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AI dominating the channel agenda
Report has underlined the sense that artificial intelligence tools and services will have a significant impact on partner revenues
Artificial intelligence (AI) is being seen as a significant revenue opportunity by the channel, but the vast majority are yet to fully integrate the technology into their own operations.
Those thoughts around AI were the headline finding from the Global Technology Industry Association’s (GTIA’s) State of the channel 2026 report for the UK and Ireland.
The report was dominated by attitudes towards AI, with 35% of UK and Ireland IT service providers (ITSPs) already generating between 11-25% of their revenues from services that were a mix of fresh and existing AI products and services. A small proportion (7%) indicated that half of their revenues now came from this area.
Despite that, only a third of those service providers quizzed had integrated AI into their own business models, which could be a challenge given that most customers want to see evidence of the medicine being taken by their supplier.
“AI hype is fast turning into AI reality, making this a crucial time for providers who must make important decisions about their business strategy,” said Carolyn April, vice-president of research and market intelligence at GTIA. “We are well past the experimentation phase. The key differentiator now is how strategically and operationally mature a provider’s AI usage is. Those who can successfully adopt and monetise AI will be best placed to navigate this sea change.”
The report uncovered a sense of resiliency across the channel, with two-thirds on track to hit their goals for this year, and those that have embraced AI in a stronger position.
The number of channel players expecting to hit their goals for this year was seen by the GTIA as an indication that many had set conservative goals for 2026 as a result of the ongoing macroeconomic challenges. The number of firms that are struggling has diminished, but so has the portion of those outpacing the market.
The key channel drivers
- According to UK&I partners, there are several factors contributing to the fortunes of partners.
- Top of the list was the growing complexity of technology causing users to turn to partners.
- Other factors included being able to assist users with compliance regulations, as well as using AI internally to improve efficiencies.
The expectation is that the revenues coming from selling and supporting AI will increase substantially over the next few years, and drive ever-larger portions of channel revenues.
“Most ITSPs continue to prioritise classic infrastructure-centric services, but growth expectations are increasingly concentrated in newer, higher-value offerings,” said April. “The gap between what ITSPs sell now and where they expect growth highlights the opportunity – but also the need for new skills, pricing and delivery models as AI shifts to business-imperative.”
Along with the focus on AI, the State of the channel report also uncovered a growing demand for partners as customers struggled with increasing complexity. Security is a continuing source of revenue, and is also expected to increase in the next couple of years.
The problems with bringing on-board skilled staff remained at the top, with fears also around customer budgets tightening and competition from online marketplaces increasing.
