Many executives approach AI with one of two mindsets: either they're overwhelmed by the endless possibilities, or they think implementing a few automation tools means they're covered. Both miss the real strategic challenge.
The question isn't whether your company should use AI – it's how AI will reshape your competitive position over the next three to five years, and whether you'll be leading that change or reacting to it.
The Strategic Reality Check
At the recent Distribution Strategy Group's Applied AI for Distributors conference I attended, a pattern emerged among mid-sized distributors. Excluding the early adopters who are already deep into AI implementation, two distinct groups stood out:
Group 1: Leadership teams overwhelmed by AI's vast potential, unsure where to start or what truly matters for their business.
Group 2: Companies focused on tactical efficiency gains like chatbots, order automation, and basic automation believing they've addressed the AI imperative.
Starting with the Right Question
Instead of starting with technology capabilities and trying to work toward business value, take a more strategic approach. Answer the question, “what are the business threats and opportunities”, then evaluate how AI serves those priorities.
- Manufacturer relationships: Your key suppliers could use AI to serve smaller accounts directly that they previously couldn't handle economically. Which of your manufacturer partnerships are most vulnerable?
- Customer intelligence: Competitors might be using AI to understand your customers' buying patterns and needs better than you do. What customer data advantages could you be losing without realizing it?
- Operational advantages: AI-enabled competitors could outperform you on inventory optimization, demand forecasting, or pricing precision. Which of your current operational strengths feel most at risk?
These aren't technology questions – they're strategic positioning questions that will determine your company's future.
Moving from Reactive to Strategic
The companies that will thrive aren't necessarily those with the most sophisticated AI tools. They're the ones who systematically evaluate where AI creates genuine competitive advantage versus where it simply improves efficiency.
There's a crucial difference:
- Efficiency improvements make your current operations better
- Strategic advantages change the competitive game entirely
Both matter, but strategic defense and offense must come first. You need to protect your core competitive position while identifying where AI can create new moats around your business.
The Framework That Changes the Conversation
This is why we developed The Strategic AI Risk & Opportunity Assessment to help leaders move from tactical AI thinking to strategic AI positioning.
The assessment guides you through three critical evaluations:
1. Strategic Threat Assessment: Where could AI-enabled competitors or suppliers erode your current advantages?
2. Strategic Opportunity Assessment: Where could AI help you build stronger competitive moats and customer relationships?
3. Strategic Prioritization: How do you sequence AI initiatives for maximum competitive impact?
This isn't about choosing software. It's about positioning your company for sustained competitive advantage in an AI-accelerated market.
Ready to evaluate your strategic AI position? Access the Strategic AI Risk & Opportunity Assessment here.