AI Is Changing The Managed Services Game

MSPs are leveraging AI to radically transform the way they deliver services, the types of services they provide and how they interact with customers.

The infiltration of AI into the managed services space is reshaping the industry, with many MSPs seeing new services opportunities as a result of implementing the technology.

AI also has dramatically altered the types of services MSPs offer, the way they deliver those services and how they interact with customers.

NexusTek, a Greenwood Village, Colo.-based MSP, for example, built its Nexus Tech Secure AI platform to meet the demands of a customer base hungry to experiment with AI. The platform allows businesses to test multiple AI models and select the one that best fits their needs. Instead of locking customers into a single model, the platform offers the flexibility to choose the right tool for the task at hand—whether it’s security, operations or customer service.

“That flexibility has been a game-changer for our customers,” Hamilton Yu, CEO of NexusTek, told CRN.

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Yu sees the incorporation of AI into NexusTek’s services stack as key to its future success.

“The companies that understand and implement GenAI effectively will rise to the top. For those who don’t adapt, it’s going to be a race to the bottom. AI will be the key differentiator between the modern MSPs and the traditional ones.”

NexusTek, an honoree on CRN’s 2025 MSP 500, is also using AI to reshape its own daily operations.

“Everyone in the company is using it to become more efficient, from customer support to operations,” Yu said. “It’s not a silver bullet, but it’s a powerful tool that helps us work smarter.”

NexusTek is far from alone in benefiting from AI.

Recent research from CRN parent The Channel Company shows that the channel is moving to capitalize on AI-based services opportunities. In a survey of approximately 370 solution providers, 48 percent said they currently offer AI consulting services, while 43 percent are offering AI integration services. Thirty-one percent said they offer AI training and education, while 30 percent sell custom AI solutions.

AI’s Competitive Advantages

AI is helping NexusTek keep prices competitive as it improves service delivery, Yu said.

“Our goal as an MSP is to deliver the best service possible at a competitive price,” he said. “AI, particularly GenAI, is helping us achieve that by drastically reducing the time it takes to identify and solve service outages, saving our customers significant money.”

AI is not only streamlining technical operations, it also plays a critical role in improving customer satisfaction by enhancing response times, according to Yu. AI does more than just find the right answer like a simple search engine; it’s a tool that can analyze the specifics of an issue and provide a tailored, effective resolution, he said.

Eric Kaplan, CTO of Ahead, said AI’s capabilities are improving customer satisfaction in the Chicago-based company’s call centers.

“We use AI to monitor call quality and analyze customer sentiment in real time,” he said. “By recording and analyzing conversations, AI helps us understand if our call center operators are maintaining a professional, level-headed approach with clients. It’s a valuable training tool that enables us to provide real-time feedback and improve customer service.”

Ahead, an honoree on CRN’s 2025 MSP 500, is also using generative AI to accelerate on-boarding and professional services engagements.

“We use generative AI to help write code and create detailed stories for both professional and managed services. This reduces the time and resources required for customer ramp-up and streamlines the transition between services,” he said.

Ahead is also harnessing its partnership with ServiceNow and using AI to increase efficiency.

“We’re implementing AI within ServiceNow to enhance the efficiency of operators when they’re transitioning or summarizing cases,” Kaplan said. “The goal is to drive faster resolutions for clients by making our operators more efficient, which in turn improves customer satisfaction.”

Another MSP, Fulcrum IT Partners, has been able to empower its customers by giving them direct access to service data in real time after leveraging AI to automate interactions and offer on-demand insight.

“AI has democratized data for our customers,” Gareth Davies, president of Toronto, Ontario-based Fulcrum, told CRN. “Instead of calling for updates or waiting for reports, customers can interact with the data in a natural way, asking questions about their service and getting answers instantly. This is one of the key areas where AI has significantly improved satisfaction.”

Fulcrum even has a data platform to enhance how the company integrates siloed data across multiple systems. By aggregating and analyzing data, the platform helps to identify patterns and risks for customers that may otherwise be overlooked.

“At Fulcrum, we’re all in on AI,” he said. “It’s a priority across every service area. And while this technology will likely become standard for everyone, we aim to use AI to elevate the level of service we provide. For customers, the ultimate outcome is a service that works better than it did before, whether they recognize the role AI plays in it or not.”

