AI Diligence // Industrials & distribution # The AI runs the floor. Nobody wrote down what happens when it stops. Forecasting, pricing, routing, predictive maintenance, vision inspection. In industrials the AI is wired into physical operations — so the failure mode isn't a bad dashboard, it's downtime, scrap, stranded inventory, and a safety file. Book a scoping call → What typically breaks ↓ The confirmatory assessment — the actual product, not a mockup. 01 // The four surfaces ## Four surfaces, read for this sector. The method doesn't change. What changes is where the risk concentrates — and in industrials & distribution, it concentrates hard. Operational — why it matters This is the surface that matters here. A model in the critical path with no fallback is downtime , and downtime is cash. Product — why it matters “Smart” products carry a promise. If the model underperforms, the warranty is real and so is the recall. Market — why it matters If a competitor's AI takes 3 points out of their cost curve, your pricing power is gone before the hold ends. Financial — why it matters Forecasting AI sets inventory. A bad model is working capital — the most expensive kind of quiet. 02 // The failure modes ## What typically breaks in industrials & distribution. These are the findings we look for first — ranked by how often they turn up, and what they hit when they do. Frequency reflects what we look for and how often it surfaces in this sector — not a published benchmark. Sector baselines are built from completed engagements and released only when the sample supports them. 03 // One finding, priced ## A finding is only real when it has a number. The finding Value at risk What it becomes Demand forecasting model driving automatic replenishment, with no override and no back-test since 2023 $3.9M Working-capital adjustment · 100-day remediation Why it matters Inventory decisions made by a model the business can't challenge Illustrative finding · representative of this sector, not a specific client engagement. 04 // How you buy it ## Screen fast. Then go deep. Pre-LOI ### Flash Screen A go/no-go read before the diligence budget commits. ≈ 10 SME hours included - Composite score and red-flag triggers - Sector failure modes checked first - Screen memo: proceed, price, or pass Confirmatory ### Full Assessment The IC-defensible read, sized to your window. ≈ 70 SME hours included - All eight weighted domains, evidence-linked - Management and technical interviews - Findings → terms working session - IC readout and 100-day plan input Sector Healthcare services → Sector Software / SaaS → Sector Insurance & financial services → Sector Industrials & distribution → Sector Business & professional services → Sector AI infrastructure & specialty industrials → Sector Payments & fintech → ## Don't sign for AI you haven't seen. Bring us the target. We'll score the AI behind it — with the industrials & distribution failure modes checked first — and hand your deal team the price, the terms, or the walk. Book a scoping call →