Managed Service Providers (MSPs) are encouraged to shift their focus from traditional infrastructure management to becoming Managed Intelligence Providers (MIPs), emphasizing the integration of artificial intelligence (AI) into their service offerings. Chance Weaver, VP of AI Adoption at PAX 8, highlights the necessity for MSPs to engage in deeper conversations with clients about their business processes rather than merely discussing technology tools. This approach aims to identify specific business challenges that can be addressed through tailored technological solutions, including AI, automation, and business intelligence.

Weaver notes that while many MSPs have historically excelled in maintaining infrastructure, they often lack a comprehensive understanding of their clients' workflows and business needs. The transition to MIPs involves not only understanding business processes but also ensuring data readiness, which is critical for effective AI implementation. Instead of undertaking extensive data cleanup projects upfront, MSPs should focus on the data relevant to specific business processes, thereby demonstrating immediate ROI and building trust with clients.

The episode also discusses the importance of outcome-driven services and the potential for MSPs to monetize AI solutions effectively. Weaver shares insights from his interviews with over 650 partners in the PAX 8 ecosystem, revealing that only a small percentage are currently generating revenue from AI-related services. Successful partners are leveraging their existing relationships and expertise to create value for clients by aligning pricing models with measurable outcomes, thus facilitating a smoother transition to AI adoption.

For MSPs and IT service leaders, the key takeaway is the urgency to start conversations about AI with clients, even if they are not yet fully equipped to implement these solutions. By positioning themselves as knowledgeable partners in the AI transformation journey, MSPs can capitalize on emerging opportunities and enhance their service offerings. The discussion emphasizes that while some providers may choose to adopt a fast-follower strategy, those who proactively engage with clients about AI will likely gain a competitive advantage in the evolving market landscape.

Support the vendors who support the show:

👉 https://businessof.tech/sponsors/

Get exclusive access to investigative reports, vendor analysis, leadership briefings, and more.

👉 https://businessof.tech/plus

Want the show on your favorite podcast app or prefer the written versions of each story?

📲 https://www.businessof.tech/subscribe

Looking for the links from today’s stories?

Every episode script — with full source links — is posted at:

🌐 https://www.businessof.tech

Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:

💬 https://www.podmatch.com/hostdetailpreview/businessoftech

LinkedIn: https://www.linkedin.com/company/28908079

YouTube: https://youtube.com/mspradio

Bluesky: https://bsky.app/profile/businessof.tech

Instagram: https://www.instagram.com/mspradio

TikTok: https://www.tiktok.com/@businessoftech

Facebook: https://www.facebook.com/mspradionews

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The conversation centers on the evolving role of automation in Managed Service Providers (MSPs), particularly the implementation of human-in-the-loop AI systems. Mathieu Tougas, CEO of Mizo Technologies, emphasizes that while automation can significantly enhance efficiency—reporting a 26% increase in technician capacity and a 30% reduction in escalations—maintaining human oversight is crucial for ensuring service quality. This approach allows technicians to delegate low-value tasks to AI agents while focusing on higher-value customer interactions, thereby preserving the essential human element in service delivery.

Tougas outlines the methodology behind these efficiency gains, which involves analyzing ticket resolution times before and after deploying Mizo's solutions. The data indicates that technicians can handle more tickets in less time, which can lead to reduced staffing needs without compromising service quality. He also addresses common misconceptions among MSPs regarding AI, particularly the fear of losing control over service quality when delegating tasks to automated systems. Instead, he argues that AI should be viewed as a tool to enhance technician capabilities rather than replace them.

The discussion also touches on the importance of integrating AI tools into existing workflows without causing disruption. Mizo Technologies employs a two-week fine-tuning period to adapt its systems to the specific processes of each MSP, ensuring a smoother transition and minimizing the need for extensive retraining. This gradual approach allows organizations to build trust in the AI systems while optimizing their service desk operations.

For MSPs and IT service leaders, the key takeaway is the necessity of balancing automation with human oversight to maintain service quality. As the industry moves towards greater automation, understanding the right contexts for AI deployment and ensuring robust processes are in place will be essential for maximizing efficiency and customer satisfaction. Embracing AI thoughtfully can lead to significant operational improvements while still addressing the critical need for human interaction in service delivery.

Support the vendors who support the show:

👉 https://businessof.tech/sponsors/

Get exclusive access to investigative reports, vendor analysis, leadership briefings, and more.

👉 https://businessof.tech/plus

Want the show on your favorite podcast app or prefer the written versions of each story?

