MSPs are at a crossroads. The threat environment is expanding and accelerating, from new types of malware to rampant domain weaponization. Meanwhile, AI offers unprecedented opportunities that are transforming the MSP landscape, from automated chatbots and custom workflows to new enhanced business models.
The reality is that MSPs that embrace both innovation and resilience will remain indispensable. Those that hesitate risk being disrupted by both adversaries and competitors. The key is smart, sensible adoption in a meaningful way.
Rising Demand Amid Skyrocketing Cybersecurity Concerns
According to a Sophos report from 2024, 39% of MSPs surveyed said their biggest day-to-day challenge was keeping up with the latest cybersecurity and AI solutions and technologies. The next biggest challenges were hiring new security analysts to keep pace with the latest cyber threats.
There’s no way around it. Cybersecurity threats are accelerating beyond traditional defenses. Ransomware attacks rose 37% compared to last year.
AI is exacerbating these issues by enabling new and faster types of attacks. Domain weaponization is increasing in volume and velocity. Client expectations are rising, too. Demand is up for better security, broader IT support, and AI-enabled solutions.
Meeting the Challenge
MSPs must balance innovation with reliability to retain strategic value. Avoiding disruption or displacement, attackers or even more agile service providers, requires the MSP business model to evolve. MSPs must sell AI automations to their clients.
Of course, the IT channel has always been a frontrunner for automation. For example:
- Enterprising individuals invented the monthly managed service model.
- Then, when virtualization came along, it was possible to split one computer into five to perform distinct functions.
- When cloud services entered the scene, customers didn’t have to host the server or the computer anymore. Amazon, Azure, or Google assumed that task.
- Then came the big cybersecurity wave, which MSPs have been riding for the last decade.
Now, the new big sales bucket is AI services.
Of course, MSPs can’t abandon their existing offerings. Cybersecurity and cloud services are still essential, so this new capability must be added, not substituted. The upside is that it creates a strong revenue opportunity while keeping the MSP brand consistent with customers.
Becoming an AI-enabled MSP
Integrating AI is no longer optional. It’s becoming a must-have, if MSPs hope to compete. They must adopt AI-driven solutions or platforms that scale security operations via machine learning models.
Attackers are employing generative AI to automate attacks, create better scams, and skirt standard security layers. Out of necessity, MSPs are adopting AI/machine learning (ML)-based tools for anomaly and threat detection, as well as behavior analysis.
Using AI-based solutions at the DNS layer, especially solutions built on ML models, empowers MSPs to filter content at scale with speed and precision. Such solutions assess DNS queries as they happen. They learn from billions of data points to spot and stop deceptive, malicious or policy-violating domains before a connection can be established.
DNS filtering powered by AI isn’t like static blocklists. Instead, it constantly evolves. It can find threats like botnet domains, phishing, and malware.
Mikey Pruitt
Such intelligence is essential to MSPs that manage multiple client environments. This intel strengthens protection in hybrid and remote networks, reduces manual overhead, and proactively reduces threats without needing full endpoint access.
A Tailored Approach Bypasses the Hype
Break the doubt by talking openly with customers about the AI benefits they need. This will help tailor your offerings to what customers need, rather than getting caught up in hype or ideas of what you “should” offer.
Customers rarely walk in saying, “I need an AI agent.” But they will absolutely describe:
- Manual data pulling from multiple systems
- Emails that feel repetitive
- Missed leads after hours
- Reporting processes that “We’ve always done this way”
Those are your AI use cases, even if the customer doesn’t recognize them yet. Then, build AI solutions tailored to each client rather than choosing a one-size-fits-all model.
It’s also imperative to stay curious. AI is evolving too quickly for a set-it-and-forget-it approach. You don’t need to master every tool. Just keep learning what’s possible, what’s risky, and where AI can meaningfully improve how your customers work.
Positioning for What’s Ahead in the Channel
It’s decision time for MSPs: embrace AI or eat the dust of competitors who already did.
The opportunities are massive. Adopting AI is not simply good for optimization and efficiency but also as part of a revenue opportunity at the defense layer. MSPs that adopt AI will become indispensable and resilient partners to their clients.
AI may seem like yet another offering to juggle, but it is transformative. It offers services to MSPs’ clients that are both internal and external value-add.
Use these tips to create a business that can meet today’s as well as tomorrow’s challenges. This way, you enable your business to rise to the top within this changing environment.
Mikey Pruitt is global partner evangelist for DNSFilter.
Featured image: Chanchai — stock.adobe.com
