Business of Tech: Daily 10-Minute IT Services Insights MSP Automation Strategies: How to Scale Without Relying on Human Labor in 2026
The episode reviews the outcomes of predictions made for 2025, highlighting the evolving role of automation and AI in Managed Service Providers (MSPs). Key findings indicate that while generative AI has improved data accessibility, it has not fully resolved existing reporting issues related to data quality and governance. Additionally, the anticipated widespread adoption of autonomous IT systems among small and medium-sized businesses (SMBs) has not materialized, as many still rely on traditional remote monitoring and management (RMM) tools. The episode emphasizes that AI governance and advisory services have become central to modern MSP offerings.
Further analysis reveals that while AI-driven legal services gained traction, MSPs have not widely adopted these as packaged offerings. Instead, they have focused on AI compliance and regulatory advisory services. The discussion also touches on the mixed results of fraud prevention becoming a standard service, with significant growth in some sectors but uneven adoption across the board. The episode concludes with a scorecard of predictions, noting a few clear successes in AI governance and readiness consulting, while highlighting a notable miss regarding decentralized MSP models.
Looking ahead to 2026, the episode presents several predictions that reflect the increasing importance of automation in IT services. It suggests that MSPs whose revenue models still depend heavily on human labor will face pressure to adapt, as automation becomes the primary driver of service scalability. The discussion also raises concerns about accountability in automation, predicting that individuals may be held responsible for failures in automated systems, emphasizing the need for robust governance frameworks.
The implications for MSPs and IT service leaders are significant. As automation becomes the production system for IT services, providers must focus on governance, risk management, and advisory roles to differentiate themselves in a competitive landscape. The episode underscores the necessity for MSPs to evolve their service offerings and business models to align with these trends, ensuring they remain relevant and capable of delivering value in an increasingly automated environment.
💼 All Our Sponsors
Support the vendors who support the show:
👉 https://businessof.tech/sponsors/
🚀 Join Business of Tech Plus
Get exclusive access to investigative reports, vendor analysis, leadership briefings, and more.
👉 https://businessof.tech/plus
🎧 Subscribe to the Business of Tech
Want the show on your favorite podcast app or prefer the written versions of each story?
📲 https://www.businessof.tech/subscribe
📰 Story Links & Sources
Looking for the links from today’s stories?
Every episode script — with full source links — is posted at:
🎙 Want to Be a Guest?
Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:
💬 https://www.podmatch.com/hostdetailpreview/businessoftech
🔗 Follow Business of Tech
LinkedIn: https://www.linkedin.com/company/28908079
YouTube: https://youtube.com/mspradio
Bluesky: https://bsky.app/profile/businessof.tech
Instagram: https://www.instagram.com/mspradio
TikTok: https://www.tiktok.com/@businessoftech
Facebook: https://www.facebook.com/mspradionews
Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.