The evolving role of MSPs in the AI era: Are MSPs realising the AI hype?

Nick Botha, Chief Channel Partner Officer, 4sight.

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Artificial intelligence (AI) has become a transformative force across industries, offering significant opportunities for managed service providers (MSPs). Many MSPs, particularly within the Microsoft ecosystem, have embraced AI to enhance their service offerings. 

From automating routine tasks to providing advanced predictive analytics, AI has enabled MSPs to position themselves as critical players in their customers' digital AI transformation journeys. However, merely adopting AI-driven tools and services isn’t enough. The real challenge is ensuring AI solutions are not only adopted but integrated into core service offerings to deliver sustained, long-term value.

While the initial excitement around large language models (LLMs) and AI has led to rapid but often superficial adoption, MSPs must resist the temptation to view AI as merely a tool, like ChatGPT for drafting documents or e-mails. 

AI is far from a passing trend; it's evolving into a core component of modern business operations. The MSPs that will thrive are those who go beyond the buzzwords, embedding AI deeply into their service offerings and customer engagements to drive meaningful change.

As AI matures and becomes more embedded in business processes, the role of MSPs will adjust. The focus will shift from merely being early adopters to becoming strategic partners who can guide customers through the complexities of AI deployment and integration. This shift requires MSPs to think outside the generic application of AI and instead, tailor their offerings to the specific needs of different industries.

One critical area where MSPs need to excel is data management. AI thrives on high-quality, well-governed data. MSPs must develop robust data strategies that ensure the accuracy, relevance and security of the data used in AI solutions. This means focusing not only on data collection but implementing comprehensive data governance frameworks that support AI-driven outcomes.

In addition to data management, MSPs must concentrate on continuous innovation. The AI landscape is rapidly expanding, with new technologies and applications regularly emerging. MSPs need to stay ahead of these developments, continuously refining and growing their AI offerings to meet the changing needs of their customers.

One of the most significant opportunities for MSPs lies in specialising in industry-specific AI solutions. History has shown that partners who dive deep into vertical industries and become experts in those fields are more likely to succeed. In the AI era, this means not just being an AI partner, but being an AI partner with a deep understanding of how AI can solve the unique challenges of particular industries. Generic AI solutions may offer some benefits, but the real value comes from tailoring AI to the nuances of these individual sectors.

For example, in the healthcare industry, we’ve seen that AI can be used to enhance patient care through predictive analytics and personalised treatment plans. Partners who can take that knowledge and fuse it into the deployment of Microsoft 365, or into the deployment of Dynamics 365 are going to be the winners in this new era. By focusing on these industry-specific applications of AI, MSPs can offer more valuable and differentiated services to their customers.

The MSPs that will prosper in this new AI-driven world are those that can move beyond the initial hype and deliver sustained value through AI. By focusing on robust data management, strategic AI integration and industry-specific expertise, MSPs can position themselves as essential partners in their customers' digital AI transformation journeys. 

AI, in many ways, is a leveller—whether you’re an MSP in a small town in Africa, or in a city like London or New York, the opportunities are the same. African-based MSPs need to recognise this massive opportunity, leveraging AI to innovate and compete on a global scale.

As AI continues to progress, MSPs must adapt and innovate, ensuring they remain relevant and valuable to their customers. The most successful MSPs will be those who embrace the complexities of AI, continuously develop their skills, and remain committed to driving tangible business outcomes. This approach will not only help MSPs navigate the challenges of the AI era, but also seize the prospects it presents, ensuring long-term success in a rapidly-changing technological landscape.