Global spending on artificial intelligence (AI) is projected to exceed $632 billion by 2028, driven by rapid adoption across various industries, including finance and software services, per a new forecast from IDC. The annual growth rate is expected to be 29%, with software accounting for over half of the spending. Despite challenges in implementation, organizations are increasingly recognizing the value of AI in enhancing business outcomes and customer engagement.
Despite slower revenue growth for managed service providers, 90% of small businesses are optimistic about achieving their goals this year, with many planning to invest in marketing and technology. American Express’ Amex Trendex Small Business Edition report found that younger business owners (Millennials and Gen-Z) are cautious with spending and are more likely to embrace AI for various applications, believing it provides a competitive edge. AI usage is prevalent in analyzing customer data and automating tasks, highlighting opportunities for managed service providers to offer AI-related services to small businesses.
Why do we care?
While the overall revenue growth for MSPs may currently be sluggish, the shift towards AI adoption could open new revenue streams. The prevalence of AI in analyzing customer data and automating tasks suggests a growing demand for AI-driven solutions among small businesses.
The American Express report highlights that many small businesses are investing in marketing and technology. For MSPs, this suggests that marketing AI-related services should be a priority. Educating small business owners on the practical benefits of AI—such as improved efficiency, enhanced customer insights, and better decision-making—can drive adoption.
Despite the optimism around AI, the reality of implementation can be complex. Organizations often face challenges related to integration, data quality, and understanding AI’s full capabilities. MSPs can differentiate themselves by selling AI-based solutions and offering end-to-end support, from planning and deployment to ongoing management and optimization. And start with AI governance.