Artificial intelligence is entering a new era of widespread adoption in wholesale distribution, according to Jonathan Bein, co-founder and managing partner of Distribution Strategy Group.
Speaking before more than 250 distribution industry executives at the third Applied AI for Distributors conference on June 24 at the Chicago Marriott O’Hare in Rosemont, Illinois, Bein said AI is becoming “fully immersive for distributors.”
“Three years ago, there was a fine line between fear and excitement over AI,” Bein said, citing concerns about data security and job displacement. “There was insecurity.”
But today, he said, the distribution sector has entered “a period of enlightenment” as companies move beyond hesitation and begin to embrace AI tools, especially machine learning and conversational AI platforms like ChatGPT, developed by OpenAI.
“It’s becoming a big part of what we do,” Bein told attendees, emphasizing how AI is now woven into core operational strategies.
44% of distributors surveyed by Distribution Strategy Group say AI will provide a competitive advantage if used effectively, Bein reported in an earlier conference session. And they are using AI more and more. For example, 36% are using AI in sales this year versus 22% last year, 45% in website and digital applications compared to 28% last year.
DSG estimates AI will reduce distributors’ labor costs by 3.5% to 5% within a few years and boost revenue by 6% to 8.5%, Bein said. And that assumes constant pricing. If, for example, a distributor would take some of the labor savings and use it to lower prices it could gain market share.
Another reason for distributors to get into AI early: Those that do, Bein said, will influence how technology provider develop their AI products.
Running from June 24 to 26, the Applied AI for Distributors conference brings together executives from across the U.S. for a focused look at how AI is being applied to real-world business challenges. Unlike broader technology summits, this event zeroes in on one key question: How can distributors use AI today to solve problems?
The program features five keynote sessions, and a full slate of breakout tracks designed to move beyond buzzwords and hype. Sessions address practical topics such as embedding AI in logistics, pricing, HR, and innovation workflows—along with how to avoid common implementation pitfalls.
The conference’s overarching theme is clear: AI won’t replace the fundamentals of distribution, but if used wisely, it will enhance and accelerate them.
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