AI investment outpaces revenue for TD SYNNEX resellers

TD SYNNEX has published research showing a wide gap between channel investment in artificial intelligence and the revenue partners generate from it. The study found this was the largest investment-to-revenue gap among the technologies surveyed.

Its fifth annual Direction of Technology report found that 66% of technology resellers are increasing investment in AI solutions and services, while 21% said AI contributes a meaningful share of revenue. Based on responses from more than 1,500 channel partners across 45 countries, the report also found that only 13% said most end-customer AI pilots or proofs of concept progress to scaled production deployments.

The findings point to a market in which spending on AI is rising faster than commercial returns. For resellers, enthusiasm for AI has yet to translate into broad-based income at the same rate as in other parts of the technology market.

Barriers to wider deployment remain substantial. Among those surveyed, 42% cited security, legal or governance concerns as the main obstacle to moving AI projects into production, while 39% pointed to an unclear business case or return on investment. Another 35% said customers lack the internal skills needed to manage AI after deployment.

The report set those findings against broader channel trading conditions. It found that 77% of surveyed resellers reported revenue growth, up 10 percentage points from the previous year, while 67% reported improved margins. Even so, 44% identified pricing pressure and margin compression as the leading challenge to scaling their business.

AI was not the only area attracting investment. Cybersecurity remained the most widely backed category, with 72% of respondents increasing spending, followed by cloud at 68% and AI at 66%. That suggests channel partners are still spreading investment across several technology areas rather than focusing solely on generative AI and related services.

Trust and advice

The survey also examined what helps resellers win AI-related business. Existing relationships and trust ranked first, cited by 45% of respondents, ahead of the ability to explain AI in business terms at 37%, knowledge of a customer's industry or business problem at 34%, and strong technical certifications or expertise at 32%.

This suggests channel firms see commercial success in AI as tied not only to technical knowledge but also to customer confidence and advisory work. Distributors also have a role in helping partners build those skills. Among respondents, 29% valued pre-sales technical expertise and consultation from their main distributor, 26% valued help to build new practices in areas such as AI and security, and 28% relied more on distributor enablement programmes to address the IT skills gap.

Patrick Zammit, Chief Executive Officer, TD SYNNEX, said the data showed how buying decisions in AI are being shaped by confidence as much as technical knowledge.

"Trust has always mattered in this business, and this year's research reinforces that," said Patrick Zammit, Chief Executive Officer, TD SYNNEX. "Forty-five percent of those surveyed say existing relationships and trust are the leading reason they win competitive AI deals, ahead of technical capabilities or certifications. As technology continues to change, the partners who build on that trust and continue to expand their capabilities have a tremendous opportunity ahead."

From pilot to production

A central theme in the research is the difficulty of moving AI from trial projects into mainstream use. The low proportion of pilots reaching scaled deployment suggests customers remain cautious about operational, regulatory and commercial risks, even as interest in AI tools spreads more widely.

The report also found that partners using AI more deeply in their own operations tend to report stronger growth, higher margins and better results in helping customers move projects into production. While the study did not quantify those gains in detail, it drew a link between internal use and stronger execution in customer-facing work.

Jill Kermes, Corporate Vice President, Global Corporate Communications and Citizenship, TD SYNNEX, said the research was intended to show where commercial returns are failing to match market momentum.

"Each year, the fifth annual Direction of Technology report highlights how the channel is responding to changing market realities," said Jill Kermes, Corporate Vice President, Global Corporate Communications and Citizenship, TD SYNNEX. "What's particularly interesting this year is how the definition of value is shifting. The research goes beyond identifying which technologies are gaining momentum to examine what separates investment from meaningful business results. By bringing together perspectives from surveyed resellers around the world, the report provides practical insight into where opportunities are emerging, what is preventing progress and how surveyed resellers can position their businesses for long-term growth."

The report also includes regional executive summaries for North America, Europe, Asia-Pacific and Japan, and Latin America, reflecting differences in channel conditions and customer demand across markets.