One of the key findings we shared last quarter from The Evolving Landscape of the MSP Business Report 2024 was that nearly 9 in 10 of the MSPs surveyed said they need significant or notable improvements in their knowledge and application of AI products and services. In addition, 77% of MSPs feel under pressure to offer customers AI insight and tools. To help us delve deeper into this topic, we contacted The ASCII Group. Five members shared their insights.
Why do only a small percentage of MSPs say they’re effectively using AI?
“AI introduces new security and privacy considerations, requiring specialized skills that my team is working diligently to acquire,” says Mat Kordell, Chief Operating Officer at CyberStreams. “Plus, not all AI vendors offer mature, reliable solutions.”
“Many MSPs are still exploring how to integrate AI into their services meaningfully,” says Paul Nebb, Founder and CEO of Titan Technologies. “There’s a learning curve, and for some, the tools aren’t yet user-friendly or proven enough in real-world IT environments.”
Jeff Brodie, President of Codefusion Communications, concurs, adding, “Effective AI implementation requires significant time and experimentation to identify useful applications and proper implementation methods. Additionally, messy data sources and the complexity of integrating various AI tools, including multiple licenses to deploy Copilot within Microsoft 365 (M365), create confusion and hinder clear paths to success. Privacy and security concerns add another layer of complexity, necessitating robust AI policies, data loss prevention (DLP) and extensive training. This substantial time commitment and the need for extra licensing further complicate the adoption process.”
Rafael Hamoy, Founder and CEO of H2Webs, says, “It can also be costly to implement, and there’s often a learning curve in figuring out how to make it work effectively. There are concerns around data security, especially in our industry where protecting client information is a top priority.”
“Many MSPs jump straight into automation without first understanding the processes they need to improve,” says Angel Rojas, Jr., President and CEO of DataCorps Technology Solutions. “AI and automation are powerful tools, but they work best when applied to optimized processes.
Without this foundation, you’re only going to see marginal gains. The key is strategically aligning with your clients, understanding their business operations, and then identifying where AI can act as a force multiplier. By fine-tuning the processes first, you ensure that AI isn’t just an enhancement but a true growth catalyst for your clients and your MSP.”
How can MSPs convince customers that paid AI services like Microsoft Copilot are better for their business than free services like ChatGPT?
“Copilot exists within Microsoft 365’s security model, which assures data protection and regulatory compliance,” says CyberStreams’ Kordell. “Plus, it’s integrated into the tools we already use and, at its price point, only needs to save less than 1 hour per user per month in efficiency gains to drive a material ROI.”
Titan Technologies’ Nebb concurs, adding, “Copilot’s features ensure data privacy, seamless collaboration across platforms, and specialized assistance that free tools simply can’t provide.”
“Information leakage is a significant risk with public large language models (LLMs),” says Codefusion Communications’ Brodie. “Microsoft Copilot for business protects your data by preventing leakage, allowing you to train the model within your organization’s context. This ensures it learns your preferences while safeguarding sensitive information. MSPs can implement additional safeguards, like data loss prevention (DLP) products (e.g., Purview) to prevent oversharing and enhance security.”
“At H2Webs, we explain to customers that these paid services aren’t just more powerful, but they offer better integration with your existing tools, stronger security to keep your data safe, and dedicated support when needed,” says Hamoy. “Plus, they’re designed to grow with your business, making them a much smarter investment in the long run. It’s all about getting real value, not just what’s free and easy.”
“Paid solutions like Microsoft Copilot also bring in the power of context and customization,” adds DataCorps Technology Solutions’ Rojas, Jr. “They integrate seamlessly with existing business processes and data, allowing for a more tailored and impactful application. It’s like comparing a custom-built solution to an off-the-shelf product. For serious business applications, you want the one that fits your customers’ unique needs and can adapt to them.”
What complementary services can MSPs add to the sale to increase the value and differentiate themselves in the market?
