What if we’re underestimating artificial intelligence?

For managed service providers (MSPs), the risk isn’t just missing a tech fad—it’s overlooking one of the greatest opportunities of our time. AI is advancing faster than many realize, and businesses are racing to adopt it. The global AI market is projected to grow from $40 billion in 2024 to over $150 billion by 2027 (a 55% annual growth rate), indicating that we’re only at the beginning of an AI surge.

Far from being hype, AI’s impact is tangible and accelerating. This blog explores why MSPs should treat AI as a now opportunity, not a future one, and how embracing it can drive return on investment (ROI), stronger client relationships, and long-term growth.  

In short, MSPs who act now will lead the pack, while those who hesitate may be left behind. 

AI Adoption Is Exploding (And It’s Not Hype) 

It’s easy to underestimate how quickly AI has moved from novelty to necessity. In the year since generative AI tools like ChatGPT burst onto the scene, interest in AI has skyrocketed. Most businesses are no longer asking if they’ll use AI, but how. A recent survey found 71% of companies are already using AI in some form, and 92% of AI projects are getting off the ground within 12 months . In fact, among small and mid-sized businesses (SMBs), an incredible 88% have successfully implemented at least one AI system . Clearly, AI adoption is happening now across organizations of all sizes. 

Crucially, this wave of adoption isn’t confined to IT departments or tech giants. SMBs are embracing AI rapidly—86% of SMB leaders are comfortable with employees outside IT using AI tools, and 35% of SMBs already describe their AI usage as “very mature,” outpacing larger enterprises in some cases . The momentum is building:

75% of SMBs plan to increase AI investments in the next 12 months.

We are at an inflection point where AI is moving into the mainstream of business operations. The question for MSPs is whether they will ride this wave or risk being swept aside by it. 

Real ROI: AI is Delivering Value Today 

For AI to be a true opportunity, it must drive real business value—and it does. AI isn’t just hype; it’s already boosting productivity, cutting costs, and growing revenue for those who deploy it. Business leaders overwhelmingly see AI as a sound investment, not a science experiment. In one study, 87% of surveyed businesses said investing in AI promises long-term benefits rather than being a fleeting trend . More than 80% even acknowledged that ignoring AI could jeopardize their competitive position . In other words, AI is viewed as critical to staying relevant. 

The ROI numbers speak for themselves. According to IDC research, companies are seeing an average return of $3.5 for every $1 invested in AI, and are realizing a positive ROI in about 14 months on average . These aren’t distant projections—this is happening now. In fact, some early adopters have achieved triple-digit ROI: businesses experimenting with autonomous AI “agents” report 234% ROI, 50% faster deal cycles, and 4× larger deal sizes by leveraging AI-driven automation . And it’s not just isolated cases: 91% of SMBs using AI say it’s boosting their revenue growth . AI is helping companies work smarter, serve customers better, and make data-driven decisions that translate into real dollars. 

Consider a few tangible impacts reported by SMBs: 74% say their AI investments are enhancing their ability to meet business goals, improving efficiency, data analysis, and customer engagement, and 70% have used AI to cut costs in their operations . Over half of SMBs experimenting with AI have already increased their speed and scale without adding headcount, effectively doing more with less . From automating routine tasks to uncovering insights in data, AI is delivering measurable improvements. The bottom line is clear: AI can drive ROI and competitive advantage, often far sooner than skeptics expect. 

The MSP’s Moment: Unlocking AI for Clients 

So where do MSPs fit into this picture? Right at the center. As businesses scramble to adopt AI, most can’t do it alone – and this is where MSPs have a critical role and opportunity. According to research, only 16% of organizations are implementing AI systems without third-party help. The majority (58%) are working with solution providers or MSPs to deploy AI in their businesses. In other words, your clients are looking for guides and partners to help them navigate AI. They have the will to embrace AI, but often not the way. 

Several factors are driving this reliance on MSPs. One major hurdle is the skills gap: 52% of companies say a lack of skilled workers is the biggest barrier to AI adoption. Business owners know AI could be transformative, but they often lack in-house AI expertise or resources to implement and manage it. In a global SMB survey, a whopping 95% of SMB decision-makers said they need more training to use AI effectively, despite many considering themselves tech-savvy. There’s a clear knowledge and confidence gap – and MSPs are in a prime position to fill it. 

Beyond skills, businesses need the right infrastructure, data management, and security practices to successfully leverage AI . Many SMBs don’t yet have these pieces in place – nearly half say they lack the systems to scale AI as quickly as they’d like. MSPs can provide the platforms, integrations, and security frameworks to make AI work reliably. Whether it’s setting up AI-ready cloud infrastructure, ensuring data is clean and protected, or integrating AI tools into workflows, MSPs can deliver the missing pieces that turn AI from idea to reality for clients. 

Importantly, MSPs who step up as AI enablers stand to deepen their client relationships and expand their business. By helping clients achieve AI-driven improvements, you shift from being just an IT supplier to a strategic advisor. Instead of reacting to support tickets, AI-fluent MSPs can proactively identify opportunities for automation, efficiency and innovation in a client’s business. Imagine predicting a client’s needs or solving problems before they even notice them – AI makes this possible, and it elevates the MSP from a service provider to an indispensable partner in the client’s success.