📲 https://www.businessof.tech/subscribe

Looking for the links from today’s stories?

Every episode script — with full source links — is posted at:

🌐 https://www.businessof.tech

Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:

💬 https://www.podmatch.com/hostdetailpreview/businessoftech

LinkedIn: https://www.linkedin.com/company/28908079

YouTube: https://youtube.com/mspradio

Bluesky: https://bsky.app/profile/businessof.tech

Instagram: https://www.instagram.com/mspradio

TikTok: https://www.tiktok.com/@businessoftech

Facebook: https://www.facebook.com/mspradionews

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Robbie Bach, former president of Microsoft's Entertainment and Devices Division, discusses his transition from technology executive to author of political techno-thrillers, focusing on his latest book, The Blockchain Syndicate. The narrative explores themes of digital identity, misinformation, and the vulnerabilities of modern institutions, emphasizing that technology itself is neutral; it can be used for both beneficial and harmful purposes. Bach highlights the character of Tamika Smith, a military veteran, as a lens through which to examine leadership in a complex landscape of technology and public trust.

Bach elaborates on the psychological and technical aspects of his story, particularly the implications of digital identity and authenticity. He notes that the plot involves a blackmail scenario linked to a character presumed dead, raising questions about the authenticity of digital communications. This reflects broader concerns about cybersecurity, where vulnerabilities are often exploited rather than created anew. Bach emphasizes the importance of grounding his narrative in real-world technology and experiences, blending factual research with creative storytelling.

The conversation also touches on the governance of technology, critiquing current regulatory approaches that tend to be reactive rather than proactive. Bach argues that effective governance requires forward-thinking leadership capable of anticipating future challenges, particularly in areas like AI and blockchain. He stresses the need for businesses, including small and medium-sized enterprises, to engage with these issues beyond mere compliance, advocating for a broader sense of responsibility that includes stakeholder value.

For Managed Service Providers (MSPs) and IT service leaders, Bach's insights underscore the critical role they play in navigating the complexities of technology governance and cybersecurity. By understanding the vulnerabilities inherent in digital systems and advocating for responsible practices, MSPs can better support their clients in mitigating risks associated with misinformation and identity fraud. The episode serves as a reminder of the importance of ethical considerations in technology deployment and the need for proactive engagement in shaping a secure digital future.

Support the vendors who support the show:

👉 https://businessof.tech/sponsors/

Get exclusive access to investigative reports, vendor analysis, leadership briefings, and more.

👉 https://businessof.tech/plus

Want the show on your favorite podcast app or prefer the written versions of each story?

📲 https://www.businessof.tech/subscribe

Looking for the links from today’s stories?

Every episode script — with full source links — is posted at:

🌐 https://www.businessof.tech

Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:

💬 https://www.podmatch.com/hostdetailpreview/businessoftech

LinkedIn: https://www.linkedin.com/company/28908079

YouTube: https://youtube.com/mspradio

Bluesky: https://bsky.app/profile/businessof.tech

Instagram: https://www.instagram.com/mspradio

TikTok: https://www.tiktok.com/@businessoftech

Facebook: https://www.facebook.com/mspradionews

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Laith Palhawan, CEO and founder of OrangeCrew, has successfully transitioned his managed IT services company into the public sector by becoming GSA certified, allowing him to provide IT services to government agencies. This shift has required a deep understanding of compliance and security requirements that differ significantly from those in the private sector. In the public sector, clients expect adherence to strict standards and predefined solutions, which contrasts with the more flexible and responsive approach typically found in private business engagements.

Pahlawan's experience highlights the challenges of profitability in the managed services landscape, particularly when working with government contracts that often yield lower margins of 10-15%. He emphasizes the importance of strategic partnerships and effective business analysis to maintain sustainable margins. By utilizing tools like Power BI and Kaseya, OrangeCrew can track time and resources spent on each client, allowing for informed decisions about which clients to prioritize and which to decline based on profitability and demand.

The episode also delves into OrangeCrew's innovative use of artificial intelligence (AI) to enhance internal operations and client services. Pahlawan has developed a centralized database that integrates various data sources, enabling the use of AI to analyze client interactions and identify potential issues proactively. This system not only improves operational efficiency but also positions OrangeCrew as a forward-thinking MSP capable of offering advanced solutions to clients, particularly in the realm of AI.

