Business of Tech: Daily MSP News & IT Services Analysis

Generative AI is significantly transforming technology jobs, particularly by automating repetitive tasks such as coding and data processing. A recent analysis by Indeed indicates that while many tech skills will evolve, less than 1% are likely to be fully replaced by AI. This shift is creating challenges for organizations, as employees struggle with the overwhelming number of AI tools available, leading to wasted hours and lost productivity. Companies are urged to streamline their operations by implementing unified platforms that can integrate AI effectively, reducing manual tasks and enhancing overall productivity.

The issue of AI agent sprawl is highlighted, where organizations may manage numerous AI agents, resulting in chaos rather than transformation. Analysts are reportedly losing an average of 9.1 hours each week due to inefficient workflows, costing companies billions annually. Despite this, many executives mistakenly believe their teams are operating at peak productivity. The podcast emphasizes the need for organizations to measure productivity based on actual output and create operational visibility to unlock growth potential.

Diversity in IT leadership is another pressing concern, as the representation of women in technology continues to decline. A recent report reveals that while the number of women in the ICT sector has increased, men still dominate management roles. The exit of thousands of women from tech roles each year is attributed to a lack of career progression and recognition, rather than personal responsibilities. This trend not only affects workplace culture but also has significant economic implications, with billions lost due to decreased productivity and recruitment challenges.

Finally, Google is merging Android and Chrome OS to create a new operating system aimed at enhancing AI capabilities on personal computers. This development is expected to impact how IT manages devices, particularly in K-12 and small business markets. Providers are advised to prepare for this shift by developing training and support strategies for clients. The podcast concludes with a call to action for IT leaders to focus on practical solutions to modern challenges, including email security, while also addressing the critical need for diversity and inclusion within the tech industry.

Four things to know today

00:00 AI Isn’t Killing Jobs—It’s Killing Repetition. The Real Risk Is Agent Sprawl and Lost Productivity

04:52 Vendors Double Down on MSP Stack: MCP Standardization, New Partnerships, and Leadership Shifts

08:37 Diversity in Tech Leadership Stalls as Women Exit and DEI Programs Fade—A Capacity Crisis for Providers

13:36 Google’s New Unified OS: AI Promise for Users, Support Headache for Providers

This is the Business of Tech.   

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About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

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The Defense Department's Cybersecurity Maturity Model Certification (CMMC) effort has uncovered that many contractors are unaware of export control violations, which could lead to significant legal and financial penalties. As the certification becomes mandatory, early assessments indicate common violations of the International Traffic in Arms Regulation and Export Administration Regulations. Contractors are urged to map controlled, unclassified information and review data controls to identify and mitigate these violations before audits occur. This highlights the critical need to integrate export compliance with cybersecurity measures.

Meanwhile, Congress is experimenting with Microsoft's AI chatbot, CoPilot, as part of an initiative to incorporate artificial intelligence into legislative operations. This move has sparked concerns among critics regarding the potential risks of misinformation and privacy hazards associated with using experimental technology in governance. Additionally, Congress faces challenges in renewing a vital cyber threat information sharing program, which is set to expire soon, raising alarms about the implications for national cybersecurity efforts.

On the cybersecurity front, artificial intelligence is increasingly being exploited by criminal hackers, leading to a new era of sophisticated attacks. Generative AI technologies are being used to craft convincing phishing scams and manipulate everyday tools to execute attacks without triggering security alerts. Recent incidents have demonstrated the effectiveness of these tactics, emphasizing the need for heightened vigilance and advanced security measures to protect against evolving threats.

In the realm of technology, companies like Notion, Google, and Zoom are embedding powerful AI features into their platforms, fundamentally changing how users interact with these tools. Notion's new AI agent can autonomously perform tasks, while Google has integrated its Gemini AI into Chrome for enhanced usability and security. Zoom is set to introduce photorealistic AI avatars for meetings, showcasing the rapid adoption of AI in everyday applications. As these tools become the new baseline, IT service providers must adapt by focusing on governance, compliance, and security to ensure that their clients can safely navigate this evolving landscape.

Four things to know today

00:00 Compliance Blind Spots, Political Delays, and AI Experiments Show Why IT Providers Must Be the Steady Hand

05:02 Generative AI Fuels Phishing and Supply Chain Attacks While SonicWall and WatchGuard Struggle With Flaws

09:08 Notion, Google, and Zoom Push AI Deeper Into Everyday Tools

12:43 Ingram Micro Credits Xvantage for Ransomware Recovery, but MSPs Should Focus on Client Continuity

This is the Business of Tech.  

