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AI is Forcing the Culture Shift

Access to technology is aplenty, but sustaining adoption is challenging.

Hi, I’m Lily. I live in the world of distribution, where access to technology is aplenty, but sustaining adoption is challenging. New systems are piloted, results look promising, and then teams return to the old routines of spreadsheets, approvals, and workarounds. Each layer meant to create control often adds friction instead.

There is no question that AI can deliver. The issue is whether organizations have the determination and trust to let these new workflows stick.

September is the season of decisions. The pressure is mounting, and the calendar is shrinking. The operators who take change management seriously will be the ones who turn adoption into margin before the year closes.


If you only read one thing this week, it is this:

The recent SRS Distribution Inc. x InstaLILY AI Innovation Summit in Dallas underscored a unifying theme: change management.

This concept was a recurring thread throughout the event. It was evident in Kent Gardner's firsthand account of guiding hesitant teams, in Cory Gundberg's cautionary remarks about the industry's critical inflection point, and in every panel where leaders discussed the accelerating pace of technological evolution. The consensus was clear: the technology is ready for implementation, but resistance to change could prove detrimental.

Leaders recognize that AI's primary role is to amplify human capabilities. However, without cultivating the organizational trust and discipline necessary for new workflows to take hold, progress will inevitably stall, and competitors will gain a significant advantage. Ultimately, effective change management is not just an option but a crucial prerequisite for the successful adoption of AI.


What Operators are Whispering About

Physical AI Drives 23% Growth in Factories

A new report predicts 23% annual growth through 2030 for “physical AI” in manufacturing. These systems combine robotics, sensors, and machine learning that can perceive, decide, and act beyond rigid pre-programmed automation. Combined with the right infrastructure, skilled labor and security measures, physical AI can be leveraged to help address labor shortages, rising costs, and supply chain disruptions.

AI Insurtech Pathwork Lands $3.5M

Insurtech startup Pathwork has raised a $3.5 million seed round, led by Costanoa with participation from Logos Fund, American Family Ventures, Meridian Ventures, and key industry angels, to scale its autonomous, AI-powered distribution platform aimed at the $160 billion life and health insurance market. The fresh capital will be used to accelerate adoption among brokers and carriers nationwide.

Supply Chains Rewire under AI and Disruption

AI is converging with climate pressures, geopolitical shifts, and rising consumer expectations to rewire supply chains. The focus is moving from pure cost cutting to resilience and agility by investing in predictive analytics, diversified sourcing, and real-time visibility. Operators are learning that reliability is now as critical a differentiator as price.


What‘s In My Ears

Agentic AI Comes for Manufacturing with Peggy Smedley

In this episode of the Peggy Smedley show, Peggy Smedley outlined how virtual AI agents and embodied agents are redefining manufacturing. Early adopters are already reporting savings, with nearly 90% planning deployments. However for factories to become intelligent and adaptive, it is important to have a cultural change.


Lily’s Quick Take

This week makes one thing plain:

AI is not the hurdle, adoption is.

The market is growing fast, the ROI is proven, and even agentic AI is edging from lab to floor. But unless leaders win trust and build discipline into how teams work, new systems will collect dust while competitors surge ahead.

Change management isn’t paperwork. It’s profit.


Catch Us at the NAW Innovators Summit 2025 this Week!

We’re excited to return to the National Association of Wholesaler-Distributors Innovators Summit this week in Austin!

The summit will have our Co-Founder and COO, Sumantro Das, and our Chief of Staff, Sasha Newman-Oktan present on all three days. As part of the Research, Breakthroughs & Next-Gen Solutions showcase on Day 2, InstaLILY AI will share how agentic AI is scaling through enterprise adoption and how our InstaWorkers make legacy systems modern.

To Book a Private Meeting with InstaLILY at NAW, download the NAW Distributors App!

Where: Omni Hotel Downtown, Austin, TX

When: September 15-17, 2025