“Selling a Microsoft Copilot license without comprehensive support can lead to ineffective use and data oversharing,” says Brodie. “MSPs must guide businesses in properly setting up Copilot, emphasizing robust data management and collaboration policies. Utilizing Copilot Studio and Purview effectively reduces risks and maximizes outcomes. Clear guidance on licensing and staying updated with Copilot’s evolving features is essential for optimizing its potential and ensuring data security.”
“MSPs can also offer tailored training on how to use AI tools, integration services to ensure Copilot works within the customer’s existing tech stack, and ongoing AI optimization to ensure clients get maximum value over time,” says Nebb.
“MSPs can add real value to a Microsoft Copilot subscription by offering extra services like hands-on training, ongoing support, and monitoring to ensure everything’s running smoothly,” says Hamoy. “They can also help with security to protect sensitive data and set up timesaving automation. These add-ons turn a basic subscription into a full solution, helping MSPs stand out and giving customers a better experience overall.”
“Adding process optimization and continuous improvement services is a natural fit,” says Rojas, Jr. “Start with a deep dive into the client’s business processes to identify bottlenecks and inefficiencies. Then, use AI to automate or streamline those areas. Offer training sessions on effectively using AI tools like Copilot within their workflows and set up regular review meetings to assess the impact and make adjustments. This consultative approach differentiates your service and creates ongoing value, making you a strategic partner rather than just a service provider.”
How are you using AI for your MSP practice, and how is it benefitting your business?
“More than half of our company is actively using Copilot within Microsoft apps to increase our efficiency and quality of work and communications,” says Kordell. “We use sentiment analysis, which constantly reviews our tickets and provides an early warning of potential client satisfaction concerns.”
“We’ve been using AI models like Copilot to speed up time-consuming tasks and improve efficiency,” says Brodie. “I use it to summarize meetings and emails, prepare for upcoming discussions, and research relevant information quickly. It also helps with meeting recaps and tracking action items for accountability. Although we’re early in AI adoption, our 20-month experience reveals both risks and rewards, and we’re focused on maximizing benefits while minimizing risks.”
“We’re using AI for predictive maintenance, automating routine tasks, and improving cybersecurity threat detection,” says Nebb. “This allows us to proactively address issues, enhance service quality, and focus on strategic initiatives for our clients. We’re also using AI tools to help us generate marketing content.”
“We’re using AI to make our MSP practice run smoother and more efficiently,” says Hamoy. “AI helps us automate tasks like ticket assignments and troubleshooting to respond to clients faster. It also helps us spot patterns in the data, allowing us to fix potential problems before they even pop up. The real benefit is that it frees our team to focus on more important, complex issues. This allows us to deliver better service and keep things running smoothly for our clients. It’s helped boost productivity across the board.”
“We’re leveraging AI for data analysis and automating creative tasks, which frees up time for more strategic initiatives,” says Rojas, Jr. “For example, we helped a client scale a labor-intensive process using advanced image processing. This allowed them to meet the demands of Fortune 500 and 100 companies, significantly expanding their market reach. AI isn’t just about doing things faster – it’s about improving things, opening up new opportunities for growth and innovation.”
Real-World Applications and Benefits
MSPs already leverage AI to streamline tasks, improve efficiency, and enhance service quality. AI is a valuable tool for MSPs, from automating routine tasks to predicting maintenance issues and enhancing cybersecurity.
As AI continues to evolve, MSPs that successfully navigate the challenges and harness its potential will be well-positioned to thrive in the competitive landscape. By understanding the benefits and limitations of AI and offering comprehensive solutions that address client needs, MSPs can unlock the true value of this transformative technology.
About The ASCII Group, Inc.
The ASCII Group is the premier community of North American MSPs, MSSPs and Solution Providers. The Group has members throughout the U.S. and Canada, and membership encompasses everyone from credentialed MSPs serving the SMB community to multi-location solution providers with a national and international reach. Founded in 1984, ASCII provides services to members, including leveraged purchasing programs, education and training, marketing assistance, extensive peer interaction and more. ASCII works with a vibrant ecosystem of leading and major technology vendors that complement the ASCII community and support the mission of helping MSPs grow their businesses. For more information, please visit www.ascii.com.
