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MSPs using AI to improve customer service

Research from POPX reveals widespread channel adoption of artificial intelligence to improve operations and security

As the last few days of 2025 come into view, thoughts are naturally turning to what next year will hold for the channel – and there is no better way to find out than by asking those working in it.

That was the purpose of POPX’s State of the MSP industry report, which took the pulse of the managed service provider (MSP) community.

What is clear is the adoption of artificial intelligence (AI) to increase productivity, as well as the pressure on MSPs to be in a position to provide support around the technology for their customers.

As part of the survey of 250 MSP leaders, MicroScope was able to ask a few specific questions to get a sense of how the landscape is looking. As well as sharing the responses to those questions, Andy Venables, CEO at MSP platform player POPX, shared his views on the results.

What impact is AI having on MSPs and their customers?

The technology is everywhere, and the research found that only 1% of organisations were not yet utilising AI or automation tools.

Digging slightly deeper into where MSPs had adopted the technology revealed that 80% were using AI-powered chatbots to improve customer experience and support, allowing their service desk staff to focus on higher-value tasks. That was underlined by the 65% who agreed that time had been freed up by AI.

As MSPs continue to navigate the challenges of AI integration, the focus will remain on leveraging these technologies to deliver superior service and meet evolving client expectations
Andy Venables, POPX

There was also a clear link between AI and operational efficiencies, with 62% of MSPs recording improvements, such as signs of revenue growth from AI-enabled services and higher rates of customer satisfaction, along with cost savings. More than half (51%) of those surveyed were tracking the impact of AI on the business in real time.

When it came to customer satisfaction, 98% of MSPs reported AI having a positive impact, with the technology accelerating response times and improving communication.

It is still early days for many on the AI journey, and challenges for MSPs remain, with high implementation costs and a lack of internal skills impacting around a third of MSPs.

“AI is undeniably transforming the MSP landscape, driving efficiencies and enhancing client satisfaction. As MSPs continue to navigate the challenges of AI integration, the focus will remain on leveraging these technologies to deliver superior service and meet evolving client expectations. The future of MSPs is inextricably linked to their ability to harness the power of AI, promising a new era of innovation and growth in the IT services sector,” said Venables.

What steps are being taken by MSPs to protect their businesses against cyber attacks?

This year has seen a number of high-profile cyber attacks, with consequential damage to the affected businesses and an impact on their supply chains. Given their position as trusted advisers to a wide customer base, MSPs are all too aware of their position as a target for cyber criminals.

The data paints a picture of MSPs as vigilant and proactive entities in the realm of cyber security
Andy Venables, POPX

The survey found that 48% of MSPs have noticed a shift in client expectations around data and security as they expect suppliers to make it a priority.

As a result, many MSPs (80%) are using AI-driven threat detection and cyber security, and the majority are implementing artificial intelligence with security in mind.

Where things became more challenging was around deploying AI confidently across the organisation, because of potential risk, as well as meeting compliance demands.

The POPX survey found that 44% of respondents faced security or compliance challenges when adopting new technologies for customer service. Just shy of half were wrestling with the integration of legacy frameworks that undermined a robust security posture.

“The data paints a picture of MSPs as vigilant and proactive entities in the realm of cyber security. As MSPs continue to navigate and evolve with AI and automation, the security measures they are implementing will undoubtedly play a pivotal role in their ongoing security and the strength of trust by clients. By embracing AI and automation, they are not only enhancing their operational efficiency, but also fortifying their defences against potential threats,” said Venables.

What are MSPs’ plans for the future?

Looking ahead, the drive to continue adopting and integrating AI is set to continue, with 68% of MSPs expecting a business transformation as a result.

A lot of work has already been done, with 82% using chatbots to streamline customer interaction and 16% looking to roll out similar features in the year ahead.

The survey clearly indicates that MSPs are committed to embracing advanced technologies and strategies to enhance their service offerings
Andy Venables, POPX

Elsewhere, the number of MSPs using predictive analytics is rising, with many keen to embrace those technologies in 2026 so they can be proactive in responding to clients and identifying potential problems before they flare up to improve retention rates.

The vast majority of partners are using customer feedback, service level agreements (SLAs) and performance reports to ensure they are meeting, if not exceeding, user expectations. The research indicated that many were moving to use customer relationship management (CRM) integration to deliver more personalised services to build trust further.

Given the ongoing rate of consolidation across the channel, it was no surprise that 12% of MSPs questioned by POPX revealed they were planning an acquisition.

Venables said the findings indicated the move by MSPs to adopt emerging technologies to improve their businesses and increase customer satisfaction.

“The survey clearly indicates that MSPs are committed to embracing advanced technologies and strategies to enhance their service offerings. By focusing on AI, predictive analytics and personalised client interactions, MSPs are well-positioned to meet the evolving needs of their clients and secure their place in the competitive landscape. As these plans come to fruition, clients can expect more efficient, personalised and proactive service from their MSP partners,” he concluded.

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