Business of Tech: Daily 10-Minute IT Services Insights

AI for MSPs: Navigating Governance, Quality Control, and New Procurement Guidelines

Dec 16, 2025

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Analyst firm Forrester has projected that AI-native cloud solutions could generate $20 billion in revenue by 2026, significantly reshaping enterprise IT operations. However, the transition to these solutions raises concerns about governance gaps that could lead to outages. Organizations are increasingly redesigning their systems across various sectors, including education and infrastructure financing, to manage the risks associated with AI. This shift is underscored by a recent Gallup poll indicating that 45% of U.S. employees are using AI at work, reflecting a growing reliance on AI tools for operational efficiency.

The term "SLOP" has been designated as Merriam-Webster's 2025 Word of the Year, highlighting the cultural implications of AI's integration into daily communication. This term encapsulates the challenges of quality control in AI outputs, as the rapid scaling of AI tools often outpaces human judgment. Managed Service Providers (MSPs) are urged to focus on helping clients discern which AI outputs are reliable and which require scrutiny, emphasizing the need for quality control over mere automation.

In the education sector, a notable trend is the adoption of oral exams to assess student learning, ensuring evaluations reflect genuine understanding rather than reliance on AI-generated content. Additionally, major tech companies like Microsoft and Google are adopting innovative financing strategies, such as short-term leasing agreements for computing power, to mitigate financial risks associated with AI infrastructure investments. These strategies allow companies to scale their AI capabilities while maintaining flexibility in their financial commitments.

For MSPs and IT service leaders, the evolving landscape of AI presents both challenges and opportunities. The emphasis on governance and quality control in AI tools indicates a shift in how organizations will approach AI adoption, necessitating new validation steps and risk models. MSPs can leverage this moment by providing guidance on AI evaluation and compliance, ensuring that clients can navigate the complexities of AI integration while minimizing potential liabilities.

Four things to know today

00:00 AI Adoption Surges as Forrester, Gallup, and Merriam-Webster Signal a Quality Problem

04:40 -Education and Big Tech Respond to AI by Reworking Assessment and Risk Models

07:13 OMB Uses Procurement Power to Set Federal Standards for Truthful, Unbiased AI Tools

09:11 Disney Sets AI Rules:

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