PPAI Magazine December 2024

Must Read | Engaging with AI Josh Gerads, brand manager at Crystal D, PPAI 100’s No. 88 supplier, compares AI to the California Gold Rush – everybody wants to get in on it. “At the same time, everyone has a slightly different definition of what AI is, few organizations really know everything it can do and many lack the time or resources to learn how to use it for their benefit,” Gerads says. Crystal D’s teams who focus on the customer experience, including sales and marketing, are currently exploring how technology like AI can make it easier to serve more customers. However, Gerads stresses that the St. Paul, Minnesota-based firm never wants to lose sight of the human aspect in the customer experience. “AI can increase job satisfaction and reduce turnover by creating efficiencies, but it can’t fully replace the human connection made between our Memory Makers and their customers,” Gerads says. “We take pride in the relationships we have with our customers, knowing them and their businesses well, and it’s something technology just can’t reproduce.” Ken Leslie, president of IMAGEN, says that PPAI 100’s No. 84 distributor primarily uses AI to support content creation for marketing, including writing and editing emails, social media posts and creating outlines for presentations. “There’s more that we could be doing to utilize AI tools, but while there are lots of resources available, the time it takes to both learn and implement them is a hindrance for our team,” Leslie says. “There are a couple of us on the IMAGEN team that are spending time each week keeping tabs on what is going on in the AI world, but internal expertise is a definite challenge for us.” With limited bandwidth to dedicate to researching options, Michael Wolaver, founder and captain of Magellan Promotions, says that PPAI 100’s No. 94 distributor will be taking a pragmatic approach to implementing AI. “What we grapple with is, beyond using ChatGPT to help edit content, what are the areas that AI can help create efficiencies for our business? After all, AI will only really help our business if it helps solve challenges with real results,” Wolaver says. • Half of suppliers report difficulties in integrating AI with existing systems, 31% express data privacy concerns, 22% claim employee resistance and 19% cite the high cost of AI technologies as other barriers to AI adoption. • System integration issues (35%), employee resistance (27%) and data privacy concerns (27%) are also challenges for distributors. “AI’s potential is undeniable, but firms are hitting roadblocks,” Bhat says. “Internal expertise and system integration stand out as the biggest hurdles to widespread adoption.” Raul Rodriguez, CEO of Merch.ai, a startup business service provider aiming to help promo companies incorporate AI into their specific needs, feels that these growing pains will require a consolidated perspective on the clearest ways the technology can help the industry. “We think AI will change the way everyone works, our industry included,” Rodriguez says. “However, there needs to be more AI tools built that are specific for the industry, easy to use with not much training required and actually efficient. A tool that meets that criteria will get mass adoption.” Potential AI Benefits For Suppliers Over the next three years, 83% of PPAI 100 suppliers aim to use AI to increase operational efficiency and improve customer experience. “As business costs continue to increase and labor becomes more challenging and expensive to secure, AI solutions are growing in importance,” says Matt Wagner, vice president of sales at Fields Manufacturing, PPAI 100’s No. 80 supplier. “They not only help improve efficiency and manage operational expenses, but also allow businesses to maintain the speed demanded in today’s marketplace. “As more early adopters emerge as experts and share their experiences,” Wagner adds, “it will become easier for those approaching AI with caution or limited expertise to understand and adopt these technologies.” Ken Leslie Matt Wagner Smile Studio AP / Shutterstock.com 32 • DECEMBER 2024 • PPAI

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