Core Insights - The demand for AI is significantly increasing among managed service providers (MSPs), but their preparedness to meet this demand is declining, creating a gap that needs to be addressed [2][4][8] Group 1: AI Demand and MSP Readiness - 92% of MSPs report business growth driven by AI interest, with 96% expecting this trend to continue [2][8] - Only about 50% of MSPs feel prepared to assist small and mid-sized businesses (SMBs) in adopting AI tools, a decrease from 90% in the previous year [2][8] - Less than half of MSPs have developed or deployed AI cybersecurity agents for SMB customers [8] Group 2: Internal Use of AI - 67% of MSPs utilize AI for customer support, 66% for technical support/ticket triage, and 58% for threat detection and response [8] Group 3: Customer Preferences and Challenges - AI expertise is now the third most important attribute for MSPs, following threat prevention and 24/7 support [8] - The percentage of customers citing cost savings as a primary challenge has decreased from 28% in 2023 to 17% in 2025 [8] - 71% of SMBs prefer bundled security packages that include prevention, detection, and response services [8] Group 4: MSP Service Expansion - 95% of MSPs plan to expand their managed service offerings in the next year, with 57% actively developing new services [8] - Key priorities for new services include integration across tools (38%), high attach-rate with core services (18%), and broad applicability across SMB verticals (16%) [8] Group 5: Customer Acquisition Strategies - Referrals are the leading source of new SMB customers at 32%, followed by online search and digital ads at 29%, and technology marketplaces at 25% [8]