Chairman's Message: Leading Through the AI Era

Artificial intelligence is poised to transform and streamline business operations, but the real power still lies in our people.

By Marc Tell
CEO, Sam Tell Companies
Chairman, FEDA

For business leaders, artificial intelligence (AI) is an exciting frontier. It promises to make our organizations dramatically more efficient and responsive, while helping transform all the data our teams generate every day into competitive advantages that can be understood and automated. But as groundbreaking as this technology is, it’s also understandable that some feel uneasy about delegating aspects of our operations and customer service to systems that are still being understood.

Many companies are now grappling with how to properly manage independently operating AI to ensure they don’t act outside of parameters or policy, while others worry about where their proprietary data is being shared and the potential to replace human workers. These concerns are all valid and should be addressed in various ways, including through carefully considered legislation. I’ve also heard these same arguments numerous times about similarly disruptive technologies. When the internet, cellphones and social media first appeared, they all had their own detractors and warnings. And yet, our society reliably adapts to these kinds of technological advancements and thrives.

As we consider how to implement AI into our businesses, these past examples can serve as useful guidelines. For distributors and other businesses, the key to leveraging new technologies is having grounded expectations. As much hype as there is surrounding AI, it’s not likely to be the panacea that solves every challenge or frustration. Still, if your business is thoughtful about how it can streamline processes, then there are many ways it can help your people cover more ground, work more quickly and engage customers more effectively.

At Sam Tell Companies, our team members are already using AI solutions, such as Microsoft Copilot, for internal communications and to enhance customer outreach, but we’re also exploring how it can automate parts of our work. We’re developing an AI solution that will aid our design process by removing some of the manual work it takes to bring a facility from concept to blueprint. By incorporating inputs like a client’s menu, available space and their preferred equipment placement, we’ll be able to generate an initial layout through the power of machine learning. Once it’s ready, this solution will optimize our design process, reducing costs and speeding up the timeline for the customer.

I’m excited about the potential this kind of technology offers, but I’m also certain it won’t replace a single Sam Tell employee. As digital economy expert Erik Brynjolfsson will explore in his special guest presentation at the 2025 FEDA Annual Executive Leadership Conference, the real power of AI lies in its ability to augment, not supplant, employee capabilities. It’s possible we might have to repurpose some of our forces as streamlining occurs, but if that means they end up in new positions where they can be a greater benefit to the end user, then I’m all for it.

As tempting as it may be to view AI as a substitute for employees, the brain drain that occurs after letting people go often does not work out well. When companies later try to scale back up or tap into new markets, the knowledge and talent loss they’ve experienced end up becoming a constricting force. We still need people to do the work that distinguishes our companies in the market. AI will soon be essential to helping our team members reach their goals, but it can’t replicate their personal motivations or the meaningful ways they help shape a positive company culture that serves customers.