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About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

MSP Radio is supported by our partners:

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Americans are increasingly anxious about artificial intelligence (AI), with a recent Pew Research Center study revealing that 50% of participants express more concern than excitement regarding AI's growing presence in daily life. This marks a significant rise from 37% in 2021. The study highlights skepticism about AI's impact on creativity and interpersonal relationships, with many believing it could worsen creative thinking and negatively affect human connections. This growing anxiety underscores the need for better understanding and control over AI applications in society.

In the workplace, AI is reshaping learning and development, with organizations in the US, UK, Australia, and New Zealand increasing their budgets for these initiatives. A report from LearnUpon indicates that 43% of learning leaders fear AI could fully replace their roles, while 40% anticipate partial changes due to AI disruption. Despite the investment in learning and development, there is a palpable tension as employees question whether AI will ultimately assist or displace them, raising concerns about trust and stability in the workplace.

Meanwhile, NVIDIA's recent $100 billion investment in OpenAI has sparked discussions about the stability of the AI market. This investment is part of a larger trend where major tech firms are projected to invest over $325 billion in AI data centers globally. However, the cycle of capital and chips raises questions about real demand versus artificial demand, as the investment appears to be a circular loop that could lead to instability if market conditions change. Providers are advised to focus on building value through governance and integration rather than relying solely on AI infrastructure costs.

A wave of new vendor launches, including Acronis, Hexnode, and CloudRadial, highlights a trend towards automation and consolidation in the industry. These companies are introducing solutions that integrate security, backup, and management functions to simplify operations for managed service providers (MSPs). As MSPs begin to take on vendor roles themselves, the emphasis is on creating efficiencies and better governance to enhance client relationships. The overarching theme is that while technology evolves, the real differentiation for providers will come from how they implement and govern these tools to deliver meaningful business outcomes.

Three things to know today

00:00 Pew Finds Americans More Worried Than Excited About AI as Workplace and Research Risks Mount

05:10 Nvidia’s $100B Bet on OpenAI Fuels Data Center Boom—But Risks a Circular Spending Loop

07:52 Vendors Race to Simplify MSP Stack With Security, AI, and Automation—While Netrio Proves Providers Can Be Builders Too

This is the Business of Tech.   

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About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

MSP Radio is supported by our partners:

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NVIDIA has made a significant move by investing $5 billion in Intel, acquiring approximately 4% ownership of the company. This partnership aims to co-develop custom data center and personal computer products, integrating NVIDIA's advanced AI and accelerated computing capabilities with Intel's leading CPU technologies. The collaboration is expected to create custom x86 chips that will be manufactured by Intel to NVIDIA's specifications, potentially generating an annual opportunity worth between $25 and $50 billion once the products are launched. Despite this partnership, Intel will continue to develop its own ARC graphic processing units, although the messaging around this dual focus may create confusion.

The Federal Reserve has cut interest rates by a quarter point, a decision framed as a risk management measure amid a cooling labor market. While job gains have slowed and inflation remains high, the Fed's cautious approach indicates limited support for deeper cuts. In the tech sector, the U.S. personal computer industry is facing challenges, with shipments declining due to inventory issues and consumer reluctance to upgrade their devices, even with the impending end of support for Windows 10. This stagnation in consumer sales reflects broader economic uncertainties as buyers prioritize essential expenses.

Meanwhile, global spending on artificial intelligence is projected to reach nearly $1.5 trillion this year, driven by a boom in cloud data center construction and rising enterprise investments in AI technologies. Despite the enthusiasm surrounding AI, a recent McKinsey report reveals that 80% of companies utilizing generative AI have not seen tangible impacts on their earnings, highlighting a disconnect between the hype and real-world performance. As stock prices rise, recession signals are emerging, suggesting a need for caution in an increasingly concentrated market.

Managed service providers (MSPs) are strategically positioned within a $608 billion industry, despite a decline in optimism regarding significant revenue growth. The demand for managed IT services continues to rise, with many providers diversifying their revenue streams by offering consulting and design services. Additionally, IT outages are costing businesses an estimated $76 million annually, emphasizing the importance of uptime over tools. As the landscape evolves, providers must focus on delivering outcomes rather than competing solely on software, ensuring that customers receive the value they need to maintain business continuity.