For MSPs and IT service leaders, the insights shared by Pahlawan underscore the necessity of adapting to evolving client needs, particularly regarding compliance and AI integration. As businesses increasingly rely on AI for operational efficiency, MSPs must enhance their understanding of data management and automation to remain competitive. The conversation serves as a reminder that embracing new technologies and strategic partnerships can lead to sustainable growth and improved service delivery in a challenging market.

Support the vendors who support the show:

👉 https://businessof.tech/sponsors/

Get exclusive access to investigative reports, vendor analysis, leadership briefings, and more.

👉 https://businessof.tech/plus

Want the show on your favorite podcast app or prefer the written versions of each story?

📲 https://www.businessof.tech/subscribe

Looking for the links from today’s stories?

Every episode script — with full source links — is posted at:

🌐 https://www.businessof.tech

Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:

💬 https://www.podmatch.com/hostdetailpreview/businessoftech

LinkedIn: https://www.linkedin.com/company/28908079

YouTube: https://youtube.com/mspradio

Bluesky: https://bsky.app/profile/businessof.tech

Instagram: https://www.instagram.com/mspradio

TikTok: https://www.tiktok.com/@businessoftech

Facebook: https://www.facebook.com/mspradionews

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The episode reviews the outcomes of predictions made for 2025, highlighting the evolving role of automation and AI in Managed Service Providers (MSPs). Key findings indicate that while generative AI has improved data accessibility, it has not fully resolved existing reporting issues related to data quality and governance. Additionally, the anticipated widespread adoption of autonomous IT systems among small and medium-sized businesses (SMBs) has not materialized, as many still rely on traditional remote monitoring and management (RMM) tools. The episode emphasizes that AI governance and advisory services have become central to modern MSP offerings.

Further analysis reveals that while AI-driven legal services gained traction, MSPs have not widely adopted these as packaged offerings. Instead, they have focused on AI compliance and regulatory advisory services. The discussion also touches on the mixed results of fraud prevention becoming a standard service, with significant growth in some sectors but uneven adoption across the board. The episode concludes with a scorecard of predictions, noting a few clear successes in AI governance and readiness consulting, while highlighting a notable miss regarding decentralized MSP models.

Looking ahead to 2026, the episode presents several predictions that reflect the increasing importance of automation in IT services. It suggests that MSPs whose revenue models still depend heavily on human labor will face pressure to adapt, as automation becomes the primary driver of service scalability. The discussion also raises concerns about accountability in automation, predicting that individuals may be held responsible for failures in automated systems, emphasizing the need for robust governance frameworks.

The implications for MSPs and IT service leaders are significant. As automation becomes the production system for IT services, providers must focus on governance, risk management, and advisory roles to differentiate themselves in a competitive landscape. The episode underscores the necessity for MSPs to evolve their service offerings and business models to align with these trends, ensuring they remain relevant and capable of delivering value in an increasingly automated environment.

Support the vendors who support the show:

👉 https://businessof.tech/sponsors/

Get exclusive access to investigative reports, vendor analysis, leadership briefings, and more.

👉 https://businessof.tech/plus

Want the show on your favorite podcast app or prefer the written versions of each story?

📲 https://www.businessof.tech/subscribe

Looking for the links from today’s stories?

Every episode script — with full source links — is posted at:

🌐 https://www.businessof.tech

Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:

💬 https://www.podmatch.com/hostdetailpreview/businessoftech

LinkedIn: https://www.linkedin.com/company/28908079

YouTube: https://youtube.com/mspradio

Bluesky: https://bsky.app/profile/businessof.tech

Instagram: https://www.instagram.com/mspradio

TikTok: https://www.tiktok.com/@businessoftech

Facebook: https://www.facebook.com/mspradionews

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Matthew Nikravesh, CEO and co-founder of Solarus Technologies, discussed the evolution of managed services in response to the increasing demand for cloud solutions, particularly Azure, during the pandemic. Solaris Technologies, founded in 2012, focuses on providing managed services primarily to nonprofits and small to mid-sized businesses. The company has implemented an automated cloud management platform in partnership with Nerdio, which has enabled them to efficiently deploy Azure Virtual Desktops and streamline support processes for their engineers.

The conversation highlighted the importance of automation in reducing operational inefficiencies. Solarus Technologies has integrated automation tools, such as PIA, to manage user onboarding and ticket dispatching, achieving a 35% automation rate for incoming tickets. However, Nikravesh acknowledged that the journey toward effective automation is iterative, requiring ongoing adjustments to improve performance. The company has also seen significant benefits from automating user onboarding processes, which have reduced the back-and-forth communication typically associated with new hires.

