Channel leaders see AI agents as a way to enhance partnership management, but executives may mistakenly view them as a cost-cutting replacement for people.
A seasoned channel leader recently shared that she postponed her retirement by at least five years to be part of the artificial intelligence revolution. She wanted to witness, engage with, and contribute to AI’s integration across the channel. One of her key objectives was to enhance her organization’s channel analytics and management with AI-driven capabilities.
Through artificial intelligence, this channel chief believed she could improve the efficiency and productivity of her channel ecosystem while creating new opportunities for partners to increase sales and revenue.
Then came a conversation with a well-known channel influencer. As we discussed various industry trends, he stated unequivocally, “I think AI agents are going to replace a lot of channel account managers.”
I was incredulous. I argued that if vendors replace channel managers with agentic AI — autonomous systems that operate independently, make decisions, and take actions to achieve specific goals — they would be drawing the wrong conclusion and ultimately harming, rather than helping, their channel ecosystems.
He vehemently disagreed, insisting that cost savings would drive vendors to make the switch.
And you know what? He’s right.
Since that conversation, I’ve spoken with numerous industry and channel leaders about AI advancements and agentic AI. Everyone agrees that these technologies will revolutionize business processes, making it easier to process information, expedite routine workflows, and free up time for overworked and overtasked managers.
That sounds beneficial, especially considering that "overworked and overtasked" perfectly describes channel account managers. These professionals, who work directly with partners, have the greatest influence over partner alignment and productivity.
Channel account managers help partners identify opportunities, sell them on ideas, and navigate go-to-market strategies. Over the past decade, partner satisfaction and productivity research done by Channelnomics has consistently found that no vendor resource influences partner engagement more than the channel account manager.
However, time for engagement is the one thing channel account managers lack. On average, CAMs spend only 30% of their time working with partners. The rest is consumed by administrative tasks, internal meetings, management requests, and endless PowerPoint presentations. While some may envision CAMs as simply wining and dining partners, the reality is that they spend more time buried in busywork than anything else.
One channel chief recently shared the impact of shifting channel account managers toward more meaningful engagement. Instead of having them focus on producing routine reports, he and his team repositioned CAMs as business development managers. They provided new tools and training and structured their time to allow for more direct partner interaction.
The results were remarkable: The channel pipeline grew by 30%, incremental new bookings rose significantly, and the managed-service business — previously an afterthought — soared by 70%. That was all from giving CAMs more time to be human.
Unfortunately, agentic AI is cheap. Vendors embedding AI into their applications are racing to develop agentic solutions. Some view these agents as the next big marketplace opportunity — prebuilt AI-driven workflows sold through partners that would help businesses operationalize them.
Management will inevitably see the cost benefits and conclude they don’t need as many people. The channel will likely be hit hard. Channel budgets are already under pressure as vendors attempt to offset rising costs amid sluggish sales and declining profitability. Replacing people with automation will save money, but it won’t improve partner experiences.
Despite the best efforts of AI developers, self-service is not a substitute for human interaction in partner and customer engagement. As David Sax notes in "The Future is Analog," the Amazon shopping experience is cold and impersonal compared to the high-touch service of retail stores.
Some processes should be automated. Gartner predicts that by 2028, 15 billion machines will buy and sell products autonomously, handling inventory management, pricing negotiations, logistics, and even software deployment. In industries like manufacturing, where inputs must flow predictably, such automation makes sense.
But sales remains a relationship-driven business. Channelnomics has long maintained that “if a human doesn’t belong in a sale, get the human out of the sale.” That logic applies to leveraging marketplaces, but not every product or service can be sold through automation. Many require human interaction to diagnose needs, select the right solutions, facilitate purchases, and implement them.
Several AI developers and product managers have echoed this sentiment. They don’t see AI as a replacement for humans but as a tool to augment productivity and efficiency. As an industry, we must keep this perspective in mind before rushing to deploy AI-driven CAMs and adding yet another layer of insulation between vendors and partners.
The real opportunity isn’t in replacing people but in empowering them. AI should be used to remove obstacles, streamline operations, and enhance human capabilities — not to eliminate the very relationships that drive channel success. Vendors that recognize this will not only improve efficiency but also build stronger, more engaged partnerships that lead to sustained growth.
Larry Walsh is the CEO, chief analyst, and founder of Channelnomics. He’s an expert on the development and execution of channel programs, disruptive sales models, and growth strategies for companies worldwide.
