targets for those initiatives.
Together, the initiatives illustrate how ADI is deploying AI across multiple customer touchpoints, from product discovery through pricing and quotation generation.
Digital Business Continues to Expand
AI is part of a broader digital transformation that has significantly expanded ADI’s online business.
Digital platform revenue increased from less than $300 million in 2018 to more than $1.4 billion in fiscal 2025. During the same period, digital sales grew from 10% to 30% of total company revenue.
ADI said digital platform sales in the Americas generate gross margins approximately 200 basis points higher than nondigital channels. Digitally engaged customers also had a 47% higher retention rate than nondigital customers, based on first-quarter 2026 and first-quarter 2025 customer data.
The company also reported that approximately 40% of customers transact digitally, while about 75% of weekly customer buying journeys include a digital touchpoint. Customers with high or medium digital engagement spent approximately 10 times more on average than nondigital customers during 2025, and about 30% of digital orders were picked up in stores.
ADI is targeting a high-single-digit to low-double-digit compound annual growth rate for digital revenue. The company identified AI-enabled search, technology-enabled pricing, omnichannel convenience, account management, and customer loyalty programs as key growth drivers.
AI Supports Margin Expansion
ADI is integrating AI into a broader strategy to improve profitability over the remainder of the decade.
The company reported fiscal 2025 standalone revenue of $4.8 billion and standalone adjusted EBITDA of $295 million. By 2030, it is targeting approximately $6 billion in revenue and about $500 million in standalone adjusted EBITDA.
ADI also aims to increase standalone adjusted EBITDA margin from 6.2% in fiscal 2025 to more than 8% by 2030 while expanding gross margin from 22.3% to more than 22.7%.
The company is targeting annual revenue growth of 4% to 6%, adjusted EBITDA growth of more than 10% annually and more than $1 billion in cumulative operating cash flow between fiscal 2026 and fiscal 2030. Company officials cautioned that those targets are forward-looking and subject to risks and uncertainties.
ADI identified AI-enabled pricing, digital sales growth, and automation as contributors to those objectives, alongside exclusive brands, expansion into adjacent product categories, organizational changes, real estate optimization, and business platform consolidation.
Technology Modernization Underpins Strategy
Executives said ADI has completed a significant technology modernization program that accelerated the integration of Snap One, streamlined operating expenses and created what the company described as “AI-ready business systems” capable of supporting future growth.
Those investments also support the company’s cost-reduction strategy.
ADI is targeting more than $80 million in annualized operating expense reductions by the end of fiscal 2027. Planned initiatives include AI and automation deployments, platform consolidation, distribution center optimization, store consolidation, and organizational changes.
The company completed a 2% workforce reduction during the second quarter of 2026 and plans approximately 10 store combinations during 2026, five of which had already been completed as of the investor day presentation. Those actions are expected to contribute to more than $30 million in operating expense reductions during 2026.
ADI also plans approximately 20 additional store combinations during 2027 and expects to reduce its North American distribution center network from about 15 facilities to fewer than 10. The company did not break out how much of the projected savings will come specifically from AI because automation is one component of a broader operational improvement program.
Omnichannel Platform Supports Growth
ADI serves approximately 100,000 customers through a combination of digital channels and physical locations.
At the end of fiscal 2025, the company operated 160 stores in the Americas and 38 internationally, employed more than 4,100 people and generated 88% of revenue in the Americas and 12% internationally.
ADI carries more than 500,000 products from more than 1,000 brands. Its exclusive brands generated more than $800 million in fiscal 2025 revenue, and the company employs approximately 1,700 sales team members.
The company said its digital platform increasingly serves as the front door to the business while supporting seamless movement between ecommerce, branch locations, and sales-assisted transactions.
Executives cited technology acceleration, digital emergence, channel convergence, and business model evolution as the major trends reshaping wholesale distribution. ADI said its response is to build a technology platform capable of scaling AI adoption while strengthening its omnichannel customer experience.
The investor day underscored a broader shift taking place across wholesale distribution: AI is increasingly becoming part of the operating infrastructure that supports search, pricing, sales execution, and productivity, rather than remaining a stand-alone innovation initiative.
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