Nikravesh also addressed the challenges faced by nonprofits in adopting AI technologies, noting that many organizations struggle with data readiness and security. To assist clients in overcoming these hurdles, Solarus Technologies collaborates with an AI consultant to conduct readiness assessments, ensuring that clients can effectively leverage AI tools when they are prepared. This proactive approach aims to help nonprofits focus on their missions rather than IT concerns.

For MSPs and IT service leaders, the discussion underscores the necessity of evaluating tool stacks and vendor partnerships strategically. Nikravesh emphasized the importance of smart revenue growth, advising MSPs to assess their client relationships and eliminate those that do not contribute positively to their bottom line. As the industry continues to evolve, the integration of cloud services and AI will remain critical topics for MSPs, necessitating a focus on delivering value while managing operational complexities.

Support the vendors who support the show:

👉 https://businessof.tech/sponsors/

Get exclusive access to investigative reports, vendor analysis, leadership briefings, and more.

👉 https://businessof.tech/plus

Want the show on your favorite podcast app or prefer the written versions of each story?

📲 https://www.businessof.tech/subscribe

Looking for the links from today’s stories?

Every episode script — with full source links — is posted at:

🌐 https://www.businessof.tech

Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:

💬 https://www.podmatch.com/hostdetailpreview/businessoftech

LinkedIn: https://www.linkedin.com/company/28908079

YouTube: https://youtube.com/mspradio

Bluesky: https://bsky.app/profile/businessof.tech

Instagram: https://www.instagram.com/mspradio

TikTok: https://www.tiktok.com/@businessoftech

Facebook: https://www.facebook.com/mspradionews

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The episode features a discussion on the current state of profitability and revenue growth within the Managed Service Provider (MSP) industry, highlighting that 2024 marks the fifth consecutive year of strong profitability. Despite this positive trend, revenue growth has cooled compared to the rapid increases seen from 2021 to 2023, with organic revenue growth peaking at 25% before declining to around 10.6%. This shift has led to concerns that MSPs may be under pressure; however, profitability metrics indicate that the industry remains healthy, with best-in-class firms achieving significantly higher earnings than their median peers.

Peter Kujawa of Service Leadership elaborates on the factors influencing these trends, noting that while profitability has improved, wage inflation has impacted service gross margins. The data reveals that the best-in-class MSPs maintain a W2 ratio that allows them to generate more revenue per employee compared to their median and bottom quartile counterparts. This efficiency is crucial as the industry matures, with many MSPs now facing the challenge of adapting to a more competitive landscape where automation and AI are becoming increasingly important.

The conversation also touches on the evolving compensation structures within MSPs, emphasizing the importance of incentive pay over base salaries. Best-in-class firms tend to offer higher variable pay percentages, which are tied to performance metrics that employees can control, thereby motivating better outcomes. This approach contrasts with the bottom quartile, where compensation structures may not align as effectively with performance, potentially leading to complacency.

For MSPs and IT service leaders, the key takeaway is the necessity of embracing operational efficiency and automation to remain competitive. As the market continues to mature, those who invest in automation and refine their compensation strategies will likely see improved profitability and growth. The episode underscores the importance of understanding market dynamics and leveraging data-driven insights to make informed business decisions.

Support the vendors who support the show:

👉 https://businessof.tech/sponsors/

Get exclusive access to investigative reports, vendor analysis, leadership briefings, and more.

👉 https://businessof.tech/plus

Want the show on your favorite podcast app or prefer the written versions of each story?

📲 https://www.businessof.tech/subscribe

Looking for the links from today’s stories?

Every episode script — with full source links — is posted at:

🌐 https://www.businessof.tech

Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:

💬 https://www.podmatch.com/hostdetailpreview/businessoftech

LinkedIn: https://www.linkedin.com/company/28908079

YouTube: https://youtube.com/mspradio

Bluesky: https://bsky.app/profile/businessof.tech

Instagram: https://www.instagram.com/mspradio

TikTok: https://www.tiktok.com/@businessoftech

Facebook: https://www.facebook.com/mspradionews

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Conflicting jobs data indicates a complex economic landscape for IT service providers, as the unemployment rate in the tech sector has risen to 4% with a loss of 134,000 jobs between October and November 2025. Despite a drop in the overall unemployment rate to 4.2% and a projected growth of managed services contributing $608 billion to the B2B technology sector, the mixed signals from economic indicators complicate decision-making for the Federal Reserve and raise concerns about consumer spending. Analysts emphasize that the current job losses reflect a shift in responsibility from internal roles to external managed service providers (MSPs), which may not alleviate underlying risks.

