Managed service providers risk missing a significant growth opportunity if they fail to move quickly on AI services, according to Kaseya CEO Rania Succar.
A disconnect between customer aspirations and MSP capabilities is widening, Succar warned, speaking at Kaseya Connect Europe in Prague last week. “The adoption of agentic solutions to date has been too slow. Right now, what we’re seeing is bolted-on solutions to the platform, which are not really solving the problem for MSPs,” said Succar, citing Kaseya research that found nearly half of MSP clients are asking for AI, yet only 13% generate meaningful revenue.
IT service providers face growing pressure to guide customers through the AI experimentation phases to a point where practical deployments deliver measurable value. While interest in the technology remains high, many organizations are stuck grappling with implementation, integration and governance headaches.
The gap between AI aspirations and realities was a recurring theme on the event’s first day. Despite significant investments, organizations are failing to move pilots into production, according to Maxine Holt, principal analyst at Omdia, a Channel Dive sister company.
“Seventy percent of organizations that have AI proof-of-concept projects running, [yet] fewer than 1 in 5 of those actually make it into a production environment,” Holt said during a conference presentation.
The biggest barriers include integration with existing infrastructure, a lack of in-house expertise and difficulties defining clear business outcomes, particularly among small and midsize businesses.
“SMBs don’t need more AI hype,” said Holt. “[They] need practical guidance on how to actually implement AI in ways that integrate with existing systems, deliver measurable value and of course don’t require them to become AI experts overnight.”
Omdia’s research aligns with data from the Global Technology Industry Association, which found that 97% of IT solution providers are using AI internally. However, only around a quarter have reached advanced levels of AI maturity, suggesting that many partners are still unable to deliver repeatable customer services.
Beyond IT support
Kaseya believes AI will fundamentally change the economics of managed services. As the technology automates routine operational tasks, MSPs will have more time to focus on strategic consulting, business transformation and emerging technology adoption.
“So much of the work will be anticipated by the system, executed by the system,” Succar said, “A technician won’t even need to get involved.”
The shift will clear “space for the MSP to do the very strategic work that the small business is asking them to do, around bringing AI to their workflows,” Succar added.
Some providers are already beginning the transition. Jack Peploe, founder of UK-based Veterinary IT Services, which is currently expanding into the U.S., said automation has already changed the way his company operates.
The firm eliminated its first-line team entirely, according to Peploe, who stressed that automation had not triggered layoffs. “We haven’t lost anyone, we’ve upskilled them,” he said.
Peploe believes MSPs have an opportunity to focus on understanding customer businesses rather than simply resolving technical issues.
“What they want is someone that really understands them, gets them, understands what they can do, understands their processes, their flows, the inefficiencies,” he said.
AI is not the only growth opportunity Kaseya sees emerging for MSPs.
Succar and other Kaseya execs pointed to compliance and governance services as areas of growing demand, particularly as SMBs face increasing regulatory requirements.
“There’s a massive need, and it’s very complicated, because there’s so much regulation, and it’s hard to stay on top of it,” said Succar.
Greg Jones, SVP of MSP Success at Kaseya, went further than that view, noting that “compliance is growing faster at the moment than security”.
The market opportunity already exists, but providers need to move quickly to capitalize on it.
“If they don’t act now, others will come in and take the market share,” said Succar. “There’s just no more time.”
Kaseya is pushing AI adoption via an agentic automation platform it unveiled earlier this year at its April conference in Miami. The company has sharpened its focus on MSP enablement since Succar ascended to CEO last year.
