AI and Data are reshaping the MSP landscape, but hackers are getting in on the hot AI action

The IT channel has spent the last year riding the unpredictable wave of artificial intelligence hype. But according to Dermot McCann, EVP and GM, EMEA and APAC of Kaseya, the industry is now firmly crossing the threshold from speculation into a living, breathing reality.

Speaking to a room of managed service providers (MSPs) and channel partners at Kaseya's Local Connect event in the London Docklands Museum on Tuesday, McCann delivered a keynote that looked past the daily grind of ticketing and patch management. Urging the channel to prepare for a profound shift driven by AI, data unification, and evolving customer demands.

While acknowledging the vital importance of day-to-day operational quality, McCann spent much of his address focusing on what will dictate the future survival and profitability of the MSP business model.

Evolving business models picture the MSP as an AI consultant

The traditional role of the MSP is fracturing and expanding. According to McCann, the conversations channel partners are having with their end-users have fundamentally changed.

"Nine out of ten of the customer conversations I'm having at the moment are about your end customers asking you for your opinion on AI," McCann noted. "How are you going to deliver AI to the services?"

This shifting dynamic presents both a challenge and an opportunity. McCann pointed out that many partners are pivoting heavily into professional and consulting services to meet this demand for AI guidance. However, he warned against abandoning the foundational recurring revenue model. The true opportunity, he argued, lies in leveraging AI internally to expand margins, eliminate "day-to-day friction," and deliver consulting services without losing sight of the core managed services that differentiate an MSP's business.

Fighting fire with fire

With innovation comes immense risk. McCann was frank about the dark side of the AI revolution, noting that the threat landscape is currently a "hacker's dream."

"We know that AI is perpetrating significant threats and significant attacks on our partners," McCann explained, highlighting the dramatic increase in automated brute-force attacks. To combat this, the channel must fundamentally change its defensive posture. "We're having to fight fire with fire."

However, McCann cautioned MSPs against hastily bolting AI capabilities onto their existing tech stacks or trying to build homegrown AI tools without the proper foundation. The biggest risk in the AI era isn't a lack of innovation, it's a lack of compliance.

"Unless you've got the security posture in place to support it, it comes with a lot of risk," McCann warned. He stressed that any AI integration must be underpinned by rigorous security and compliance frameworks, such as SOC 2, GDPR, and PCI compliance, noting that playing fast and loose with AI data "scares the living hell out of me."

The power of the connected data layer

So, how do MSPs safely harness this technology to automate at scale? For McCann, the answer lies not in isolated niche products, but in a holistic, API-first ecosystem.

Kaseya's overarching philosophy for the future relies on a "connected data layer." By moving away from fragmented, multi-vendor environments and embracing a unified platform, the channel can tap into an unprecedented wealth of anonymized telemetry.

"If you can measure that data that you have, then you can manage it," McCann explained. "Once you can manage it, then you can make decisions on it, and that decision is made through an automation. And that's really the final piece of how we think about this AI during the future."

This interconnectedness is what will allow MSPs to move from reactive break-fix cycles to proactive, automated service delivery. When an RMM, documentation tool, and cybersecurity suite share a single brain, the economies of scale multiply.

An aggressive but secure adaptation to AI for MSPs

Ultimately, McCann's message to the channel was one of aggressive, yet secure, adaptation. The AI revolution is no longer a buzzword reserved for future-facing whitepapers; it is an everyday reality dictating the pace of the market.

For MSPs willing to embrace a unified platform approach, prioritize robust security compliance, and step into the role of AI consultants for their clients, the future could be a bright one.