The National Institute of Standards and Technology (NIST) has released a draft profile addressing cybersecurity challenges posed by artificial intelligence (AI), highlighting the need for organizations to manage AI-related security risks effectively. This profile outlines how AI can enhance cybersecurity defenses while also detailing the responsibilities that come with its deployment. Recent assessments reveal that while some AI models perform better in security contexts, the lack of clarity around accountability when AI systems make decisions remains a significant concern for MSPs.

Private equity activity is accelerating in the managed services sector, exemplified by Broadwing Capital's acquisition of CloudScale365, which aims to create a platform addressing gaps in the fragmented IT-managed services market. This consolidation trend raises questions for MSPs about operational norms and the potential loss of control over their business models. As platforms seek to standardize pricing and decision-making processes, MSPs must consider how these changes will affect their service delivery and customer relationships.

For MSPs and IT service leaders, the evolving landscape underscores the importance of understanding where risk is shifting and how to price and govern accordingly. The retreat from AGI hype and the focus on practical AI applications signal a need for clarity in decision-making processes, particularly as automation becomes more prevalent. MSPs that can articulate the limitations of their AI systems and establish clear accountability frameworks will be better positioned to navigate the complexities of the current market.

Four things to know today

00:00 As Jobs Data Conflicts and Tech Employment Slips, Managed Services Absorb Risk and Responsibility

05:46 NIST’s AI Security Framework Meets Reality as Model Safety Gaps Expose Accountability Risks

08:54 Broadwing Launches MSP Platform to Standardize Scale, Signaling Growing PE Pressure on MSP Operations

11:03 AI Rebrands Itself as Open Source Expands, Automation Scales, and Accountability Gets Murkier

This is the Business of Tech.   

Supported by:  https://saasalerts.com/mspradio/

Support the vendors who support the show:

👉 https://businessof.tech/sponsors/

Get exclusive access to investigative reports, vendor analysis, leadership briefings, and more.

👉 https://businessof.tech/plus

Want the show on your favorite podcast app or prefer the written versions of each story?

📲 https://www.businessof.tech/subscribe

Looking for the links from today’s stories?

Every episode script — with full source links — is posted at:

🌐 https://www.businessof.tech

Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:

💬 https://www.podmatch.com/hostdetailpreview/businessoftech

LinkedIn: https://www.linkedin.com/company/28908079

YouTube: https://youtube.com/mspradio

Bluesky: https://bsky.app/profile/businessof.tech

Instagram: https://www.instagram.com/mspradio

TikTok: https://www.tiktok.com/@businessoftech

Facebook: https://www.facebook.com/mspradionews

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Thrive, a global technology outsourcing provider, is pursuing a $1 billion market position by the end of 2029, following significant revenue growth and 27 acquisitions since its inception. The company is focusing on enhancing its service offerings, particularly in managed artificial intelligence services, through a $100 million investment in its next-gen 3.0 platform. This shift raises critical questions for Managed Service Providers (MSPs) regarding who controls decision-making in IT operations as AI begins to play a more active role in execution rather than merely advisory functions. The integration of AI into managed services could lead to a concentration of power upstream, potentially undermining the authority and accountability of MSPs.

Recent data on IT leadership diversity reveals that representation has stagnated, with 83% of IT leaders being white and over 78% male. This lack of diversity in leadership roles can create strategic blind spots, particularly as technology evolves rapidly. The report indicates that while there has been some improvement in gender representation among larger companies, racial diversity remains largely unchanged. This stability in leadership demographics may limit the perspectives necessary for effective technology governance, especially in a landscape increasingly influenced by AI and automation.

Additional developments include the launch of the HiPori Partner Program, which aims to enhance secure mobile access for resellers and MSPs, and TD Cinex's AI Game Plan Workshop designed to assist partners in implementing AI solutions for their customers. These initiatives reflect a growing trend among technology providers to standardize outcomes and streamline processes, which may inadvertently reduce the differentiation and authority of MSPs as they adopt these frameworks.

For MSPs and IT service leaders, the implications of these developments are significant. As AI-driven execution becomes more prevalent, MSPs must redefine their responsibility and authority to avoid unpriced liabilities. The current landscape suggests that those who can clearly articulate control and accountability in automated environments will have a competitive advantage. Ignoring these shifts could lead to operational risks and customer dissatisfaction, emphasizing the need for MSPs to adapt their strategies in response to the evolving technological landscape.

