What Washington’s New AI Strategy Means for Wholesale Distribution

Photo by Tara Winstead on Pexels

On June 2, President Donald Trump signed an executive order titled "Promoting Advanced Artificial Intelligence Innovation and Security." The order states that it is U.S. policy to "promote AI innovation and security by working collaboratively with the private sector to modernize government and private sector information systems and harden them against external threats; to protect American ingenuity and intellectual property from exploitation and theft by adversaries; and to cultivate America's advanced AI-enabled capabilities."

According to ASA Vice President of Advocacy Steve Rossi, this is not the administration's first attempt to address AI policy. "This is the second version of an AI executive order that President Trump initially intended to sign last week but postponed to better address industry concerns," Rossi said. "The EO aims to strike a balance between government oversight and technological innovation."

While much of the order focuses on cybersecurity and the evaluation of advanced AI systems, it’s clear that policymakers view artificial intelligence as a strategic capability that will influence the future competitiveness of American businesses and industries.

Today, many distributors are already experimenting with and/or implementing AI-powered applications for various use cases throughout their businesses. The executive order emphasizes the cybersecurity risks associated with these new technology advancements.

AI systems rely on access to large amounts of information, including customer records, pricing data, inventory levels and supplier information, and it’s vital for wholesale organizations to protect these assets on a more proactive level than ever before.

The order discusses collaboration between government and private industry, reflecting the recognition that AI adoption must be balanced with safeguards that protect critical infrastructure and sensitive information.

One provision that may be particularly relevant to distributors is the proposed cybersecurity information-sharing clearinghouse outlined in the order.

"The clearinghouse provision is potentially interesting," said Nils Swenson, ASA's Director of Innovation & Technology. "If that gets built the way it's described as a coordinated, cross-sector vulnerability intelligence system, it could give our industry access to threat information they currently can't get on their own. The distribution industry isn't named explicitly, but we're deeply embedded in the supply chains that serve critical infrastructure. That makes us potential beneficiaries of what is being built."

Oftentimes, the greatest barrier to AI adoption is not the technology itself, but whether the organization has the operational foundation necessary to use it effectively. The companies that realize the greatest value from AI over the next several years will not be those chasing every new tool. Rather, they will be the organizations that invest in clean data, disciplined processes, employee training and cybersecurity readiness.