Standing out in the MSP market requires more than reliable service delivery. With more providers competing for the same customers, AI and automation are quickly becoming the factors that separate leading MSPs from the others.
For those providers willing to invest in AI capabilities, the technology offers a way to deliver better services, operate more efficiently and position themselves as strategic advisors to their customers. Clients know they need help with AI and they're looking to their service providers for it. MSPs that can meet this demand have a real advantage over competitors.
AI is unlocking new revenue opportunities for MSPs
AI changes what MSPs can do for customers. Instead of waiting for problems to happen and then fixing them, MSPs can use AI to spot issues before they escalate. They can identify patterns in customer environments and recommend improvements based on what the data shows them. This allows them to streamline operations and offer personalised, outcomes-based offerings closely aligned with an individual customer’s business needs.
The shift from reactive to predictive service matters because it changes the conversation with customers. Far beyond keeping the systems running, this is about actively improving how they run.
AI-driven insights and automated workflows tackle a basic question facing MSPs: how do you grow the business and establish yourself not just as a service provider, but as a trusted advisor?
MSPs that embrace AI and automation can deliver this value, scale their own operations and differentiate themselves. Tasks like patch management, security monitoring and basic troubleshooting can run automatically. That frees up skilled staff to work on complex problems and strategic consulting.
Customers need MSP expertise to navigate AI adoption safely
As the adoption of AI tools in the workplace continues, organisations are looking for support from MSPs in managing the security vulnerabilities and technical complexities these tools introduce. Sensitive data may be shared with third party AI systems without consideration for the implications. Compliance can become harder to track when AI processes information across multiple jurisdictions.
Organisations are looking for help in how to manage this properly and are willing to pay for it. Barracuda's MSP Customer Insight Report shows that 39% of organisations expect to need MSP support with AI and machine learning tools and applications in the next two years.
The research highlights the path forward for organisations of different sizes; among organisations with 50-100 employees, the proportion looking for future support with AI is 44%, with 29% already engaged. For the largest organisations, 44% are engaged with MSPs on AI and 37% expect to need support in the next two years.
Customers may need guidance on which AI tools make sense for their environment, how to implement them securely and how to train staff properly. They may also need help setting up policies around AI use and monitoring whether people follow those policies.
The research shows that 48% of organisations cite lack of skilled in-house security professionals as a reason for outsourcing security overall. MSPs need to fill that gap and develop a real understanding of AI both in terms of how to use it themselves and how to implement it securely for clients.
AI fluency is essential for defending against AI-powered attacks
AI is changing what attacks look like. Attackers use generative AI to write phishing emails that sound genuine, create deepfakes for social engineering, and automate the search for vulnerabilities across thousands of targets. Synthetic identity attacks, where AI creates realistic but fake identities, will become more common. Traditional security that relies on static rules and known signatures can't deal with threats that adapt and change constantly.
MSPs need tools that can match what attackers are using. Systems that use machine learning can spot unusual behaviour, pick up on patterns that suggest compromise and respond before real damage happens. They work around the clock, processing huge amounts of data to catch the subtle signs of an attack.
Technology by itself isn't the answer. What works best is combining machine learning and AI with human expertise – using ML/AI to amplify what skilled analysts can do rather than trying to replace them. Security analysts concentrate on the alerts that really matter while AI handles the initial sorting and pattern spotting.
Being fluent in AI means knowing how the tools work, how to set them up correctly and how to make sense of their output. It means keeping up with new AI-based attack methods, so defences stay relevant. It also means being able to explain to clients in plain terms what the threats are, what AI-based defences do, and why it matters.
The MSP market is changing. Clients need help adopting AI without creating new security holes, and protection against AI-powered attacks. MSPs that are buying the right tools, developing real expertise and working out how to deliver AI services effectively will be poised for growth in 2026.
