The rise of artificial intelligence (AI) is reshaping how technology solutions reach customers – and nowhere is this more evident than in the world of value-added resellers (VARs) and distribution channels. For decades, VAR networks have been critical in industries like construction technology (ConTech), helping software vendors expand their reach and delivering added services to end-users. (Autodesk, for example, built a 25+ year channel program enabling partners to sell and support its CAD/BIM tools .) Now, as AI-driven solutions enter the mainstream, the rules of the game are changing. Companies that simply stick to traditional software sales may struggle; those that embrace AI’s potential and rethink their channel strategy stand to win big. This article explores how AI is changing VAR distribution in construction tech and what it takes to be positioned as a winner – from lowering customer switching costs to enabling channel partners to step up from the SaaS era to the AI era.

AI is transforming the value-added distribution landscape

Channel partners and VARs are already under pressure from shifting market dynamics, and AI accelerates these shifts. The broad move to cloud and software-as-a-service (SaaS) models has made customers “less ‘captive’” to any single vendor, squeezing VAR margins and forcing a pivot from selling stand-alone products to delivering comprehensive solutions . In this context, AI represents both a disruptive force and a new opportunity:

• Embedded AI in incumbent products: Major construction software vendors are now baking AI capabilities directly into their platforms. For instance, Procore has rolled out AI-powered project management assistants, and Autodesk is introducing AI across its Construction Cloud and design tools . This means VARs must update their playbooks – they’re no longer just selling licenses or cloud subscriptions, but also educating customers on AI features and new workflows. The upside is that AI can make these products more compelling (e.g. automatic risk predictions, generative design suggestions), but only if the channel can convey that value.

• New AI-native solutions: At the same time, a wave of AI-focused startups in ConTech is emerging with offerings that promise to automate or augment complex tasks (from bid leveling to safety monitoring). These innovators often seek partnerships to reach the fragmented construction market. A recent example is Stack Construction Technologies partnering with Pine Services Group – an umbrella of ERP software VARs (including Alliance Solutions Group, ETHOSystems, NexTec, Alta Vista Technology, i-Tech, and others) – to bring AI-powered preconstruction tools to contractors . By joining forces with VARs who have deep client relationships in construction, Stack extended its cloud takeoff and estimating platform to a much broader audience . Such alliances illustrate how AI is blurring the line between software vendors and service providers in distribution: the most forward-thinking VARs are adding cutting-edge AI solutions to their portfolio, while AI startups are leveraging established channels for faster market entry.

• From Products to “AI-as-a-Service”: As AI solutions often require ongoing data feeds, model tuning, or cloud services, the business model for distribution is shifting toward subscriptions and managed services rather than one-off sales. Leading channel organizations have already been evolving in this direction – moving from selling “boxes” to offering ongoing solutions and support  . AI accelerates this trend. Distributors that once focused on deploying software might now find themselves providing continuous AI-driven insights or maintenance. In effect, the value-add is increasing: instead of just implementing software, VARs can offer AI-powered analytics, predictions, and process automation as part of their service bundle. Those that invest in these capabilities can differentiate themselves sharply from resellers stuck in the old model.

The winners in this new landscape will be those who recognize that selling AI solutions is not business-as-usual – it demands updated skills, closer vendor-partner collaboration, and often a consultative approach to delivering measurable outcomes (e.g. cost savings, efficiency gains) rather than just software features.

Enabling VARs to step-up from SaaS to AI

The transition from selling traditional software (even cloud/SaaS solutions) to selling AI solutions is non-trivial for channel partners. It requires new knowledge, new value propositions, and often a new way of engaging with customers. Enabling VARs to “step up their game” in the AI world is therefore vitally important for vendors aiming to scale their AI products. Strategy alone isn’t enough – execution and enablement on the ground level will separate winners from also-rans.