Three things to know today

00:00 Fed Rate Cut, PC Sales Slump, and $1.5T AI Hype: Why IT Providers Must Focus on Security and Outcomes

04:36 $76M Downtime Losses, Cooling MSP Optimism, 7x Security Multipliers, and Mainframe ROI—All Point to Services as the Real Value

08:16 Nvidia Buys 4% of Intel in $5B Deal, Betting on Custom AI Chips for Servers and PCs

This is the Business of Tech.   

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About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

MSP Radio is supported by our partners:

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Supporting the IT services community through insights, analysis, and transparency.

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Angelo Ponzi, a seasoned marketing strategist with over 30 years of experience, discusses the challenges of brand differentiation in the crowded managed services provider (MSP) and IT services market. He emphasizes the importance of moving away from company-centric messaging, which often leads to a homogenized market where all providers sound the same. Instead, he advocates for a customer-centric approach that focuses on solving specific problems and addressing pain points, thereby creating a unique value proposition that resonates with potential clients.

Ponzi introduces the VRIO framework, which assesses whether a service is valuable, rare, and difficult to imitate. This framework helps businesses identify their competitive advantages and differentiate themselves from competitors. He also highlights the significance of understanding the market and conducting research, which can be as simple as interviewing current customers to gain insights into how they perceive the brand and its offerings. This understanding is crucial for crafting relevant messaging that can effectively attract new clients.

The conversation also touches on the balance between long-term brand building and immediate revenue generation. Ponzi suggests that companies should have a clear and consistent message that aligns with their brand pillars. This consistency helps build a strong reputation over time, which is essential for attracting and retaining customers. He stresses the need for businesses to understand their identity and the problems they solve, rather than just focusing on their history or longevity in the market.

Finally, Ponzi addresses the impact of artificial intelligence (AI) on marketing strategies. He notes that while AI is transforming the industry, many businesses are still grappling with how to effectively utilize it. The conversation concludes with Ponzi encouraging companies to leverage their unique strengths and relationships to stand out in a competitive landscape, ultimately driving growth and success.

About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

MSP Radio is supported by our partners:

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AI-driven transformation is underway as over half of tech and media firms plan major organizational restructures to integrate artificial intelligence, despite the high failure rate of early pilot programs. Salesforce expects AI to handle 50% of service calls by 2027, while Business Insider is quietly using AI to draft articles. Fiverr’s "AI-first" restructuring has led to a 30% workforce reduction, sparking backlash. The rapid shift reveals both opportunity and risk, especially as poor implementation and loss of customer trust threaten to undermine the promised benefits.

Meanwhile, Microsoft is under fire from Consumer Reports for ending support for Windows 10 on October 14th, leaving hundreds of millions of devices potentially vulnerable. Many cannot upgrade to Windows 11 due to hardware limitations, and Microsoft’s proposed $30/year fee for extended updates has drawn criticism. Managed service providers (MSPs) now face an uphill battle to communicate this change, mitigate client dissatisfaction, and navigate rushed hardware refreshes.

Cyber resilience and AI are converging across the IT stack. N-able, Syncro, and LogicMonitor are rolling out AI-driven features such as anomaly detection, M365/Entra ID backups, and cross-cloud observability. Microsoft Research’s open-source MCP Interviewer tool could open new service opportunities for validating AI infrastructure. The trend signals a shift from AI as novelty to AI as operational backbone — but with much of it still experimental, caution is advised.

Finally, big questions loom: Is poor leadership being misdiagnosed as a failure of remote work? Can Oracle’s $317B backlog — heavily reliant on OpenAI — actually deliver value? And if generative AI increases global GDP by trillions, who truly benefits — vendors or end users? At the grassroots level, students turning to AI for homework raises concerns about eroding critical thinking and long-term workforce preparedness.

Four things to know today

00:00 Over Half of Tech Firms Plan Major Restructures to Embrace AI, Despite High Failure Rates

05:28 Consumer Reports Urges Microsoft to Extend Windows 10 Support Beyond October 14 Deadline

07:03 From Backup Anomaly Detection to MCP Reliability: AI and Cyber Resilience Are Converging in the IT Stack

09:48 From Oracle’s AI Gamble to Students Skipping Homework: Who Really Captures the Value of Technology?

This is the Business of Tech.   

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About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

MSP Radio is supported by our partners:

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Supporting the IT services community through insights, analysis, and transparency.

