PPAI Magazine December 2024

Must Read | Engaging with AI Promo’s AI Challenges And Opportunities PPAI Research shows that while most PPAI 100 firms are engaging with AI in their business operations, some common hurdles are preventing widespread adoption. By John Corrigan & Jonny Auping Most PPAI 100 companies are exploring artificial intelligence tools, signifying a new chapter in the promotional products industry’s digital transformation. According to the latest data from PPAI Research, 92% of PPAI 100 suppliers and 87% of PPAI 100 distributors are engaging with AI in their business operations. • Suppliers report that AI is driving significant gains in marketing (74%), enhancing customer service (37%) and optimizing sales processes (28%). • Distributors are also benefitting from using AI for marketing purposes (88%), followed by sales processes (36%) and customer service support (21%). “Promo firms are betting big on AI to streamline operations and elevate customer experiences, with cost savings and revenue growth following close behind,” says Alok Bhat, market economist and research lead at PPAI. Challenges In AI Implementation The majority of PPAI 100 suppliers (69%) and PPAI 100 distributors (65%) report that a lack of internal expertise is their most significant barrier to AI adoption. “You won’t always find AI expertise within your technology team,” says Phil Gergen, chief information officer at Koozie Group, PPAI 100’s No. 9 supplier. “Talk to your team members to find out who is already using these tools on their own and how they are using them. If used correctly, AI can help any role in your organization be more efficient and successful.” Smile Studio AP / Shutterstock.com Alok Bhat Phil Gergen 30 • DECEMBER 2024 • PPAI

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