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What AI actually does in distribution software

20 September 2026 · Yashvardhan Maiya

Our domain is stemzo.ai, so it is fair to ask what the AI is. The honest answer is that in the product today there is not much — and that most of what this industry labels AI is arithmetic with a better name. Here is the breakdown, including what we do, what we do not, and what we are building.

01The short answer

Very little software sold to Indian distributors as “AI” contains a model that predicts or decides anything. Most of it is threshold rules, moving averages and lookup tables — useful, often worth paying for, but not learning from your data.

In Stemzo today, nothing is predicted or decided by a model. Route ordering is manual. Payroll deductions are explicit, rule-based arithmetic. We will call a feature AI on the day we can show it running on your data in a demo.

02What vendors usually mean when they say AI

What it is calledWhat it usually isIs it actually AI?
Demand forecastingA moving average of the last three to six months, sometimes with a seasonality multiplierRarely. Genuine forecasting needs a fitted model and a measurable error rate — ask for both
Route optimisationA fixed beat plan entered once by a supervisor, replayed weeklyNo. Real optimisation re-solves against today’s orders and constraints
Anomaly detectionA threshold — flag anything more than X% off last monthNo. That is a rule, and a useful one, but it does not learn
Smart reorder / auto-indentReorder level minus current stockNo. That is a subtraction
OCR on invoices and PO documentsA genuinely trained model, usually a third-party APIYes — and the most commonly under-claimed real AI in this category
Chat / ask-your-dataA language model over your databaseYes, when it exists. Ask to type your own question, not to watch a scripted demo
Image-based shelf auditA trained vision modelYes, and expensive to build. Verify it on a photo you take in the room

The pattern: the features most often labelled AI are the ones least likely to contain any. The two that genuinely do — document OCR and natural-language querying — are the ones vendors describe in the flattest language.

03What Stemzo does today

Everything below is rule-based, deterministic and inspectable. That is a feature, not an apology — when a payroll deduction is wrong you can trace exactly which rule produced it, which is not true of a model.

No model is in that list. Nothing above learns.

04What we are building

In order, and only shipping when it survives a live demo on a customer’s own data.

1. Ask your data, in the language you actually use. “Kal Vishal ka kitna gaya?” → the answer. Typed or spoken, in Hindi, Bengali or English. The data is already in the system; this is a language layer over queries that already run. It is first because it is the one that changes a supervisor’s day, and because it cannot be faked in a demo — you type the question.

2. Drafted collection follow-ups. Outstanding ledger plus ageing, turned into a message per party, in the right language and the right register for that relationship. A human reads it and presses send. The value is in the drafting, not the sending.

3. Anomaly explanation in words. Not “anomaly detected” — that is a threshold with a badge. Something closer to: “This party ordered 40% less this month than the previous three. Their last three deliveries were all short-shipped.” The explanation is the product; the flag is the easy half.

Each is genuinely generative. Each sits on data the system already holds. None is on this page as a claim until it is on a screen.

05Nine questions to ask any vendor who says AI

  1. “Can I type my own question, right now, instead of watching the demo script?” The single fastest test. Real natural-language querying survives an unscripted question; a scripted demo does not.
  2. “What is the model’s error rate, and measured against what?” A forecasting feature with no stated accuracy has not been evaluated. If nobody can answer, there is no model.
  3. “Which of these features runs a model, and which runs a rule?” Ask for the list split into two columns. A vendor who cannot split it does not know either.
  4. “Does it get better as we use it, and what specifically changes?” “Self-learning” should have a mechanism behind it. Ask what quantity updates, and how often.
  5. “Whose model is it?” A wrapper around a third-party API is completely legitimate — most good products are. But it changes who your data reaches, and what happens if that vendor’s pricing changes.
  6. “Where does our data go when the AI feature runs?” If a language model is involved, something leaves your server. Ask what, to whom, and whether it is retained or used for training.
  7. “What happens when it is wrong?” Every model is wrong sometimes. Ask whether a human approves before anything is acted on, and whether you can see why it decided what it decided.
  8. “Can I see it working on my data during the pilot, not on your demo account?” Demo data is clean. Yours is not. This is where most AI claims quietly fail.
  9. “Which logos on that integration wall are live today?” Not an AI question, but the same instinct, and the most revealing question on the list. We ask it too. Our own wall carries three integrations — Tally, Google Sheets and Google Drive — because those are the three that exist.

You are welcome to ask us all nine. Question 1 we will fail today, and we would rather you found that out here than in week three.

06Why we are saying all this

We run a distribution business in Siliguri. We have sat on the buyer’s side of that demo — the one where the software claims things. You do not find out in the meeting. You find out in week three, when you need the thing it promised.

This page used to say other things. Self-learning. Anomaly detection. Machine-optimised. It also carried thirteen integration logos, including SAP, Salesforce and AWS, that we do not integrate with, and two products in the list that were never built. All of it came off.

What is left is what exists.

Related reading

Fifteen minutes, on your operation. Not a demo of our demo account — bring a question you actually need answered, including any of the nine above.

Book fifteen minutes · customer@stemzo.ai · +91 77971 00055