Comprehensive training and knowledge transfer: A VAR cannot effectively sell or support what it doesn’t fully understand. Vendors must invest in educating their channel on AI – not just on product features, but on underlying value and use-cases. This includes training reseller sales teams on how the AI solution solves problems (e.g. “Our AI predicts schedule delays 3 weeks in advance”), training technical staff on implementation and data requirements, and even training support teams on handling AI-related queries. Clear, ongoing enablement is key. As best practice, companies should offer regular training updates whenever AI capabilities evolve . Autodesk’s partner program, for instance, expects resellers to engage in continuous learning and provides access to specialists and resources to keep them up to speed . Similarly, many forward-thinking vendors run certification programs for AI, ensuring that their partners can demonstrate proficiency. The payoff is a channel that feels confident discussing AI’s benefits and troubleshooting its quirks – which builds trust with customers.

Sales and marketing support (with a new narrative): Selling AI solutions often means shifting the conversation from features to outcomes. Vendors should equip channel partners with case studies, ROI calculators, and industry-specific examples that illustrate the AI in action (e.g. “Contractor X saved 10% on costs using our AI-driven change order management”). Co-marketing initiatives can help here. For example, viAct, a construction AI monitoring startup, offers its resellers not just commissions but also go-to-market support like co-branded marketing materials, partner-specific training, and even lead referrals to grow their business . By providing ready-made content and campaigns centered on the AI solution’s value, vendors enable VARs to effectively generate demand. The messaging should position the VAR as a forward-looking advisor bringing innovative AI to solve the client’s problems, rather than just a software peddler. This elevates the VAR’s role and cements their relevance in the AI era.

Incentives aligned with recurring value: Traditional reselling might have been a one-and-done sale plus an annual renewal. AI solutions, however, are typically cloud-based and usage-driven, so partners should be incentivized on long-term success (customer retention, usage, upsell) in addition to new sales. Many vendor partner programs are adapting by offering monthly recurring revenue shares, bonuses for hitting adoption targets, or tiered rewards as partners bring on more active AI users. The earlier-mentioned viAct program highlights generous commissions with no upfront fees or minimums – essentially lowering the financial risk for a VAR to experiment with selling a new AI product. Such low barriers encourage more partners to get on board and invest the effort to develop an AI business line.

Augmenting the VAR’s own capabilities with AI: An often overlooked aspect is that VARs themselves can leverage AI to improve their operations and value-add. Distributors can use AI tools for their internal sales analytics (e.g. predicting which customers are most likely to need an upgrade), for automating support (AI chatbots to handle L1 queries), or for managing relationships (AI-driven performance monitoring of their customer deployments). In fact, specialized solutions now exist to monitor reseller performance in real-time and send alerts if certain metrics slip . By adopting such tools, VARs can become more efficient and proactive, which ultimately makes them better channel partners and more trusted advisors to customers. Essentially, the channel should drink its own champagne – using AI not just as something to sell, but as something to operate smarter and provide superior service.

Enabling VAR success in the AI world means providing them with the skills, story, and support to sell a new kind of value. Vendors that treat their VARs as true extensions of the team – arming them with training, sharing best practices, and perhaps embedding AI specialists to assist on complex deals – will cultivate a loyal, capable channel. This is especially crucial in construction tech, where domain-savvy VARs (many of whom spent years selling ERP, BIM, or project management software) now need to elevate those solutions with AI enhancements. With proper enablement, those same VARs can transform into AI champions, guiding their clients through the next wave of tech transformation instead of being left behind by it.

Strategic positioning: from planning to winning

While many industry players are talking about AI and formulating strategies, true winners are those actively positioning themselves – through concrete product decisions and partnerships – to thrive as AI becomes ubiquitous. It’s not enough to have a slide deck about “AI strategy”; companies need to be in the right place with the right capabilities as the tides shift.

