AI didn’t knock; it let itself in. And if you think your clients are still waiting for you to figure it out, think again. That was the core message of Auvik’s John Harden during his presentation on generative AI (GenAI) and shadow IT at GTIA’s ChannelCon 2025.
The director of strategy and technology evangelism for Auvik headlined the presentation Next Wave of MSP Threats & Opportunities with Shadow IT & GenAI on July 29. In the session, he emphasized that MSPs must quickly catch up to their clients’ AI adoption habits. Also, it’s an MSP’s responsibility to guide them forward.
“Normally technology starts [with] the government, goes to corporations, then makes its way [to consumers],” said Harden, speaking to ChannelPro after his ChannelCon session. “AI flipped [that] on its hat. We started as consumers … and then it snuck into business. And the minute it stopped becoming a toy and started being something that we run our businesses [on] is when it became the MSP’s problem.”
5 Takeaways on AI, Shadow IT, and What MSPs Must Do Now
In a follow-up conversation with ChannelPro, Harden broke down the urgent lessons MSPs need to absorb and act on as GenAI tools spread across client environments. Here’s what he wants providers to know.
1. Your Clients Already Use AI Even If They Don’t Know It
New data from Auvik showed that 95% of businesses with more than 10 to 25 employees have adopted multiple AI tools, Harden said. Many of those tools are unsanctioned and flying under the radar.
“Whether it’s Perplexity, Copilot, or ChatGPT, these tools are already embedded across departments,” he emphasized. “Knowing where they are and what they’re using is half the battle.”
John Harden’s solo presentation drew a full room at ChannelCon 2025.
2. Internal Adoption Must Come First
Before MSPs can offer AI-related services, they need to operationalize it within their businesses. Otherwise, Harden said, they’re doing a disservice to their clients.
“Imagine if you went to a car dealership, a salesperson tried to sell you a car and, when you asked him how it drove, he told you, ‘I’ve never driven a car in my life,’” Harden illustrated. “That’s how you would be if you were an MSP that never used AI in their business but decided to go deliver it to customers.”
3. Start with Discovery, Lead with Empathy
MSPs should begin by scanning clients’ environments to uncover what AI tools are in use. Tools like the Auvik SaaS Management feature can assist with that discovery, but the approach matters just as much as the data.
“When the execs say, ‘We know what’s going on,’ and, ‘Maybe we’re not using it,’ [MSPs] can show the customer and say, ‘I just want to let you know that marketing is using it over here and here are the pros and cons,’” Harden explained. “Our technologies are giving MSPs the data to break the ice.”
4. Don’t Rush to Monetize What You Don’t Understand
The pressure to package and sell AI services is real, but Harden warned against that temptation without internal readiness.
“There’s a wave where MSPs are trying to rush to monetize it with their customers first,” he said. “But if they haven’t mastered AI internally, they are really doing a disservice to their customers.”
His advice: Take a quarter or even two to get your own house in order before launching AI services externally.
John Harden
5. AI Isn’t Just a Tech Problem, It’s a Business One
MSPs should not approach AI as just another technical offering. Rather, it is a business transformation conversation. The shift to AI represents the next major evolution of the managed services model.
“This is a business problem, not really a technology problem, to be honest,” Harden said. “You need to be a trusted advisor and not just somebody selling technology.”
Where MSPs Go from Here
As AI embeds itself into everyday business operations, MSPs have a narrow window to lead or risk playing catch-up. Instead of fearing the evolution, Harden recommends MSPs look at it as a promising upgrade for their businesses and the channel overall — as he does.
“I’m super excited just to be part of the era that moves us from MSP to fill in the acronym. I just want to be part of the community that’s at the beginning.”
The message is clear: Embrace AI internally, engage clients with empathy, and evolve from service provider to strategic advisor before someone else does.
Anjali Fluker is senior channel editor for The ChannelPro Network, where she covers news, trends, and best practices for the MSP community. She specializes in telling the stories that matter to IT providers serving the SMB market. When she’s not reporting on the latest in managed services, she’s connecting with channel pros at industry events across the country.
Images: John Harden, Auvik
