This article first appeared in News in the Channel magazine issue #39.
The transformational potential of AI is well established – and SMBs are increasingly looking for a managed AI service to achieve this, which provides opportunities for MSPs, as Christian Nagele, chief strategy officer and director at inforcer, explains.
The productivity and efficiency benefits of AI have the potential to transform the operations of small and medium-sized businesses (SMBs). This has led to AI tools quickly becoming new and vital parts of the SMB technology stack. Perhaps for the first time ever, SMB demand is shaping the services managed service providers (MSPs) must deliver.
To keep up with their customers’ needs, MSPs need to support and guide SMBs through the AI adoption process, from readiness to rollout. However, most MSPs currently lack the internal expertise, underlying infrastructure and management tools needed to roll out AI services at scale. As a result, for many in the industry, the demand for AI is seen more as unwanted pressure than an opportunity.
The significance of AI in the MSP market cannot be ignored. AI won’t eliminate the MSP role; it will transform it. The most successful MSPs will be those who can evolve, moving beyond basic IT support to offer structured AI services grounded in strong security and data governance. MSPs that can provide this comprehensive support will stand out, while those who cannot risk losing existing customers and new revenue opportunities to those who can adapt faster.
What should a managed AI service look like?
Simply selling software or a license is not enough to constitute an ongoing AI service. SMBs need ongoing support, enablement and consultancy to leverage AI effectively and securely.
To begin with, MSPs should educate their SMB customers about the threat of shadow AI: the individual use of unauthorised AI tools within the workforce. If employees enter sensitive information into OpenAI sources like ChatGPT or Claude, the data is sent to servers outside the organisation’s control, increasing the risk of a breach.
This issue is already widespread. According to research from MIT, 90% of companies reported regular use of personal AI tools for work tasks. This is one of the biggest threats facing SMBs and MSPs as AI usage increases. If an MSP’s customer were to experience a breach, they would first turn to their MSP to explain why they were not properly secured.
To mitigate this risk, MSPs should recommend a business-focused tool: Microsoft Copilot. Copilot integrates with Microsoft 365, ensuring that all data remains within the organisation’s security boundaries and significantly minimising the risk of shadow AI.
Tenant security and data governance
Copilot draws upon an organisation’s internal data to form its answers. Properly organised and structured Microsoft 365 data is essential, as it makes the tool more effective and accurate. However, integrating with internal Microsoft 365 data also means that strengthening data access controls and reviewing permissions are crucial to prevent Copilot from sharing sensitive data with unauthorised users.
Tenant security and data governance are not new offerings for MSPs, but they can be re-productised and included in a completely new Copilot readiness service. Tenant security and data governance lay the foundations for any successful Copilot rollout. MSPs should start by auditing customers’ Microsoft 365 environments, enforcing properly configured security policies, and continuing to monitor configuration drift and security concerns. Then they can move on to defining purposes, rules, and role assignments for Microsoft 365 workspaces: reviewing internal permissions and strengthening data access controls and applying sensitivity labels and conditional access policies to protect confidential data.
The most successful MSPs will not be those who overhaul their services overnight to start delivering AI, but those who accommodate customer needs as they stand. Most SMBs are still just starting out in their AI journeys. They need support, enablement, and education in these early stages, which can be built on top of existing infrastructure.
Ongoing consultancy and advisory services
MSPs can offer advisory and enablement services to make Copilot support into an ongoing service that delivers MRR. By identifying power users, showcasing which departments would benefit most, and highlighting relevant business cases for Copilot, MSPs can help SMBs continuously use AI to enhance their operations, boost productivity and ultimately achieve their goals.
As AI adoption continues to soar, MSPs cannot ignore its presence and its potential. Establishing Copilot services now, grounded in education, enablement and security, will differentiate the truly forward-thinking MSPs from those that will struggle in this new landscape.
