Not all AI is created equal. Black-box algorithms can cause confusion and erode trust in B2B. Discover why Vendavo’s embedded, explainable AI is purpose-built for manufacturers and distributors, and how it delivers measurable ROI where generic AI falls short.
AI is no longer optional. It’s the key to protecting margins and accelerating growth.
But not all AI is created equal.
Artificial intelligence (AI) is everywhere in today’s business headlines. Boards are asking their leaders, “What’s our AI strategy?” Vendors are racing to add AI labels to every product. And pricing teams are under pressure to “do something with AI,” and fast.
Here’s the reality: Most of the AI that makes headlines was built for high-volume, transactional B2C environments, like airlines adjusting fares by the minute or eCommerce platforms managing millions of microtransactions.
But those approaches don’t translate to the realities of complex B2B manufacturing and distribution. Applying generic, bolt-on AI to B2B pricing creates more distrust, confusion, and risk than it solves.
So what makes B2B different? And what’s the right way to think about AI in pricing?
The Complexity of B2B Pricing
B2B pricing isn’t just about changing numbers in a database. It involves:
- Thousands of SKUs across multiple product lines.
- Global footprints with varied regional costs and customer expectations.
- Long-term relationships, where trust and fairness matter as much as price.
- Deal-by-deal negotiations that can make or break margin targets.
A single misstep like the wrong discount, an overlooked rebate, or a misaligned launch price can have multi-million-dollar consequences.
Generic AI models aren’t built for this level of complexity. They turn out opaque recommendations without context, leaving sales reps and executives wondering “Why should I trust this?”
The Problem with Black-Box AI
One of the biggest barriers to AI adoption in pricing isn’t technology. It’s trust.
Leaders resist recommendations they can’t explain to their board. Sales teams fear outputs they can’t defend in front of customers. Finance questions results they can’t validate against reality.
Black-box AI only makes this worse. It often functions as a disconnected, bolt-on layer delivering a “best price” without context or reasoning. That’s a recipe for resistance in B2B, where transparency and relationships are everything.
While 13% of companies have deployed AI in pricing workflows, according to Vendavo and Copperberg research, just 9% report measurable ROI. The gap comes from poor fit, lack of transparency, and stalled adoption.
What B2B Needs: Explainable, Embedded AI
That’s where Vendavo takes a different approach. It’s not an add-on or abstract algorithm. It’s embedded intelligence built into our Commercial Operating System and purpose-built for complex B2B environments.
Our AI isn’t an afterthought bolted onto a dashboard. Vendavo AI is explainable, transparent, and delivered through specialized industry-trained Agents that make intelligence actionable in every workflow.
Here’s what sets it apart:
1. Embedded everywhere
Intelligence flows across the full price waterfall: pricing, quoting, and incentives. There’s no bolt-on or black box, just one continuous layer of embedded guidance.
2. Industry-trained
Built on decades of manufacturing and distribution data, every recommendation is explainable, relevant, and trusted by the teams who use it.
3. Powered by Agents
Four specialized Agents turn intelligence into measurable results:
- AI Price Manager – Detects margin leakage, adjusts policies, and measures performance.
- AI Price Optimizer – Simulates and optimizes prices, including new product launches.
- AI Deal Desk – Guides approvals, pricing, and cross-sell/upsell recommendations.
- AI Incentives Optimizer – Improves rebate planning and ROI with proactive modeling.
Together, these Agents form the backbone of how profitable growth gets done.
Real-World Results
The difference isn’t theoretical. It’s measurable.
- A global manufacturer facing volatile raw material costs used Vendavo AI to move from static price books to daily price updates. The result: a 3-point improvement in gross margin across hundreds of SKUs within a year.
- An industrial distributor embedded AI-driven guardrails into its CPQ system. Reps closed deals faster, approval bottlenecks disappeared, and the company recaptured 2.5 margin points across $1B in revenue in 12 months.
- Another customer analyzed elasticity by customer segment using Vendavo AI. The outcome? Executives approved a price increase that delivered $80M in incremental profit in one year.
These efficiencies are the difference between leading an industry and lagging behind competitors.
Why Transparency Builds Adoption
The AI that works in B2B pricing isn’t the one that spits out the smartest answer. It’s the one people actually use.
That’s why explainability matters. Vendavo AI explains the “why” behind every recommendation, building confidence from sales reps to executives. Adoption doubles, and so do the results.
Organizations using Vendavo’s explainable AI guidance have doubled adoption of pricing recommendations, for example, climbing from 40% to 80%. When teams see the logic behind the output, they act on it. And results follow.
The Future of AI in B2B Pricing
The shift is clear: Companies embracing embedded, transparent AI will outpace those relying on manual processes and instinct.
They respond dynamically to market shifts, protect margins in every transaction, and align sales and pricing like never before.
But success starts with choosing the right kind of AI. Generic AI wasn’t built for your world. Vendavo AI was.
Your Next Step
B2B pricing leaders need AI they can trust. They need intelligence that fits the complexity of their business, embeds directly into their workflows, and produces results they can defend in the boardroom.
Vendavo AI sets a new standard for profitable growth in complex B2B environments. It’s how companies worldwide are turning complexity into confidence and intelligence into profit.
The time for intelligence-powered pricing is now. Let’s chat about how Vendavo’s TNT can help your business. Schedule a demo today to see Vendavo AI in action.