AI emerging as top growth driver for UK&I channel partners

AI is rapidly becoming the channel’s primary growth opportunity, although many IT service providers are still early in their adoption journey.

That’s according to GTIA’s 2026 State of the Channel report, which found that while AI services were identified as the top expected revenue growth category over the next two years, only three-in-ten providers have fully embedded the technology into their business models.

According to the report, 35% of participants currently generate between 11% and 25% of their revenue from AI-related services, with many providers selling a mix of existing and newly developed AI offerings.

In contrast, just 7% said that more than half of their revenue now comes from AI-related products and services.

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Commenting on the findings, GTIA said the channel finds itself at an “AI inflection point” as providers increasingly move beyond experimentation and begin operationalizing AI-focused strategies.

“AI hype is fast turning into AI reality, making this a crucial time for providers who must make important decisions about their business strategy,” explained Carolyn April, vice president of research and market intelligence at GTIA. “We are well past the experimentation phase.

“The key differentiator now is how strategically and operationally mature a provider’s AI usage is. Those who can successfully adopt and monetize AI will be best placed to navigate this sea change.”

AI-driven growth expectations

GTIA’s study found that 42% of ITSPs expect AI services to be the biggest revenue growth category over the next 24 months, placing just ahead of cyber security services at 37%.

Meanwhile, 31% of respondents said they are expecting significant growth in AI-related revenue during that period – particularly for those evolving their offerings, as well as investing in new skills and vendor relationships.

GTIA also found that 30% of providers already identify as “AI-driven” companies with formal AI leadership and operational strategies already in place, while 43% said they are “AI-invested” as they continue their transformation.

“Most ITSPs continue to prioritise classic infrastructure‑centric services, but growth expectations are increasingly concentrated in newer, higher‑value offerings,” April continued.

“The gap between what ITSPs sell now and where they expect growth highlights the opportunity—but also the need for new skills, pricing and delivery models as AI shifts to business imperative.”

Ongoing channel challenges

Despite the growing optimism around AI-led services, GTIA’s report also highlighted the key challenges that continue to face the channel.

More than a third (37%) of survey participants cited workforce skills and talent shortages as the biggest barrier to their success, while 34% pointed to external market factors.

Additionally, 16% said they are concerned about the availability and adoption of AI solutions, underlining AI’s current presence as both a growth catalyst and an emerging disruption risk.

Elsewhere, the research also revealed that hybrid business models continue to dominate the ITSP landscape, with the majority of providers still combining managed services, project work, and product sales as part of their diversification and risk management strategies.

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