For technology vendors in construction, a key part of positioning is baking AI into the core offering and building an ecosystem around it. We’ve seen this with Procore and Autodesk rolling out integrated AI features (so that using their platform automatically gives customers AI benefits) . But beyond the product, these vendors are ensuring their ecosystems (marketplaces, integrations, and partners) are AI-ready too. Autodesk, for instance, has opened its APIs and encouraged developers to create AI-driven add-ons for its tools, while also partnering with industry firms (like the recent Autodesk-Arcadis collaboration on AI solutions) to validate real-world use cases . This creates a virtuous cycle: the platform becomes more valuable, partners have new revenue streams, and customers get innovation with minimal friction. Vendors that cultivate such AI-friendly ecosystems – including robust VAR programs – will cement their leadership. They essentially position themselves as the hub of innovation, with channel partners as the spokes delivering that innovation to every segment of the market.

For VARs and channel partners, strategic positioning in the AI era might mean specializing or aggregating in new ways. Some VARs will choose to double down on a niche (for example, becoming the go-to AI solution provider for commercial contractors in a certain region, or for a particular domain like safety or cost estimation). Their deep industry knowledge plus a curated AI toolset can make them indispensable to clients. Others may consolidate or partner up to cover all bases – much like Pine Services Group assembling a portfolio of ERP resellers and then bringing in an AI preconstruction platform (Stack) to collectively offer a full suite . By aligning with other specialists or under a larger umbrella, smaller VARs can ensure they won’t be sidelined when clients start seeking AI capabilities. In essence, channel players need to ask: Where do we have an edge and how can AI amplify it? The answer might lead them to new partnerships or service models that were not part of the traditional VAR playbook.

A shining example of savvy positioning is how Muro AI has approached the market. Rather than trying to replace existing construction software, Muro’s strategy is to become the AI layer that supercharges those tools – a vision they term “Preconstruction AI Agents as a Service” (PrecaaS™) . By focusing on domain-trained agents that plug into all the common systems used in pre-construction (estimating software, BIM models, email, etc.), Muro is well-aligned with both customer needs and channel realities. Our platform can be offered by VARs as a complementary solution that adds AI value to the customer’s current stack without painful migration. In effect, Muro isn’t positioning against incumbent products; it’s positioning itself as the AI upgrade kit for the whole industry – a role that naturally invites partnership with other vendors and channel intermediaries. This integrative and cooperative stance (backed by serious tech capabilities in AI) gives us one of the strongest positions. This gives us an edge to be prepared to fill the AI gap for construction firms while working hand-in-hand with the existing distribution network. Companies that emulate this approach – leveraging AI to augment, not alienate, the workflows and channels in their sector – are set to lead the pack.

AI is redefining how value is created and delivered in the construction technology sector. For value-added resellers and channel partners, it’s ushering in a new era that will reward adaptability, integration, and true value delivery. To become a winner in this industry shake-up, it’s not enough to simply have an AI strategy – one must be positioned for AI-driven success. That means offering solutions that slide into customers’ existing workflows with minimal friction, leveraging AI to solve real pain points, and enabling the channel with the knowledge and incentives to champion these solutions.

The construction tech players who lower switching costs through seamless integrations and who elevate their channel partners with training and support are already seeing the payoff. They’re shortening sales cycles, seeing higher adoption rates, and earning loyalty as trusted innovators. Those who cling to old models – expecting clients to undergo big switches, or assuming resellers will figure out how to sell new tech on their own – are increasingly left behind. The market is moving, and the message is clear: strategize less, execute more. Form the right alliances (be it a VAR partnering with an AI startup, or a vendor onboarding specialized resellers), invest in the ecosystem, and make your product so easy to adopt that it’s a no-brainer.

The AI wave in construction tech is just beginning to crest. There is enormous opportunity for growth, efficiency, and competitive advantage if distribution channels can harness it. By focusing on lowering barriers and empowering partners, companies can ensure that this wave lifts them to new heights rather than passes them by. The winners will be those who combine great technology with great positioning – aligning innovation with the practical realities of industry workflows and channel dynamics. With AI in the mix, the value-added resellers truly have a chance to add more value than ever before – and the entire industry stands to benefit from the resulting transformation.