AI is the biggest opportunity in MSP history

COMMENTARY: AI is a big opening for MSPs. But the only caveat is that it is used in the right way. Automating the help desk is the first big thing for MSPs, but that alone will not set an MSP apart. Customers need help understanding where AI fits in their business, how to use it safely, and how to make it part of everyday workflows. MSPs need to be advisors and consultants - become strategic providers who can give clear advice, manage the technology, and solve real business problems.

In 1882, Thomas Edison opened the first electric plant in New York, yet by 1900, only 3% of American homes were electrified. The technology was revolutionary, but a massive delivery gap remained between the power plant and the end user. It wasn’t until the electric contractor industry formed in 1901 that an army of implementers began connecting the world to this new power source.

We’re living through a similar historical loop with artificial intelligence. According to the 2025 Anthropic Labor AI Report, AI can theoretically perform over 90% of computer and math tasks today, yet most businesses are barely scratching the surface of its actual utility. This gap represents the single largest opportunity for MSPs in the history of the industry.

As an MSP owner, you’re the modern-day electric contractor. Your clients are not just buying a help desk; they want a trusted advisor who can explain how this technology makes their business better and integrate it into their workflow.

The great market split

The MSP market is currently bifurcating. On one side, you have commodity operators. These businesses compete primarily on price and focus solely on automating the help desk as their value proposition. Their trajectory looks much like that of hardware vendors from decades past, a race toward declining relevance.

On the other side are the premium providers, or managed intelligence providers. These firms focus on:

Which side of the line you land on depends entirely on how you address the current mismatch in your business model.

Fixing the value and cost mismatch

Through years of research across more than 130 portfolio companies, we’ve familiarized ourselves with how MSPs allocate resources. Our data shows that 70% of your customers value the relationship and personal touch above all else. They want a trusted contact who understands their business and offers strategic guidance.

However, the average MSP spends only 10% of its costs on those high-value relationships and advisory services. Meanwhile, 40% of the budget is consumed by help desk responsiveness. While a fast help desk is important, customers view it as table stakes; an expected baseline rather than a primary value driver.

The AI transition allows you to flip this script. By leveraging AI to automate routine ticket triage, you can recover significant capacity. Reallocating just 20% of the resources currently trapped in your help desk toward AI integration and strategic advisory doesn't just save money; it reinvests in the parts of your business that make you premium.

Why structure matters for an exit

Many traditional MSP roll-ups rely on a centralized model that can stifle the innovation you’ve built. Centralized companies often put all their investment behind a single corporate AI strategy. If that single project fails to fit your specific end market, the whole organization suffers.

A decentralized model, by contrast, keeps the acquired company empowered and independent. This creates a power-law game of innovation. Rather than one corporate leader guessing the future, you have over 100 CEOs all experimenting with AI. When a bright spot, like a new AI revenue stream or a breakthrough automation, is found in one company, it can be shared across the entire portfolio without being forced down from the top.

How to protect your legacy

Joining a decentralized platform lets you scale without sacrificing the autonomy that made your business successful. This is the most exciting time in the industry's history, but it’s also a period of significant risk.

It's important to identify the bright spots in AI readiness, governance, and workflow automation. Whether you’re looking to scale your team or eventually transition out of the business, the goal is to enable better value creation rather than simple cost-cutting.

The electricity is here. The question is whether you will be the one to deliver it to your customers.

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