WINTER 2020

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THE DISTRIBUTOR’S LINK
Benj Cohen
Benj Cohen founded Proton.ai to help distributors harness cutting-edge AI. He learned
about distribution firsthand at Benco Dental, a business started by his great grandfather.
Later, while studying Applied Math and Data Science at Harvard University, Benj saw an
opportunity to supercharge distribution with AI. To learn more about how Proton can lift
distributors total revenue by 10% schedule a demo at proton.ai or email Benj directly
at benj@proton.ai.
THE IMPACT OF AI FOR
FASTENER DISTRIBUTORS
Companies like Amazon and Netflix use cuttingedge
Artificial Intelligence (AI) tools to drive massive
growth and disrupt business-to-consumer (B2C) markets.
Distributors have been slow to adapt this technology,
but change is coming. B2B distributors that leverage the
power of AI have the potential to turbocharge revenue
and disrupt their own markets. Those that fail to do so
will risk getting left behind.
Distributors today must
understand what AI is and
how it can be used. Broadly
speaking, AI is any form of
intelligence demonstrated
by machines. AI programs
analyze aggregated data and
perform specific tasks. The
more information they have,
the more effective they are at
their assigned jobs.
Many people benefit from this type of technology
without even knowing it. Daily conveniences such as
email spam filters, mobile check deposit and voice
recognition are all made possible by AI.
But where AI technology is useful for individuals, it
is something of a kingmaker for businesses. Amazon
uses AI to power its recommendation engine, a tool that
generates 35% of the giant’s e-commerce revenue. The
world’s most popular video game, Fortnite, relied on AI
to attract players (250 million of them) and profits ($3
billion in 2018). And, Netflix uses AI to keep 148 million
CONTRIBUTOR ARTICLE
paid users hooked on its service.
Amazon, Fortnite, and Netflix are massive by
traditional standards, but they’re not actually that
unusual in today’s landscape. AI creates cycles of positive
momentum, so when companies employ AI successfully,
they grow exponentially. When subscribers watch Netflix
shows, for example, the streaming service collects
data on viewer preferences,
allowing it to refine its
recommendations and produce
better programming — all of
which lead to more viewed
shows, more data, and more
subscriptions.
The two key takeaways
here are that many different
businesses — including
distributors — can benefit
from AI, and that the technology becomes more effective
and more accurate when fueled with more data.
AI will positively impact distribution in three key
places: at the point of sale, throughout the supply chain
and within internal processes.
First, AI will allow distributors to evolve from order
takers into order makers; that is, smart technology
will identify patterns in customer purchases to make
product and next-action recommendations based on
data (this can be very powerful; remember, Amazon’s
search recommendations generate 35% of sales
revenue).
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