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Travis Springer, president of Sagiss, a managed services provider based in Dallas, shares insights into his leadership journey and the unique approach his company takes in the IT services industry. Since taking over just before the COVID-19 pandemic, Travis has led a team of over 20 professionals, helping clients navigate significant challenges, including the rapid transition to remote work and compliance issues. Sagiss has built a reputation for its high-touch, in-person support, which sets it apart from many competitors that lean heavily on remote and automated services.

Travis discusses the importance of maintaining strong client relationships through face-to-face interactions, which he believes foster deeper conversations about business needs and strategic outcomes. By proactively visiting clients, even when there are no open tickets, Sagiss has been able to build trust and uncover hidden issues that clients may not have reported. This approach has proven beneficial for client retention and referrals, ultimately contributing to the company's growth.

The conversation also delves into the evolving landscape of client needs, particularly around security and technology adoption. Travis highlights the increasing interest in AI and cloud solutions, as well as the necessity for businesses to develop comprehensive incident response and business continuity plans. He emphasizes the importance of understanding clients' specific needs and providing tailored solutions, rather than simply offering generic services.

Reflecting on his leadership experience during the pandemic, Travis shares a key lesson: the role of a leader is primarily about managing people and fostering a positive company culture, rather than just focusing on operations and technical tasks. He has learned to prioritize one-on-one interactions with team members, which has led to improved morale and productivity. This shift in focus has not only helped Sagiss navigate the challenges of the past few years but has also positioned the company for future success.

About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

MSP Radio is supported by our partners:

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OpenAI has launched a beta version of Developer Mode for ChatGPT, which allows developers to utilize full read and write support for model context protocol tools. This new feature promises to enhance automation capabilities, enabling developers to create connectors for various applications, such as updating JIRA tickets or triggering workflows in services like Zapier. However, the introduction of this feature raises significant security concerns, particularly regarding the potential for prompt injections and the risk of malicious users exploiting these capabilities to access sensitive information. As the industry rapidly adopts this model context protocol, the need for secure configurations becomes increasingly urgent to prevent data breaches.

In addition to Developer Mode, OpenAI has released GPT-5 Codecs, a large-language model optimized for coding tasks. This new model has reportedly led to a tenfold increase in usage among developers within a month, largely due to its integration with GitHub for dynamic code reviews. The Codex model has been trained on real-world coding tasks, making it a powerful tool for software engineers. Developers are already recognizing its potential to identify complex bugs that other tools may miss, which could lead to higher quality code and faster delivery cycles.

Microsoft is also making strides in the AI space by introducing free co-pilot chat features in its Office applications for all Microsoft 365 Business users. This update includes a co-pilot chat sidebar in key applications like Word, Excel, and Outlook, allowing users to draft documents and analyze spreadsheets without needing an additional co-pilot license. While the premium version offers enhanced capabilities, the free features change the baseline for AI accessibility, putting powerful tools in the hands of every employee and raising concerns about shadow IT.

On the cybersecurity front, the U.S. government has redirected crucial funding originally allocated to combat threats from Huawei towards tax cuts for wealthy individuals and corporations. This shift has left national security at risk, as projects aimed at enhancing U.S. cybersecurity and infrastructure suffer from a lack of follow-through. Meanwhile, the Department of Defense is set to implement its Cybersecurity Maturity Model certification requirements, which will be mandatory for defense contractors. As scammers increasingly target small businesses with fake reviews, the need for effective cybersecurity measures and compliance becomes more pressing for service providers.

Four things to know today

00:00 AI Becomes Default: OpenAI Expands Workflows, Microsoft Democratizes Copilot, and Licensing Chaos Grows

07:19 Huawei Money Gone, CMMC Is Here, and Your Reviews Are Under Attack

10:04 Devicie, Zensai, and Apple Redefine Value: Automation, Adoption, and Repair Access

12:57 Twice the Reach, No More Cash: Broadband Program’s Success Meets a Dead End

This is the Business of Tech.   

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About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

MSP Radio is supported by our partners:

ABC Solutions · CometBackup · Firetail · HaloPSA · LogMeIn · Mailprotector · Pax8 · Rythmz · ScalePad · TimeZest · Transit AI

Supporting the IT services community through insights, analysis, and transparency.

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

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Microsoft has announced a new policy requiring employees to return to the office three days a week, citing internal data that suggests in-person collaboration enhances employee engagement and productivity. However, this move comes amidst a growing trend where remote-first companies are experiencing faster growth rates. A report indicates that firms allowing remote work are growing 1.7 times faster than those enforcing full-time office attendance. This disparity highlights a potential conflict between large corporations' desire for control and culture and the preferences of employees who increasingly favor flexible work arrangements.

