{"id":227,"date":"2026-05-16T10:33:03","date_gmt":"2026-05-16T10:33:03","guid":{"rendered":"https:\/\/coloradorelocationreport.com\/?p=227"},"modified":"2026-05-16T10:33:03","modified_gmt":"2026-05-16T10:33:03","slug":"whats-working-distributors-trade-tips-on-artificial-intelligence-during-denver-event","status":"publish","type":"post","link":"https:\/\/coloradorelocationreport.com\/?p=227","title":{"rendered":"What\u2019s Working: Distributors trade tips on artificial intelligence during Denver event"},"content":{"rendered":"
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Tamara Chuang<\/strong><\/p>\n

Business\/Technology Reporter<\/em><\/p>\n<\/div>\n<\/div>\n

When distributor Endries International added artificial intelligence to help automate a purchasing department task, it sounded good in theory.<\/p>\n

Read more Essay: An accent in the national anthem<\/a><\/p>\n

Instead of having employees chase down purchase orders from suppliers, emails were automatically sent to suppliers, who would reply to a monitored inbox that was read by AI. The AI would figure out the next steps, whether it was updating the system or notifying the person who needed to take care of it.<\/p>\n

\u201cA few months into it, we realized that we had just kind of automated chaos,\u201d said Jenni Detert, Endries\u2019 vice president of information technology during a panel at the Shift | The Future of Distribution conference this week at The Inverness Denver hotel.<\/p>\n

\u201cWhat we really should have done with AI was get to the root cause and why (this) was happening. You know, tell us if our order control should be different or analyze customer forecasts differently,\u201d Detert said. \u201cThat\u2019s a big takeaway for us, just really understanding the process before you introduce AI and try to scale.\u201d<\/p>\n

Automation has long been part of the distribution industry that moves goods that last mile between producers, manufacturers, businesses, retailers and consumers. So expectations that AI would help improve the bottom line were high. But investments haven\u2019t always delivered, at least not yet, according to a survey of 426 distribution companies by Modern Distribution Management, a research firm owned by the National Association of Wholesaler-Distributors.<\/p>\n

The difference between expectations and reality was stark. While 73% expected a minimum of 2% pricing and margin improvement, only 16% hit that mark. Many have invested or are piloting AI systems but the survey showed 54% said they didn\u2019t have AI on their roadmap.<\/p>\n

Companies shouldn\u2019t dismiss AI as a failure, said Patti Rausch, vice president of research and innovation at NAW, the trade group behind the conference, which discussed AI tools already in use.<\/p>\n

\u201cIt\u2019s telling you that AI and distribution is still in very early stages,\u201d Rausch told the crowd. \u201cAnd that gap between expectation and reality is more of a timing gap and not a value gap. The 16% who\u2019ve hit those numbers, they just started earlier. They built organizational habits around the technology. They treated change management \u2026 as seriously as they think about vendor selection. They didn\u2019t just buy a tool. They built a capability.\u201d<\/p>\n

Focus on proven tools and then make sure your staff understands how to use it and how it\u2019s used, she advised. AI isn\u2019t a magical solution that will, for example, adjust delivery routes on the fly depending on traffic. That is not helpful to distributors, she pointed out, because delivery trucks are loaded based on the order of the stops.<\/p>\n

\u201cYou can\u2019t skip stop two to go to stop seven because an algorithm says traffic is better,\u201d said Rausch, adding that it\u2019s also dangerous for drivers to stop in traffic to dig out a package. \u201cThe philosophy is to make the planning smarter before the truck leaves, not after. Use better data upstream \u2014 weather and traffic patterns, historical delivery times. \u2026 That\u2019s the kind of nuance that doesn\u2019t usually make it into a (sales) deck.\u201d<\/p>\n

The industry has used AI and automation long before ChatGPT became a household name a few years ago. Predictive AI tracks machinery nearing its end of life, such as brakes on a forklift. Wearable technology integrated in a hard hat or vest can collect data that AI analyzes in real time to send an alert to a worker approaching an unsafe situation. Robots are already retrieving products in warehouses, like Amazon, so humans don\u2019t have to, said NAW president Eric Hoplin who before a congressional committee in February on how AI technology is already in use to improve worker safety.<\/p>\n

\u201cEmployees are embracing AI and these tools that they\u2019re bringing because it\u2019s part of the culture of safety that helps them make it even safer for themselves,\u201d Hoplin said in an interview Wednesday.<\/p>\n

There have been other economic challenges in recent years, such as high tariffs that impacted global trade. Declining consumer demand has affected spending. But businesses are spending on automation and investing in technology, and that helped the industry grow into an estimated $8.7 trillion market, up from $8 trillion more than a year ago, he said.<\/p>\n

He credits recent growth to the big tax breaks law passed last year that aimed to reduce taxes and incentivize businesses to invest in research and development. That had a significant impact nationwide for all industries, apparently. Between July and November, U.S. Treasury data showed that revenue from corporate income tax had dropped by one-third, or $52 billion, from the same period a year earlier, The New York Times reported.<\/p>\n

\u201cFrom that perspective, distributors are bringing more and more warehouses with more capacity, more trucking capacity and investing more in technology. And our customers are doing similar things,\u201d Hoplin said. \u201cThere are a number of things that have hindered growth, but I think we\u2019re seeing some of that spending have net growth in the economy this year.\u201d<\/p>\n

Sun economy stories you may have missed<\/h2>\n

\u2794 101 bills that passed and failed in Colorado\u2019s legislature this year that you need to know about. <\/strong>The Colorado Sun and Colorado Capitol News Alliance parsed through nearly 650 pieces of legislation debated in the legislature this year to find the ones that will most directly impact people\u2019s lives \u2014 or would have had they passed >> <\/strong>Read story<\/strong><\/p>\n

