Observations from GTIA: AI Growth Is Real, but Discipline Wins

AI Is Everywhere, But Execution Isn’t

Nearly every MSP is experimenting with AI right now, and GTIA data backs that up.

53% of channel companies expect meaningful AI-driven revenue growth over the next two years. AI is also showing up across the business, from automation to sales and marketing.

But sitting through the session, the bigger takeaway was this: the gap is no longer about who is using AI. It’s about who is using it well.

You can see it in a few areas:

• Some MSPs are integrating AI into operations, others are still testing tools.
• Some are figuring out how to monetize it, others are keeping it internal.
• Some have a clear strategy, others are adding tools without a plan.

Most MSPs are somewhere in between.

The “Crowded Middle” Is Very Real

One of the more interesting visuals showed how MSPs are distributed across the AI spectrum:

• 47% are “AI-invested”
• 28% are “AI-driven”
• 23% are “AI-curious”
• Only 3% are avoiding AI entirely

That’s a pretty typical bell curve.

What it really means is that most of the channel is sitting in the middle. They’re investing and experimenting, but they haven’t fully operationalized AI yet.

Growth Is There, But It’s Measured

There’s definitely growth in the market:

• IT services spending is projected to reach $1.73T globally
• AI, cybersecurity, and cloud continue to lead demand
• Increasing complexity is driving the need for expertise

At the same time, it doesn’t feel like a boom.

A lot of MSPs describe the market as steady or changing, not accelerating. Profitability is still a challenge, especially in cloud and recurring models.

The phrase that stuck with me from the session was simple:

Growth is real, but it’s measured.

Services Are Growing, But the Model Isn’t Simplifying

Another theme that came through clearly is that the channel isn’t becoming purely services-led. It’s becoming more layered.

Services are growing and are expected to make up around 40% of revenue by 2026. But product revenue is still there.

When you look at how MSPs identify themselves:

• 37% say they are services MSPs,
• 32% say business solutions, and
• 31% are still product-focused.

That’s not convergence into one model. It’s a mix that’s getting harder to manage.

Complexity Is Both the Opportunity and the Challenge

GTIA calls out technology complexity as the number one driver of growth, which makes sense.

But what stood out in the session is that complexity isn’t just technical anymore. It’s operational.

You see it in things like:

• Pricing models expanding instead of consolidating,
• Vendor portfolios being actively managed and reduced, or
• AI adding new layers to service delivery.

In other words, the business itself is getting more complicated to run.

AI Isn’t Replacing Pricing, It’s Changing It

One of the more practical discussions was around pricing.

Traditional models like per-user and per-device are still dominant. Those aren’t going away.

But AI is introducing new dynamics:

• More dynamic pricing approaches
• Greater use of data to inform pricing decisions
• A bigger focus on optimizing profitability

This is a meaningful shift, and a lot of MSPs are not fully set up for it yet.

Planning and Execution Still Drive Outperformance

One of the clearest patterns from the session was around execution.

MSPs that have a plan, run a tight operation, and consistently track performance tend to outperform.

They’re more likely to exceed revenue goals and maintain stronger profitability.

GTIA data supports that. About 30% of MSPs are ahead of plan, while most are simply on target. The MSPs ahead tend to report stronger overall performance and better vendor relationships.

Where Growth Is Actually Coming From

Looking at services today, the most commonly sold are:

• Consulting
• Data services
• Application and development work
• Cloud

Looking ahead, the highest expected growth areas are:

• AI services (37%)
• Cybersecurity (35%)
• Cloud and Managed Services (around 24%)

So while AI is getting the most attention, it’s part of a broader mix.

The Operational Bottleneck: Talent and Execution

If there’s a consistent constraint across MSPs, it’s not demand. It’s capacity.

Around 1 in 5 MSPs say talent shortages are a major inhibitor.

At the same time, the skill requirements are increasing in two ways:

1. More depth in specialized areas.
2. More breadth across functions.

This is where discipline shows up again, in how MSPs hire, train, and use partners.

Vendor Strategy Is Getting Tighter

Another noticeable shift is in how MSPs are managing vendors.

Most are working with fewer vendors, typically between one and nine, and satisfaction is actually improving as portfolios shrink.

It’s less about having more tools and more about having the right ones that align with how the business runs.

Final Takeaway: Discipline Is the Differentiator

If I had to sum up the session, it comes down to this: AI may be the catalyst, but execution is what actually separates MSPs.

The companies that are pulling ahead are the ones that:

• Move beyond experimentation.
• Build AI into their operations.
• Stay disciplined financially and operationally.
• Make intentional decisions instead of reacting.

Right now, most MSPs are still in that middle ground.

If you want to read the source of a lot of this information, you can preview the GTIA State of Industry 2025 report here, and download the full report if you’re a member.

Closing Thought

The channel isn’t being disrupted so much as it’s being reshaped by increasing complexity.

For MSPs that can manage that complexity well, there’s a real opportunity here.