The National Association of Wholesaler-Distributors has released an AI Governance Architecture designed to help wholesale distributors implement artificial intelligence responsibly while protecting employees, customers and supply chain operations.

Developed in coordination with the AI Applied Consortium, the framework provides distributors with practical guidance covering AI governance, risk management, transparency, workforce development and responsible implementation. NAW said the initiative is intended to help companies adopt AI confidently while using the technology to strengthen — rather than replace — the workforce.

“America’s supply chain has always been defined by innovation, and AI is the next chapter in that story,” NAW President and CEO Eric Hoplin said in a July 21 news release. “By bringing together industry leaders to develop this governance architecture, we’re helping companies embrace AI with confidence while ensuring people remain at the center.”

The architecture is structured as a practical roadmap for organizations navigating an AI environment in which adoption and regulation are advancing quickly. It encourages companies to establish clear ownership of AI systems, classify applications according to their level of risk and document how consequential AI-supported decisions are reviewed and validated.

The framework supports a risk-tiered approach in which lower-risk applications carry lighter governance requirements, while applications affecting areas such as employment, safety, credit or customer outcomes receive greater documentation, testing and human oversight. It also emphasizes evaluating AI based on outcomes such as accuracy, auditability, security and nondiscrimination rather than prescribing specific technologies that could quickly become outdated.

NAW and the consortium recommend aligning governance programs with the National Institute of Standards and Technology’s AI Risk Management Framework. The architecture is also intended to accommodate the operating realities of small and midsized distributors, many of which have limited IT, legal and compliance resources.

Another focus is coordinating AI governance with the regulations distributors already follow across pharmaceutical, food, chemical, defense and other specialized supply chains. The framework cautions against creating duplicative systems that conflict with existing requirements covering traceability, cybersecurity, product safety and recordkeeping.

Workforce development is central to the initiative. NAW said responsible implementation should use AI to remove repetitive work, improve decision-making and allow employees to devote more time to technical guidance, customer relationships and other higher-value responsibilities. The architecture encourages AI literacy, employee training, knowledge capture and clearly defined boundaries for when human judgment or approval is required.

Read the executive brief summarizing the AI Governance Architecture.

The brief was authored by AI Applied Consortium Chairperson Konrad Konarski and Nick Pericle, an NAW Institute fellow, Tenexity founder and contributing author. NAW has made the complete governance framework available to its members, and members of the media upon request.