COMMENTARY: Artificial intelligence (AI) adoption among small and medium-sized businesses (SMBs) is growing, with roughly 75% of these organizations leveraging AI for tasks ranging from customer service automation to data analysis. However, SMBs face several challenges when implementing AI, such as limited in-house expertise, insufficient employee training and lack of cloud infrastructure to support AI solutions.
To address these shortcomings, more and more SMBs are turning to managed service providers (MSPs) to help them bridge gaps in technical expertise, infrastructure and employee readiness. Acting as outsourced IT departments, MSPS can step in as trusted guides, helping businesses navigate AI adoption.
Challenges of AI Implementation
SMBs face several challenges when it comes to adopting AI technology. According to research by Business.com, only 52% of SMBs using AI are investing in training their workforce and more than half of employees feel unprepared to fully harness the technology. In fact, just 37% of SMB employees express confidence in their AI skills. While SMB leaders recognize the importance of adopting AI to stay competitive, more than 60% admit their organizations lack a clear vision and plan for implementing AI effectively.
A lack of training, combined with limited understanding of how to utilize AI, can hinder its successful integration into business operations. Budget constraints can further complicate AI adoption. In addition, many SMBs rely on legacy systems, which can lack the capacity to support AI.
MSPs as Strategic Partners
With the use of AI among SMBs more than doubling since 2023, MSPs can help businesses identify suitable AI applications for SMBs and provide ongoing support and maintenance to keep digital solutions current. By collaborating with service providers, SMBs can leverage advanced AI technologies without the need for significant in-house resources. MSPs can oversee the technical infrastructure, including cloud services and data management, and help with security and compliance.
1. Demystifying AI application:
MSPs can guide businesses by encouraging a "think big, start small" approach. Rather than overwhelming SMBs with large-scale AI implementations, MSPs can focus on delivering manageable, tangible projects that showcase AI's benefits in real-world applications. By starting with small-scale projects, businesses can see the practical impact of AI without committing extensive resources upfront. These early successes build confidence among stakeholders and employees.
2. Start with education and exploration:
The AI journey should begin by assessing the organization’s current operations and identifying areas where AI could make an impact. By conducting a thorough audit of an SMB’s AI readiness, MSPs can help SMBs grasp the "art of the possible," grounding the conversation in achievable, relevant AI use cases.
3. Small wins in action:
MSPs can help SMBs see immediate value by introducing AI in productivity-boosting areas. Some simple yet high-impact applications of AI include the production of meeting summaries, email automation, or basic content generation for social media or sales tools. By leveraging generative AI to draft content—always guided and validated by human oversight—SMBs can reclaim valuable hours. Such productivity gains may seem minor, but over time, MSPs can help businesses build momentum for further AI adoption.
Finding a Niche
So, how can an MSP get started in AI?
One option is to adopt a vertically-focused approach, becoming an expert in specific industries and delivering tailored solutions for those businesses. For example, in the manufacturing sector, organizations can use predictive analytics to help manufacturers prevent costly equipment failures. By analyzing data patterns specific to the machinery used in production, they can implement AI-driven solutions that predict when equipment might fail. This proactive approach to maintenance reduces downtime and increases operational efficiency, delivering immediate value to manufacturers.
Fashion is another vertical where AI is making a difference. Here, generative AI tools are helping enhance creative ideation, with AI solutions assisting designers by generating new fabric patterns and other design ideas. With AI, designers can explore more possibilities in less time.
Whether through increased operational efficiency or enhanced creativity, MSPs can help their partners identify specific vertical use cases for AI adoption. If SMBs get bogged down in trying to land a large-scale AI project, they risk being outpaced by competitors who are capitalizing on the quick wins.
Ask the Experts
Finding ways to best utilize technology to unlock positive business outcomes is embedded in the DNA of managed service providers. For most SMBs, a high level of technological expertise is not their core business, so turning to the experts – MSPs – can drive real results.
Through a strategic approach that focuses on impactful, small wins and industry-specific applications, MSPs can help businesses achieve immediate value while laying the foundation for long-term success.
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