Three things to know today

00:00 Thrive’s $1B Ambition, OpenAI Investment, and AI Automation Push Highlight a Shift in Who Controls “Good IT”

05:26 Q4 2025 IT Leadership Data Confirms a Five-Year Stall in Diversity Despite Rapid Technology Change

10:56 Hypori, TD Synnex, and N-able Moves Show MSPs Trading Local Control for Centralized AI and Endpoint Frameworks

This is the Business of Tech.   

Supported by:  ingocni.com/tech10   PROMO CODE: tech10

https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship

Support the vendors who support the show:

👉 https://businessof.tech/sponsors/

Get exclusive access to investigative reports, vendor analysis, leadership briefings, and more.

👉 https://businessof.tech/plus

Want the show on your favorite podcast app or prefer the written versions of each story?

📲 https://www.businessof.tech/subscribe

Looking for the links from today’s stories?

Every episode script — with full source links — is posted at:

🌐 https://www.businessof.tech

Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:

💬 https://www.podmatch.com/hostdetailpreview/businessoftech

LinkedIn: https://www.linkedin.com/company/28908079

YouTube: https://youtube.com/mspradio

Bluesky: https://bsky.app/profile/businessof.tech

Instagram: https://www.instagram.com/mspradio

TikTok: https://www.tiktok.com/@businessoftech

Facebook: https://www.facebook.com/mspradionews

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Ransomware payments have decreased by 33%, dropping from approximately $1.1 billion in 2023 to $734 million in 2024, according to a report from the Financial Crimes Enforcement Network. Despite this decline in payments, the number of ransomware attacks has remained relatively stable, with 1,476 incidents reported last year, a slight decrease of only 2% from the previous year. Notably, there has been a 700% increase in ransomware attacks targeting hypervisors, which are often less secure than traditional endpoints. This shift in attack vectors poses new risks for Managed Service Providers (MSPs) as attackers adapt their strategies to exploit vulnerabilities in hypervisor architectures.

In addition to the ransomware landscape, state attorneys general have issued warnings to major tech companies, including OpenAI and Microsoft, regarding the potential harms of generative AI, particularly concerning child safety. The letter emphasizes the need for stronger safeguards to prevent AI systems from engaging in harmful behaviors. Meanwhile, Congress has allowed the Technology Modernization Fund, which supports federal IT projects, to expire, freezing nearly $200 million in funding. This situation creates a disconnect, as states demand accountability from AI vendors while federal funding for modernization efforts remains stalled.

The episode also discusses OpenAI's transition to a for-profit model, raising concerns about transparency and accountability in AI development. Allegations have emerged that OpenAI has self-censored research highlighting the negative impacts of AI, leading to employee resignations. This shift complicates the narrative around AI's societal impacts, as vendors may prioritize their commercial interests over objective reporting. Furthermore, security vendors are introducing new products aimed at enhancing AI security, but these solutions often focus on control rather than responsibility, leaving MSPs vulnerable to client expectations and potential liabilities.

For MSPs and IT service leaders, the evolving landscape of ransomware and AI governance underscores the importance of proactive risk management. As AI systems become integral to business operations, the expectation for accountability will increase, particularly in regulated environments. MSPs must prioritize clear governance structures and be prepared to address the implications of AI deployment, ensuring that they do not inadvertently absorb risks that are not adequately priced in their service agreements. The focus should be on establishing limits and maintaining oversight to protect both their clients and their own business interests.

Support the vendors who support the show:

👉 https://businessof.tech/sponsors/

Get exclusive access to investigative reports, vendor analysis, leadership briefings, and more.

👉 https://businessof.tech/plus

Want the show on your favorite podcast app or prefer the written versions of each story?

📲 https://www.businessof.tech/subscribe

Looking for the links from today’s stories?

Every episode script — with full source links — is posted at:

🌐 https://www.businessof.tech

Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:

💬 https://www.podmatch.com/hostdetailpreview/businessoftech

LinkedIn: https://www.linkedin.com/company/28908079

YouTube: https://youtube.com/mspradio

Bluesky: https://bsky.app/profile/businessof.tech

Instagram: https://www.instagram.com/mspradio

TikTok: https://www.tiktok.com/@businessoftech

Facebook: https://www.facebook.com/mspradionews

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.