Why This Matters to Distributors: Technology resellers are investing more in artificial intelligence, but many are struggling to turn customer trials into ongoing business. The findings point to opportunities for distributors to provide technical advice, training and support that help customers put AI into everyday use.
Technology resellers are increasing investment in artificial intelligence faster than they are generating meaningful revenue from it, according to a TD Synnex report released Nov. 4.
The technology distributor’s fifth annual Direction of Technology report found that 66% of respondents are accelerating investment in AI products and services, while 21% say those investments generate a meaningful share of revenue. The 45-percentage-point gap was the largest among the technologies studied.
The survey gathered responses from more than 1,500 technology resellers across 45 countries. Only 13% said most of their customers’ AI trials had advanced to broader use in daily operations.
That finding measures the share of resellers whose customers moved most trials into wider use. It does not represent the success rate of all individual AI projects.
Security, legal and governance concerns were the leading barriers, cited by 42% of respondents. Another 39% cited an unclear business case or return on investment, while 35% pointed to a lack of employees with the skills to manage AI after deployment.
The results suggest that selling AI requires support beyond the initial purchase. Customers need help identifying useful applications, establishing rules for technology, and maintaining systems once they are operating.
Resellers using AI throughout their own businesses reported stronger growth, higher profit margins and greater success moving customer projects beyond trials. The release did not quantify those differences or establish that internal AI use caused the stronger results.
Customer relationships also mattered in winning business. Existing relationships and trust were the most frequently cited reasons respondents said they won competitive AI deals, at 45%.
The ability to explain AI in plain business language followed at 37%, while 34% cited knowledge of a customer’s industry or business problem. Strong technical capabilities or certifications were cited by 32%.
“Trust has always mattered in this business, and this year’s research reinforces that,” said Patrick Zammit, TD Synnex’s CEO. “As technology continues to change, the partners who build on that trust and continue to expand their capabilities have a tremendous opportunity ahead.”
Respondents identified several ways distributors can help them build expertise. Twenty-nine percent valued their primary distributor’s technical advice before a sale, while 26% valued help developing services in areas such as AI and cybersecurity. Another 28% were relying more on distributor training and support programs to address shortages of technology skills.
Across the broader reseller market, 77% reported revenue growth, up 10 percentage points from the previous year. Meanwhile, 67% reported improved profit margins.
Pricing pressure and shrinking margins remained the leading challenge to expansion, cited by 44%. Investment continued across several categories, with 72% increasing spending on cybersecurity, 68% on cloud computing and 66% on AI products and services.
The report includes regional summaries for North America, Europe, Asia-Pacific and Japan, and Latin America.
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