Small and medium-sized businesses (SMBs) are increasingly recognizing the importance of adopting artificial intelligence (AI) to stay competitive in the market. A recent survey indicates that 97% of small businesses utilizing voice AI agents have seen revenue increases. However, many SMBs still perceive AI as complicated or unnecessary, with 63% expressing concerns about their foundational capabilities to support AI initiatives. Despite these hesitations, research shows that 91% of SMBs that have integrated AI report revenue gains, highlighting a significant opportunity for those willing to embrace the technology.

The demand for AI expertise is surging, with a notable shortage of talent in the IT sector. Over half of IT leaders report facing an undersupply of AI skills, a figure that has increased from 28% in previous years. While 90% of organizations are piloting or investing in AI initiatives, more than two-thirds of leaders have yet to see measurable returns on their investments. This skills gap emphasizes the need for IT service providers to step in as guides, helping SMBs navigate the complexities of AI adoption and implementation.

Cloud spending has also surged, reaching $90.9 billion in the first quarter of 2025, driven by the need to optimize cloud infrastructure for AI applications. Major cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud dominate the market, but the increasing complexity of cloud computing necessitates external expertise. IT service providers have a unique opportunity to position themselves as AI infrastructure enablers, focusing on simplifying hybrid cloud management and aligning cloud strategies with business objectives, particularly in relation to AI.

Recent studies, including one from the University of Oxford, highlight the limitations of large language models (LLMs) in real-world applications, particularly in critical sectors like healthcare. While LLMs may perform well in controlled environments, their effectiveness diminishes when humans interact with them. This underscores the importance of designing AI systems that prioritize human outcomes over mere model accuracy. As companies like Zoom, MailChimp, and Microsoft launch new AI tools, the focus for IT service providers should shift from merely selling AI tools to ensuring responsible and effective deployment that delivers measurable value.

Four things to know today

00:00 SMBs See AI as Key to Growth but Struggle With Skills and Strategy, Opening Door for IT Service Providers

04:53 AI Boom Fuels 21% Surge in Global Cloud Spend, Forcing Providers to Tackle Hybrid Complexity and Cost Pressures

07:38 AI Can Diagnose—But Can People Use It? Oxford Study Undermines LLM Utility in Critical Settings

10:11 Mailchimp, and Microsoft Launch Next-Gen Tools Aiming for the Customer Experience

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