MSPs risk overstating their artificial intelligence capabilities before developing the internal expertise, governance and security practices needed to deliver them, according to Carolyn April, vice-president of research and market intelligence at the Global Technology Industry Association (GTIA).Speaking to IT Europa at GTIA ChannelCon EMEA in London, April offered a measured assessment of AI’s potential, arguing that while the technology is becoming unavoidable, providers need to be realistic about how they approach it. “I do not believe that you can decide as a company in the channel today to opt out. That is not an option,” she said.However, she cautioned against rushing into customer-facing AI services without first developing internal capabilities, particularly around governance, acceptable-use policies and employee training. “I think right now we have a maturity gap going on,” she said, warning that some providers may be overestimating their own understanding of the technology.Her comments coincide with new GTIA research showing growing enthusiasm for AI-related cybersecurity services. Across the UK and Ireland, 78% of IT service providers plan to introduce new cybersecurity offerings over the next year, while 47% identify cybercriminals’ use of generative AI as their leading security concern, up from 37% in 2025.Moving beyond commoditised servicesApril believes AI and cybersecurity could help MSPs address another pressing commercial challenge: declining margins on traditional managed services and growing competition from lower-cost providers.”We are seeing far more margin and emphasis on new growth around advisory services, around AI, and around cybersecurity,” she said. However, she suggested that simply reselling AI products or adding Microsoft Copilot licences would do little to differentiate providers in an increasingly competitive market.Instead, April pointed towards industry specialisation, particularly where MSPs can combine AI capabilities with cybersecurity, data management and regulatory expertise. “You need to elevate your game into some of those areas where the majority of MSPs aren’t going to go,” she said.The latest GTIA figures support this direction. Among UK and Irish providers, 46% expect data privacy and compliance to generate their greatest cybersecurity revenue growth over the next year, followed by consulting and risk assessments at 43%, and agentic AI and other AI-related cybersecurity services at 42%.April also acknowledged the growing difficulty of winning customers from established MSP competitors. Rather than relying entirely on new customer acquisition, she sees opportunities to expand relationships with existing clients through deeper consulting engagements and additional services. “We’re seeing a lot of movement though in the ability to increase deal size among existing customers,” she said.AI could reshape vendor relationshipsThe emergence of new AI vendors and the ability of MSPs to develop their own tools could also change the balance of power between technology suppliers and their channel partners.April noted declining enthusiasm towards established vendors in GTIA’s broader channel research, arguing that adding AI functionality to existing products will not necessarily satisfy partners seeking genuine differentiation. “That’s going to be commodity. It’s what everyone’s going to sell,” she said.She also highlighted how some technically capable MSPs are using AI-assisted development to build their own products, potentially reducing dependence on established software suppliers. “They’re finding ways to build and create products using AI that help them circumvent even having to use a vendor anymore.”April believes this could provide MSPs with greater negotiating power over partner programmes, incentives and the commercial arrangements offered by suppliers, although she expects considerable disruption as the market evolves.Cybersecurity fundamentals still matterDespite the enthusiasm surrounding AI, GTIA’s separate Q3 2026 Quarterly Cybersecurity Tracker suggests significant opportunities remain in established security services.The North American survey of 309 providers found that although 93% offer cybersecurity as a core or complementary service, only 42% had deployed multifactor authentication across all critical systems for more than half their customers. Just 35% had deployed immutable, air-gapped backups that widely.April argued that the growing relationship between AI and cybersecurity should encourage MSPs to move customers beyond basic security packages. However, she also recognised that cybersecurity budgets are finite. “Eventually customers do have to say there’s a line here. We’re willing to take this much of a risk,” she said.For MSPs serving smaller businesses, April believes the challenge is communicating the commercial consequences of that risk without relying excessively on fear-based selling.Her message was that providers must balance new AI opportunities with practical security advice, helping customers understand what they need to protect, what they can afford and where investment will deliver meaningful value.
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