This kind of value-add builds trust and long-term loyalty. In fact, 61% of B2B buyers (many of them SMBs) say they want to be taught and guided on new technologies, not just sold a product. By educating and leading clients into the age of AI, MSPs can fulfill that advisory role and cement their status as trusted experts. 

There’s also a direct financial incentive: offering AI-related services can create new revenue streams for MSPs. Early-adopting MSPs are packaging AI offerings – from AI-driven process automation, to chatbot and virtual agent solutions, to data analytics services – and winning bigger deals.

As one industry executive put it, “SMBs adopting AI are seeing significant returns and doubling down… Those who wait too long to invest risk falling behind as early adopters build their advantage.”

This applies just as much to MSPs as to their clients. The first movers in the MSP space who build AI practices are likely to capture outsized market share, attract forward-looking customers, and differentiate themselves from competitors. We may soon see AI-savvy providers becoming the new leaders; indeed, analysts predict that within the next two years the industry could see its first billion-dollar-revenue MSP – fueled in part by AI-powered growth strategies. 

Don’t Underestimate the Risk of Standing Still 

If embracing AI is a golden opportunity, ignoring it is a glaring risk. Underestimating AI’s impact could leave both MSPs and their clients at a disadvantage. Business leaders increasingly recognize this: nearly half of SMBs worry that failing to keep pace with AI will put their company at a competitive disadvantage . Clients may not articulate it in these terms, but if their MSP isn’t helping them innovate, they will seek someone who will. We’ve seen this story before—think about cloud computing a decade ago.

MSPs who clung to on-premise solutions while others embraced the cloud eventually lost clients to more agile competitors. AI is a similar inflection point. Those who adapt will thrive; those who don’t may see clients drift away in search of more future-focused partners. 

Ready to Embrace AI? Here's How MSPs Can Start Today 

The AI opportunity is here, and MSPs don't need advanced degrees or massive budgets to get started. Here's your practical roadmap: 

1. Build Internal AI Confidence 

Start with your own team. Invest in basic AI training and identify your internal AI champions. Since lack of expertise is the top barrier holding businesses back, closing this knowledge gap is your foundation for credible client support. 

2. Target Quick Wins 

Focus on common pain points with immediate impact: automating data entry, generating reports, monitoring security logs, or deploying support chatbots. Skip the sci-fi scenarios—practical improvements that save time and money are what clients actually need. 

3. Use the Right Platform 

Don't build from scratch. Platforms like Hatz AI act as your "easy button" for AI deployment, offering pre-built agents, workflows, and integrations designed specifically for SMBs and MSPs. This lets you deploy AI capabilities rapidly without needing an in-house development team. 

4. Pilot First, Scale Smart 

Launch AI projects as pilots—maybe a helpdesk chatbot for one client or analytics tools for another. Measure concrete results (time saved, faster response times, cost reduction) and use those wins to refine your approach and expand to more clients. 

5. Speak Business, Not Tech 

Frame AI solutions around business outcomes: increased productivity, reduced costs, improved customer satisfaction. With AI delivering an average 3.5X ROI, focus on clear objectives and measurable KPIs that prove value to decision-makers. 

The key is starting now with manageable steps that build momentum and demonstrate real business impact. 

Throughout these steps, it’s essential to keep ethical and responsible practices in view—ensure data privacy, avoid bias in AI outputs, and set realistic expectations. Starting now doesn’t mean rushing in recklessly; it means beginning the learning and implementation process in a thoughtful way. By taking these actionable steps, MSPs can gradually build a robust AI service portfolio that aligns with client needs and showcases true thought leadership. 

Conclusion:  

Activate AI – Your Future Self Will Thank You 

The opportunity in front of MSPs is nothing short of transformational. AI is poised to add trillions to the global economy over the next decade , and MSPs have a front-row seat to be the enablers of that transformation for millions of businesses. Underestimating AI now would be like underestimating the internet or cloud computing in their early days—a mistake no modern provider wants to make. The technology, the market demand, and the business case are all aligning: AI is ready for prime time, and MSPs are in a unique position to deliver its benefits to those who need it most. 

For MSP owners and decision-makers, the call to action is clear and urgent: start now. Begin rolling out AI solutions to your customers, even in a modest way, to get them (and yourself) off the starting blocks. Activate that first project, be the guide your clients are waiting for, and help them tap into the power of AI. Each small step will build your confidence and credibility in this arena. As your clients see results—productivity gains, cost savings, happier end-users—they will lean on you for more, and your AI offerings will naturally expand. 

In the end, adopting AI isn’t just about adding a new service; it’s about future-proofing your MSP business. It’s about positioning yourself as a forward-thinking partner who delivers innovation and value. Those MSPs that seize the AI opportunity now will cultivate deeper client loyalty, unlock new revenue streams, and stand out in an increasingly competitive field. The ones that delay may find the window of opportunity narrows as clients turn elsewhere. 

The choice is straightforward. AI is here, and it’s huge – bigger than many have imagined. Don’t underestimate it. Embrace it. Make it part of your strategy, your story, and your solutions. Your customers need the boost, and your business will reap the rewards. The road to AI success isn’t reserved for tech giants; it’s wide open for those willing to take the first step. As an MSP, you hold the key – so hit that “easy button,” activate AI for your clients, and lead them (and yourself) into the future, starting today.