In the realm of artificial intelligence, a new model developed by the University of Artificial Intelligence was jailbroken just two days after its launch, raising concerns about the trustworthiness of AI in enterprise settings. The incident underscores the need for companies to address issues related to data privacy and contract alignment, as enterprises are wary of how their data is utilized. Experts emphasize that businesses should focus on building trust with their clients regarding AI deployment, rather than simply adopting the latest technologies without understanding their implications.

The Pentagon is facing similar challenges with AI integration in military operations, where a lack of trust in AI outputs could lead to significant risks. A report highlights the necessity for a transparent approach to AI in defense, advocating for a unified strategy to ensure the effective deployment of trustworthy AI agents. The findings suggest that both military and business sectors must prioritize trust and transparency to avoid the pitfalls associated with AI reliance.

Huntress found itself in the spotlight after an attacker inadvertently installed its security tool, allowing the company to monitor the hacker's activities for three months. This incident provided valuable insights into modern cybercrime techniques but also sparked ethical debates about the responsibilities of cybersecurity firms. The situation illustrates the importance of knowledge sharing within the cybersecurity community, as vendors should not only provide software solutions but also contribute to the collective understanding of emerging threats.

Four things to know today

00:00 Microsoft Pushes Office Mandate, But Research Shows Remote Firms Growing Faster

04:12 K2 Think Jailbreak and Gartner Warning Underscore AI’s Readiness Gap for Enterprise Trust

06:24 From Pentagon to Boardroom: AI’s Biggest Challenge Is Trust, Not Technology

08:44 Huntress’s Accidental Hacker Surveillance Reveals AI-Driven Threats and Ignites Ethics Debate

This is the Business of Tech.   

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About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

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Small businesses and managed service providers (MSPs) are currently facing a significant labor squeeze, with many unfilled job openings despite a backdrop of economic growth. According to recent reports, a notable percentage of small business owners are struggling to find qualified candidates, particularly in sectors like construction and manufacturing. The IT job market is also experiencing a downturn, with a rising unemployment rate among IT professionals, highlighting the challenges in finding the right talent for emerging technologies such as AI and blockchain. This situation is forcing businesses to rethink their talent strategies and consider automation and advisory services as solutions to labor shortages.

Venture capital is increasingly flowing into AI-driven startups, particularly those targeting the managed service provider sector. A significant portion of venture capital investment is now directed towards AI, with companies like Titan aiming to roll up MSPs and enhance their operations through automation and AI technologies. This trend indicates a shift in the business landscape, where traditional service models may be disrupted by new entrants leveraging AI to improve efficiency and reduce costs. The potential for these companies to scale rapidly raises concerns for existing service providers, who may find themselves competing against automated solutions.

The integration of AI in the workplace is accelerating, with a growing number of employees utilizing AI tools for various professional tasks. However, a recent study reveals that a staggering 95% of corporate AI projects fail to deliver significant revenue increases, often leading to data breaches and other complications. This disconnect between enthusiasm for AI and its practical implementation presents an opportunity for service providers to step in and guide clients through the complexities of AI integration. By offering strategic advice and support, providers can help businesses turn AI from a mere novelty into a valuable asset that addresses workforce challenges.

The consulting industry is also undergoing a transformation, with a decline in job postings and a shift towards specialized expertise. As AI consultants emerge, traditional consulting firms are feeling the pressure, particularly in entry-level positions. This trend mirrors past experiences where new consultants capitalized on emerging technologies, potentially undermining established providers. To remain competitive, managed service providers must adapt by developing their own AI capabilities or partnering with other vendors. By doing so, they can maintain their relevance and ensure they are not sidelined by new entrants promising quick solutions without the necessary technical depth.

Four things to know today

00:00 From Construction to Code: Job Market Turbulence Highlights SMB Strain and MSP Talent Gap

04:44 VC Bets Show MSPs Are Prime Target for AI Disruption and Consolidation

06:58 Shadow IT Goes Mainstream: Employees Embrace AI While Corporate Projects Flounder

10:24 Consulting in Crisis: AI Cuts Entry Roles While New “AI Consultants” Chase Clients Directly

This is the Business of Tech.   

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About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

MSP Radio is supported by our partners:

ABC Solutions · CometBackup · Firetail · HaloPSA · LogMeIn · Mailprotector · Pax8 · Rythmz · ScalePad · TimeZest · Transit AI

Supporting the IT services community through insights, analysis, and transparency.

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

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