Why This Matters to Distributors: Rexel’s latest earnings call offered one of the clearest views yet into how a global distributor is approaching artificial intelligence. The company sees AI not as a standalone technology project, but as a tool to improve productivity, simplify operations and free employees to focus on higher-value technical work. Executives also acknowledged that AI alone will not create a lasting competitive advantage because competitors are making similar investments.
Artificial intelligence is becoming a core part of Rexel’s operating strategy, with executives saying the technology is already improving productivity and will play a growing role in how the electrical distributor serves customers and runs its business.
During the company’s second-quarter earnings call, executives described AI as a long-term operational priority rather than a standalone technology initiative. The focus, they said, is on improving employee productivity, streamlining internal processes, and allowing workers to spend more time on technical and customer-facing activities.
“This is where AI is a very significant opportunity for us,” CEO Guillaume Texier said.
Texier said Rexel views AI primarily to help employees work more efficiently, not simply as a cost-cutting tool.
He noted that salaries and benefits account for about 10% of the company’s sales and said current AI initiatives point to the potential for significant productivity improvements over time.
Those efforts are already producing results. Rexel reported a record 4% productivity improvement during the first half of 2026, which executives attributed to operational improvement programs and the company’s AI transformation. The gains helped offset higher operating costs while supporting improved financial performance.
Executives say AI is being integrated into broader efforts to modernize the business rather than deployed as a separate initiative.
Texier said Rexel continues investing in AI capabilities alongside projects designed to simplify internal processes, improve execution, and reduce the cost of serving customers. The company expects those investments to strengthen its long-term competitive position.
Rexel is also expanding its digital capabilities. During the second quarter, digital sales in North America reached 27% of regional revenue after the company introduced new quoting and order-entry tools. Executives said those investments improve customer experience while helping employees work more efficiently.
Texier also offered a realistic assessment of AI’s long-term impact on the industry.
He said the technology will improve productivity, but the benefits are unlikely to remain with distributors alone because competitors are making similar investments.
“In a competitive world where every competitor is working on AI, parts of the benefits may be given back to the customer in price,” Texier said.
The comments suggest Rexel views AI as a capability distributors will need to remain competitive rather than technology that will permanently separate winners from the rest of the market.
Even as AI automates routine work, Rexel believes distributors will continue to differentiate themselves through engineering expertise and technical services.
Texier said the company is “moving up the value chain” by providing customers with technical capabilities and solutions in addition to electrical products.
That strategy is reflected in the company’s recent acquisitions. This year, Rexel acquired Revere Electrical Supply in Illinois, TC 360 in Canada and DEE Electronics in Iowa to expand its capabilities in industrial automation, data center design, and advanced manufacturing.
For Rexel, AI is intended to handle more routine work while enabling employees to focus on complex customer problems, engineering support and other value-added services that are more difficult to automate. Executives said that combination of AI and technical expertise will be central to the company’s long-term strategy.
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