Industry Insights

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.

The industry’s first evidence-based benchmark found only 26 distributors with AI operating in production. The companies at the top aren’t experimenting with artificial intelligence. They’re redesigning how distribution works.

Additional AI capabilities under development include conversational search, an AI-powered customer answering tool and faster, intelligent quoting

In a keynote fireside chat titled “The CIO’s AI Playbook: What BlueLinx Learned Building an AI-Ready Distribution Operation,” Gautam will discuss the infrastructure, data strategy and technology investments underpinning the company’s AI transformation.

For distributors, the European launch reflects the accelerating adoption of embedded AI within ERP platforms, with capabilities aimed at improving inventory planning, sourcing, fulfillment, financial workflows, and operational decision-making from within existing enterprise systems.