\u2794 Sheep win in San Luis Valley livestock vs. billionaire ranch owner battle.<\/strong> A ruling in the dispute strikes a compromise, allowing livestock grazing but prohibiting firewood collection around the ranch owner\u2019s new home >> <\/strong>Read story<\/strong><\/p>\n

\u2794 Colorado ranchers are expanding their footprint with invisible fencing that uses satellites to protect their cows.<\/strong> A virtual fencing company out of New Zealand aims to help ranchers graze cattle \u201canywhere they can see the sky\u201d >> <\/strong>Read story<\/strong><\/p>\n

\u2794 Colorado voters will be asked to give up billions in TABOR refunds to boost K-12, other programs for kids. <\/strong>Democrats in the legislature referred a measure to the November ballot that would ask voters to increase the state\u2019s cap on government growth and spending by billions of dollars >> <\/strong>Read story<\/strong><\/p>\n

Read more Watch: Colorado meteorologists discuss weather prediction challenges at Colorado SunFest 2026<\/a><\/p>\n

\u2794 Rumors of ruined Western Slope peach crop were greatly exaggerated, growers say. <\/strong>A cold snap did destroy the peaches in North Fork Valley orchards, but the remaining 80%-90% of the crop will start hitting fruit stands in June \u2014 much earlier than normal >> <\/strong>Read story<\/strong><\/p>\n

\u2794 Democrats abandon rollback of business tax breaks to fund family tax credit after Colorado governor\u2019s veto threat. <\/strong>House Bills 1221 and 1222 were killed in the Senate Finance Committee on Monday at their sponsors\u2019 request in response to a veto threat from Gov. Jared Polis >> <\/strong>Read story<\/strong><\/p>\n

\u2794 Bill reauthorizing Public Utilities Commission races through state Capitol. The story is what\u2019s not included.<\/strong> Xcel, Black Hills, some businesses backed failed attempts to amend the bill to grow the commission to five members in the interest of \u201cideological diversity\u201d >> <\/strong>Read story<\/strong><\/p>\n

\u2794 Colorado\u2019s fierce two-year fight over AI regulation ends with watered-down law, little fanfare. <\/strong>Companies, governments and other groups that create and use artificial intelligence will no longer have to disclose how their AI systems help make decisions on things like hiring, loans and housing >> <\/strong>Read story<\/strong><\/p>\n

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Be a pal and share the Sun<\/strong><\/mark> Here\u2019s the link to what they\u2019re missing!<\/p>\n<\/div>\n<\/div>\n

Other working bits<\/h2>\n

\u2794 Boulder\u2019s getting a quantum computer lab<\/strong>. Maryland-based IonQ Inc. picked Boulder to be home to a new 22,000-square-foot quantum research and development lab. The ribbon-cutting ceremony was Thursday, and the plan is to have the first quantum computer installed this year, allowing \u201cIonQ to design, test, and iterate on new generations of its semiconductor ion trap chips,\u201d the company said in a statement.<\/p>\n

The lab is located at 1685 38th St. near the intersection of Foothills Parkway and Arapahoe Avenue and occupies two floors of Boulder 38, a new 168,000-square-foot research campus with lab and flex space that targets science tenants. IonQ is amassing quantum technology companies and building a quantum network to produce the next-generation type of computing. Earlier this year, it acquired Oxford Ionics, which had a Colorado presence. Other local operations include IonQ Space Missions in Louisville and IonQ Optical Communications in Broomfield. In January, IonQ employed 95 workers in Colorado.<\/p>\n

IonQ received a number of local and state incentives, including a Job Growth Incentive Tax Credit valued up to $2.8 million if the company adds 150 net new jobs in eight years. Anticipated jobs are quantum scientists, system engineers and operations managers with an average annual wage of $168,422, according to the state\u2019s Economic Development Commission.<\/p>\n

The company also was approved for additional income tax credits of up to $1 million because it is in the Boulder CHIPS Zone, which the EDC established in November.<\/p>\n

\u2794 State to cover up to $2,000 of costs to get certified for contracts. <\/strong>The state\u2019s Minority Business Office on Friday announced Certify Colorado, a new program to help small businesses offset certification costs in order to apply for government and corporate contracts. Getting nationally certified can set a small business back by $250 to $5,000. This program covers up to $2,000 per business.<\/p>\n

Eligibility is based on a company\u2019s business filings being in \u201cGood Standing\u201d with the Secretary of State\u2019s Office, submitting a business strategy and completing the Certifications 101 course. The state\u2019s Economic Development Commission approved $250,000 to fund the program. Funds are available until the money runs out. >> <\/strong>Details<\/strong><\/p>\n

\u2794 New makerspace for Grand Lake. <\/strong>A 3,000-square-foot facility in Grand Lake is stocked with tools for woodworking, leatherworking, silversmithing, boat building and more, according to the creatives behind the new makerspace. That would be the Rocky Mountain Folk School and the Grand Lake Creative District.<\/p>\n

The Grand Spirit Makerspace was just an idea in 2019 and after a survey that collected 350 responses, it became a community-driven project that broke ground last September. Beyond the makerspace, the project includes nine live\/work rentals offering affordable prices to artists and locals who contribute to the cultural life of Grand Lake. Eight of the units have a storefront or studio space. The grand opening is scheduled for May 23 at noon. >> <\/strong>Details<\/strong><\/p>\n

Got some economic news or business bits Coloradans should know? Tell us: <\/em>cosun.co\/heyww<\/em><\/p>\n

Thanks for sticking with me for this week\u2019s report. As always, share your 2 cents on how the economy is keeping you down or helping you up at cosun.co\/heyww. ~tamara<\/em><\/p>\n

Miss a column? Catch up:<\/strong><\/h3>\n