Industry Insights

For distributors still relying heavily on manual quoting, static online catalogs or poorly structured product data, the competitive gap could widen as Home Depot puts AI deeper into the contractor purchasing process.

Recent earnings reports and investor calls show companies beginning to talk less about AI as a broad technology initiative and more about where they are putting it to work.

AI agents are starting to do the shopping. Not recommend. Not assist. Shop.

The data presented at the Atlanta forum points to an industry where practical AI use is increasing but remains far from widespread.

The agenda reflects a shift in the distribution industry’s AI conversation. The question is increasingly less about what AI might eventually do and more about what distributors are putting into production now, whether employees are using it and whether it is improving business performance.

The companies in the Platinum, Gold and Silver tiers have demonstrated what DSG classifies as “Integrated” AI capability — production deployments with measurable business impact rather than pilots, partnerships, or announcements alone.

For Ferguson, the immediate AI opportunity is not primarily the technology itself. It is the physical infrastructure required to support AI computing.

In his new role, Adam Isenberg will lead InstaLILY’s engagement with distributors, deepen industry partnerships, and support the company’s continued expansion across the wholesale distribution market.

The DSG regional event will provide attendees with practical insight from distributors that are actively integrating AI into sales, operations, and customer service rather than simply evaluating the technology.

The companies that made the AI Top 25 distinguished themselves not by the software they bought, but by how they organized their businesses.

Many of the distributors recognized in the AI Top 25 spent years standardizing product information, customer records, and other core business data before expanding AI deployments across the enterprise.

For distributors, the findings suggest that interest in AI is increasingly centered on operational applications rather than experimental technology.

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.

The release is part of Cavallo’s broader strategy to build software specifically for wholesale distribution.

The funding comes as venture capital firms continue to back software companies focused on wholesale distribution, a sector that has drawn increasing attention as distributors invest in AI to improve inventory productivity, reduce working capital, and offset labor shortages.

The software is designed to interpret customer requests, identify products, recommend substitute items when products are unavailable, generate draft quotes and prepare customer emails using customer-specific pricing and catalog data. Sales representatives review and approve every quote before it is delivered to a customer.