AI’s Customer Service Impacts, and How to Evaluate Tech Partners

In this sponsored MDM Amplify podcast episode, Canals Co-Founder and CTO Erez Arnon joins to unpack what MDM’s latest AI research reveals about customer service as one of distribution’s highest-impact use cases. Just as importantly, Arnon shares practical guidance on how to vet AI vendors in a crowded, hype-filled market, including key red flags and must-have proof points.

As distributors move deeper into AI application, this MDM Amplify podcast episode with Canals Co-Founder and CTO Erez Arnon explores two critical themes: where AI is actually delivering value in customer service, and how distributors can effectively evaluate technology providers in an increasingly crowded market.

The conversation is grounded in MDM’s “In Pursuit of Value: Where 400+ Distributors are Investing in AI Today” research report.

One of the clearest takeaways from that research: customer service has emerged as a top-tier AI opportunity area, with strong interest but still early-stage adoption. That gap reflects both the promise and the friction of AI today — particularly when it comes to translating expectations into measurable ROI.

Arnon pointed to tangible performance gains in areas like order entry speed, quote turnaround and error reduction — all of which contribute to improved customer responsiveness and competitive advantage. But he also emphasized that many distributors are still navigating the “gold rush” phase of AI, where vendor proliferation and inconsistent outcomes make decision-making difficult. That’s where the second core theme of the discussion becomes essential: how to properly vet technology partners.

Arnon offered a practical framework centered on verification over marketing. “Evaluate things that you can verify and don’t trust anything that you can’t,” he advised. Key steps include insisting on live product demonstrations — not just curated standard demos — using your own data, conducting reference checks that probe for real ROI, and evaluating the depth and experience of a provider’s technical team.

The stakes are high. As Arnon noted, distributors are increasingly reporting failed implementations that cost time and internal resources — making disciplined vendor evaluation more important than ever.

Ultimately, the message is twofold: AI is already reshaping customer service workflows, and early adopters are gaining an edge. But success hinges not just on adopting AI — it depends on choosing the right partner and starting with focused, high-impact use cases that can build internal momentum.