Why This Matters to Distributors: QXO is putting artificial intelligence at the center of its effort to combine three major building products businesses into a more efficient distribution network. The company is targeting improvements in sales productivity, purchasing, pricing, inventory management, and customer ordering. Its prediction that AI could double sales force productivity in one business unit illustrates the potential gains, although QXO has not yet demonstrated those results.
Building products distributor QXO Inc. is expanding its use of artificial intelligence across sales, purchasing and distribution operations, with CEO Brad Jacobs saying one initiative could double sales force productivity in a business unit.
The company is also testing a common technology platform across its Beacon, Kodiak Building Partners, and TopBuild businesses. The system includes AI-enabled customer management software, automated purchasing tools, warehouse management technology, and new pricing capabilities.
Jacobs outlined the initiatives during a Nov. 9 conference call discussing QXO’s preliminary third-quarter results and its progress integrating acquisitions.
“AI is a key driver of both operational excellence and margin expansion,” Jacobs said. “One project we’re particularly encouraged by could effectively double sales force productivity in one of our business units.”
He added: “More broadly, we see the potential to boost productivity in a number of daily workflows.”
Jacobs did not identify the business unit involved, describe the AI application or explain how QXO would measure the projected improvement. The company also did not provide a timetable for achieving the productivity increase.
The comments represent one of QXO’s clearest statements about the potential effect of AI on its sales operations as it has worked to integrate businesses acquired over the past two years.
QXO expects most of the revenue from its acquired Beacon, Kodiak, and TopBuild operations to be running on a common technology platform within the next year.
The company is testing the systems at selected locations before expanding their use across the business.
The platform combines enterprise resource planning software, point-of-sale systems, AI-enabled customer relationship management, procurement bots, warehouse management technology, and pricing tools.
The effort is intended to replace or connect systems inherited through acquisitions and give QXO more consistent information about customers, products, pricing, and inventory.
The changes could also reduce differences in how acquired businesses handle purchasing, customer orders, and warehouse operations.
QXO has not disclosed how much it is spending on the technology rollout or how much of its expected operating improvements will come specifically from AI.
The company is pursuing the investment as it integrates three businesses that have given it major positions in roofing, insulation, waterproofing, lumber, and other building products.
Sales productivity is one of several areas where QXO expects technology to improve operations.
The company is upgrading its e-commerce capabilities so customers can check inventory availability, obtain quotes, place orders, and track deliveries online.
“The goal is to make it easy for customers to do business with QXO, so that each time they use us, we earn their loyalty for the next transaction,” Jacobs said.
The improvements are designed to make purchasing easier for contractors and other customers while reducing the manual work involved in processing transactions.
QXO is also investing in customer management and pricing systems as it seeks to increase sales across its acquired businesses.
The company has identified approximately 2,000 inactive customers that previously generated $500 million in combined business. Reestablishing those relationships represents another potential source of sales growth.
In Tampa, Florida, QXO is testing a coordinated sales initiative covering 18 construction trades, an effort to sell more products and services to existing customers.
Jacobs did not link those initiatives to the AI project that could double sales force productivity.
The company has not said whether AI will be used to automate customer prospecting, prepare quotes, recommend products, or perform other specific sales tasks.
QXO is also using its growing size to pursue improvements in purchasing, inventory replenishment, and transportation.
The company has identified approximately $7.6 billion in annual purchasing shared by at least two of its three acquired businesses. About $5 billion involves suppliers that sell to all three.
QXO believes coordinating those purchases could help it negotiate better prices, rebates, and contract terms.
Automated procurement is part of the company’s technology program, although QXO has not disclosed how much of the potential savings will come from AI rather than larger purchasing volumes.
Inventory management is another priority.
“More efficient inventory replenishment will reduce working capital requirements without compromising customer fulfillment,” Jacobs said.
The company also plans to use technology to improve truck loading and delivery routes, which Jacobs said should reduce transportation costs.
Those efforts are part of a broader strategy to lower operating expenses while maintaining service levels as QXO integrates its distribution network.
QXO reported preliminary third-quarter sales of approximately $4.9 billion, up 79% from $2.73 billion a year earlier.
Its net loss narrowed to approximately $123 million from $139 million in the third quarter of 2025, an improvement of 11.5%.
The sales increase reflected acquisitions. The latest quarter included results from Kodiak beginning April 1 and TopBuild beginning July 1. Neither business was included in the year-earlier period.
QXO acquired roofing and waterproofing distributor Beacon in April 2025, followed by Kodiak in April 2026 and TopBuild in July.
Together, the acquisitions have expanded QXO’s distribution and installation operations.
Jacobs also reported improving sales trends in existing businesses.
Companywide daily sales increased 5.4% from a year earlier in October, while daily sales in roofing and waterproofing increased 9.1%.
Pricing improved during the year, shifting from a companywide decline of 1.7% in April to an increase of 2.3% in September.
QXO expects to report complete third-quarter financial results Nov. 12.
Jacobs announced plans to lead a separate $1 billion investment in CKX Lands, a publicly traded company that he intends to develop into another acquisition platform.
Jacobs said he would remain chairman and CEO of QXO while assuming the same positions at the new venture.
At QXO, the technology investments are part of a strategy to increase sales, improve operating efficiency and continue expanding through acquisitions.
The company is targeting $50 billion in annual revenue within the decade.
Its technology program is intended to help QXO operate its acquired businesses as a more coordinated distribution network rather than a collection of companies using separate systems.
The rollout also provides a test of how much AI can improve productivity in a large distribution organization.
For now, QXO has not disclosed the costs, performance measurements, or results of the sales initiative that Jacobs said could double productivity.
The company expects to put most of its acquired operations on the new technology platform within a year, providing an opportunity to assess whether those investments translate into faster sales processes, lower operating costs, and improved customer service.
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