AI is rapidly emerging as a significant revenue driver for managed service providers (MSPs), with a notable increase in expectations for AI-related revenue. According to recent data, 53% of MSPs anticipate substantial AI revenue this year, a significant rise from 32% the previous year. This shift is attributed to a growing understanding of AI's potential, particularly following the rise of generative AI technologies like ChatGPT. While some companies are genuinely building capabilities, others may still be caught up in the hype. The conversation also touches on the importance of integrating AI into existing services, such as cybersecurity and data management, as MSPs look to monetize these technologies.

On the flip side, adversaries are also leveraging AI to enhance their tactics, particularly in social engineering and phishing campaigns. MacKenzie Brown from Blackpoint Cyber highlights that threat actors are using AI to improve their operational effectiveness, making their attacks more sophisticated. This raises concerns about the security posture of organizations that may not have robust data governance and identity management practices in place. As MSPs begin to adopt AI technologies, they must also ensure that their clients have the necessary security measures to protect against these evolving threats.

The discussion further explores the ongoing challenges in cybersecurity, particularly regarding basic security practices that remain unaddressed. Misconfigurations in cloud environments continue to be a significant vulnerability, and many organizations still struggle with fundamental cybersecurity measures. Carolyn April emphasizes that while cybersecurity remains a critical revenue driver for MSPs, many are still operating at a basic level rather than advancing to more sophisticated security solutions. This gap presents both a challenge and an opportunity for MSPs to enhance their service offerings.

Finally, the conversation touches on the implications of recent developments in cybersecurity policy and enforcement. The discussion highlights the importance of having consequences for breaches of cybersecurity laws, as a lack of enforcement can undermine the efforts of solution providers. Both MacKenzie and Carolyn agree that the current state of cybersecurity policy is crucial for the health of the industry, as it impacts how MSPs can effectively sell their services. The episode concludes with insights on the need for better education and talent development in the cybersecurity field to address these ongoing challenges.

All our Sponsors:   https://businessof.tech/sponsors/

Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/

Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/

Support the show on Patreon: https://patreon.com/mspradio/

Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech

Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com

Follow us on:

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

YouTube: https://youtube.com/mspradio/

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

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

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

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