AI is a double-edged sword. That’s one key finding from the latest MSP GLOBAL State of the Industry Report. Published in Fall 2025, the report builds on the Summer 2025 report and identifies growing trends and changing priorities for the Managed Service industry.
Based on a quarterly survey of hundreds of global MSPs, the report found that more than a quarter of respondents identified technological shifts, such as AI and automation, as the biggest long-term risk to their business model.
What do you believe is the biggest long-term risk to your MSP business model?
How many MSPs offer AI services?
While AI is seen as a threat, it is also identified as a core opportunity and driver of efficiency and revenue. More than half of respondents identified investment in AI and automation as a strategic priority.
When it comes to AI, MSPs are starting to walk the talk: 47% of respondents now offer AI services, up 8% from the previous quarter.
So, what’s driving the perception of AI as a long-term risk? Factors may include MSPs losing out in a technological arms race to deliver better services, increased competition and the possibility that AI could enable clients to manage more services in-house.
Price remains a pressure
Price pressure and commodization of services are also identified as long-term risks to business models. AI is undoubtedly part of this perception, and is likely to become an increasingly important factor.
Other risks include vendor consolidation and reduced margins, market saturation, talent shortage and evolving customer expectations.
Read the full report
The MSP industry is entering a period of even greater disruption, and the quarterly MSP GLOBAL State of the Industry Report is a great way to understand the shifting landscape and make better strategic decisions.
