Artificial intelligence is no longer an abstract concept for wholesale distributors—it’s a business imperative. That was the central message from Don Sarno, senior vice president of digital enterprise Americas at Sonepar, during his keynote at the third Applied AI for Distributors conference on June 25 at the Chicago Marriott O’Hare.
“AI is moving at light speed,” Sarno told attendees. “There is a lot of noise, but we must focus on what value the technology will deliver. If you want to lead, you need a real strategy, not just experimentation.”
Sarno’s address offered a rare behind-the-scenes look at how one of the world’s largest electrical distributors is using AI to drive digital transformation at scale. Sonepar operates across 15 U.S. brands and generates $16 billion in sales in the U.S.—part of its $36 billion global footprint.
According to Sarno, distributors today face three options when it comes to AI: lead, follow, or get out of the way. But leading requires more than adopting tools—it demands an enterprise-wide strategy with clearly defined ROI, governance, and buy-in from sales, marketing, technology, and operations.
Key pillars of Sonepar’s AI strategy include:
- Business alignment: All AI initiatives must drive measurable business outcomes.
- People and process: Change management starts at the grassroots, with associates trained in Copilot tools and encouraged to explore AI through “citizen development.”
- Technology: A mix of in-house and third-party AI applications selected based on their ability to deliver competitive differentiation.
Sonepar’s AI journey began with pilot projects focused on pricing, cash flow forecasting, order creation, and invoice reconciliation—and quickly expanded. Copilot, Microsoft’s AI assistant, initially supported 600 users in 33 countries, saving an average of 30 minutes per associate per day and achieving an 80% approval rating. Specialized Copilot agents are currently being tested in sales and help desk functions.
The company’s decentralized structure—15 operating companies and up to 10 different ERP systems—presented major data-harmonization challenges. Early machine learning projects failed due to inconsistent data definitions, prompting the development of a national data platform. “AI only knows what it’s taught,” Sarno emphasized, underscoring the importance of governance.
To manage its expanding AI program, Sonepar created a global AI Board responsible for strategy, budgets, and solution portfolios. Each of the 15 active AI solutions is managed locally to ensure accountability. Responsible AI practices, including transparency and data security—are central to the program, with written usage guidelines shared company-wide.
Sarno noted that AI initiatives often fail—not because of the technology, but because they don’t deliver value. At Sonepar, success isn’t measured by headcount reductions but by improved customer relationships, increased sales efficiency, and stronger margin protection. AI’s role, he said, is to automate, augment, and amplify business performance.
Even as more than 30% of Sonepar’s sales are now digital, Sarno emphasized the company’s commitment to creating more value and equipping employees with better tools and insights.
“We’re not here to cut jobs,” Sarno said. “We’re here to create a smarter, faster, more responsive business.”
As AI adoption accelerates across the industry, Sarno urged distributors to move beyond curiosity to commitment. “This is not a one-time project,” he said. “It’s continuous learning. If you want to lead, your AI strategy must evolve with your business.”
Additional takeaways from Sarno’s keynote:
- AI is creating value at Sonepar through a blend of automation, augmentation, and amplification.
- The company applies AI across three strategic focus areas:
- Workplace: Automating routine tasks and enhancing content creation
- Cybersecurity: Real-time monitoring for AI-driven threat detection
- Business Transformation: Process automation and personalized experiences
“AI must be delivered for differentiation,” Sarno concluded. “It’s only as good as what you feed it.”
Don’t miss any content from Distribution Strategy Group. Join our list.
