State of the Industry 2026 View all Stories

Key Takeaways

  • Distributors are finding the greatest value in AI by starting with practical, everyday applications rather than waiting for a comprehensive strategy.
  • Successful AI adoption depends on combining experimentation, employee training and human oversight to improve efficiency.

Tom Goos has been retraining his brain.

Instead of heading first to a browser search bar, staring at his company’s analytics spreadsheet or even opening a notebook for a brain dump, the President and CEO of Counselor 2026 Best Place to Work Image Source (asi/230121) turns to Microsoft Copilot or OpenAI’s ChatGPT.

Creative Assistance

More one-off tasks like creative copy and art or video creation are still the most common use cases among distributors who have adopted AI.

How Distributors Use AI

“I try to make my brain go directly to AI,” he says.

For Goos, these AI tools are all about working smarter and faster, and, in an industry like promo, ultimately unlocking more creativity. His favorite use for generative AI is actually as a thought partner – almost as another colleague to help think through new ideas or identify gaps in a strategic plan. He also uses the app version on his phone so he can talk with it, rather than just type.

Katie Woznak, creative director at Liquid Screen Design (asi/254663), takes a similar approach. Outside of using generative AI for specific work tasks like creating mock-ups or helping with emails, she often turns to Claude to help time block and optimize her workday. She’ll plug in a list of daily tasks, and the AI will turn it into an efficient schedule. If she doesn’t finish everything, it will help prioritize the remaining tasks for the next day.

“I think a lot of people overlook that,” Woznak says. “They’re using it for deliverables right off the bat – write this email or give me this image – but they’re not using it to systemize what they’re doing.”

These less tangible applications are why attending (or hosting) formal AI training can be valuable. It was in a six-week AI prompting course through Gonzaga University that Goos first learned about using generative AI tools as a conversation partner. Liquid Screen Design staff are encouraged to book demos with various AI companies to explore tools that might fit their future workflows, Woznak says.

There are so many tools available, she adds, that it’s crucial to approach them with an open but neutral mindset. Experiment and explore, but don’t expect a miracle one-size-fits-all solution immediately.

“It’s one of those things where you don’t know what you don’t know,” says Scott Baker, COO of Counselor Top 40 distributor Kaeser & Blair (asi/238600), who’s set to run a Google Gemini training for the firm’s leadership later this summer.

Kylie Kost
Anchor AI with your human gut and your own expertise.”Kylie Kost, Brilliant (asi/146116)

It’s been a process to build up an overall AI strategy at a storied family-owned firm with a lot of “muscle memory” around how job functions have typically been completed, Baker says. That’s more than many industry firms can say; AI in the promotional products industry is lagging among distributors. Less than two-thirds of distributors (64%) report using AI – a percentage smaller than not only suppliers (78%) but also small businesses overall (76% according to a Goldman Sachs survey). Baker’s tech background means that he understands the importance of keeping pace with advances like AI. “We can either choose to be Netflix or Blockbuster,” he says. “I look at it like the microchip and the internet – it’s that kind of impact.”

Baker says it’s often helpful for people first being introduced to AI systems to see the flashy stuff. They might not need to ever actually write an email as Hulk Hogan – yes, that’s a real example Baker has used in demonstrations – but it gets the point across that AI can take on a set persona when the user directs it to do so. “People see that – and it’s stupid – but it helps them understand,” he says. “It helps them close that gap as to what AI can be.”

Cyber Guardrails

Image Source (asi/230121) President/CEO Tom Goos used AI to help build out his distributorship’s AI policy. The biggest surprise during the process? It offered suggestions for how to shore up Image Source’s internal SharePoint site to ensure the company’s private data isn’t available to other AI systems scraping the web. Cybersecurity and ransomware attacks – though not strictly AI-related – remain on distributors’ minds, with 85% of distributors expressing some level of concern.

Distributor Concern About Cybersecurity/Ransomware Attacks

Once that foundation is in place, it’s often easier to understand the specific efficiency opportunities AI can deliver. At Brilliant (asi/146116), for example, Growth Marketing Manager Kylie Kost is focused specifically on getting the right person the right message at the right time.

Without AI, delivering personalized marketing at scale across multiple platforms was more time and resource intensive. But Kost uses AI platforms that both help identify potential clients who have already signaled interest – by liking one of Brilliant’s social media posts or visiting the distributor’s website, for instance – and ensuring that they receive relevant, personalized messaging tailored to their purchasing history, company vertical or even job title.

“An events person is going to get completely different messaging than a sales leader because there are different use cases on how they use branded merch,” Kost says.

Human Capital

Half of distributors still report concerns about finding and retaining qualified workers in 2026 – figures that mirror last year’s results even as the labor market has softened. Prospective employees struggle with fewer job postings and increased competition for jobs that do exist, while hiring employers are inundated with (often AI-written) submissions from applicants without relevant experience, making it tough to find the right person for the job. The hiring paradox, though, is a reminder that as helpful as AI tools are for efficiency, they can’t replace the need for skilled humans in those open positions. “AI isn’t here to take your job,” Scott Baker, COO of Counselor Top 40 distributor Kaeser & Blair (asi/238600) often reminds employees. “It’s not here to create robots.”

Distributor Concern About Finding Qualified Workers

Distributor Concern About Retaining Best Workers

It’s worth remembering, though, that this type of personalization didn’t happen overnight. Kost put in significant back-end work to train the system on Brilliant itself, as well as to build out the various personas, scenarios and use cases that run the system. There’s also always a human reviewing the output to ensure prospective customers aren’t receiving irrelevant messaging.

But use of the tool has allowed Kost to cast a far wider net than she otherwise could have while still maintaining a thoughtful, targeted approach. “Anchor AI with your human gut and your own expertise,” she advises. “And then once you feel like it’s trained and smarter – over time – that’s when I’d lean into anything that’s automated.”

Product Presentations Reimagined With AI-Powered Inspire Design Studio in ESP+

The new AI-powered Inspire Design Studio within ESP+ helps transform product ideas into compelling branded concepts, creative campaigns and marketing assets – all without leaving the platform.

  • Create lifestyle images to place branded products into realistic photographic scenes, allowing customers to visualize merchandise in the places where they’d actually be used.
  • Automatically retrieve brand logos and artwork for existing and prospective clients directly within the Inspire Design Studio, eliminating the need to search websites or local files and making it easier to create virtual samples.
  • Generate image assets featuring multiple branded products – think banners, marketing graphics, illustrations and other promotional materials. While lifestyle images showcase individual products in realistic settings, the asset generator helps distributors visualize complete campaigns.

Get a demo of ESP+ Inspire Design Studio today.

State of the Industry 2026 View all Stories