Trace3, also an honoree on CRN’s 2025 MSP 500, is using AI tools with a strong focus on data analytics, process automation and AI-enhanced service management. The company has been able to use AI to streamline operations, improve response times and elevate customer satisfaction to new heights.

“AI is a game-changer when it comes to service delivery,” Mike Bank, vice president of sales, managed services at the Irvine, Calif.-based solution provider, told CRN. “One of the top areas where we’ve seen significant impact is in data analytics and business insight. In the past, gathering data was a manual process, but now with AI we can dive deep into data, sometimes eight to 10 layers deeper, and not only answer the ‘what’ but the crucial ‘why.’ This gives us invaluable insight into trends, helps with problem management and enables quicker, more confident decisions for our customers.”

The integration of AI into its operations has also led to cost savings for Trace3.

“AI helps us reduce the cost of delivering services, and we pass those savings on to our clients,” Bank said. “In turn, customers are increasingly expecting this kind of value from their service providers.”

The role of AI in improving customer satisfaction and response times is also pivotal to Trace3, which uses AI tools to improve overall service.

“The customer experience hinges on how quickly we respond to issues,” Bank said. “AI enables us to detect performance anomalies and system failures even before they escalate, often allowing us to resolve issues without needing expensive higher-level engineers. This not only speeds up our response time but helps us avoid service outages altogether.”

But it goes beyond incident response.

“With AI integrated into our knowledge management systems, engineers can quickly find resolutions based on past incidents,” he said. “This dramatically reduces both resolution time and customer downtime during service interruptions.”

With resources dedicated to AI-focused consulting, research and internal development, Trace3 is expanding its AI expertise to ensure it is meeting current demands but “anticipating future needs.”

“AI isn’t just a tool, it’s part of our long-term strategy to ensure that our clients can make better, data-driven decisions and improve their operational efficiency,” Bank said. “And when pursuing new customers, they frequently ask us how we’ll ensure better performance management. AI plays a significant role in answering that question.”

The AI Security Play

Security is another area where AI is having a profound impact for MSPs. By filtering out irrelevant data, AI helps organizations ensure that potential vulnerabilities are quickly addressed without the distraction of white noise.

Ahead is seeing “significant benefits” from incorporating AI into its Security Operations Center, Kaplan said.

“As part of our managed security service, we handle millions of alerts daily. AI helps us with anomaly detection, allowing operators to find the needle in the haystack and suggest the next steps for resolving vulnerabilities or incidents,” Kaplan said. “In the world of managed security, time is critical, and AI is key to scaling operations and resolving issues swiftly.”

AI is playing a pivotal role in proactively identifying patterns and risks in customer systems. The company’s use of machine learning can detect anomalies in the vast amount of data ingested daily, Kaplan said.

“AI is indispensable when it comes to scaling and analyzing billions of [security] events in real time,” he said. “It helps us identify patterns, predict potential risks and make recommendations to address issues before they escalate.”

The Human Touch

Alongside their exuberance for AI, MSP executives who spoke to CRN acknowledged their AI deployments still require the human touch.

It’s crucial to maintain human oversight, particularly in decision-making processes where judgment is critical, said NexusTech’s Yu.

“While AI has made huge strides, we always ensure there’s a human in the loop to prevent potential errors or hallucinations in the data,” Yu said. “The key is to use AI as a tool to augment human decision-making, not replace it.”

In that way, NexusTek ensures that quality remains a priority, he said.

“We’re very much in control of the AI we use. It’s not autonomous, it’s governed by us,” he said. “We’re using AI in a responsible, deliberate manner to avoid compromising the quality of our services. With AI, we’re able to spot issues before they even happen, preventing them from turning into larger problems.

This predictive approach is a game-changer for us.” Ahead’s Kaplan also confirmed the need for balance between AI-driven automation and human expertise.

“AI is fantastic for identifying trends and patterns, but when it comes to making critical decisions, especially in complex environments, human judgment remains essential,” Kaplan said.

“AI may help operators quickly understand and address issues, but humans provide the broader context, ensuring that actions taken are aligned with the client’s specific needs and the larger enterprise landscape.”

Thrive, an MSP based in Foxborough, Mass., is harnessing AI to transform how managed services handle routine tasks by streamlining operations, detecting issues before they arise and allowing technicians to focus on critical problems rather than getting bogged down by routine maintenance, said CEO Bill McLaughlin. This results in a smoother, quicker customer experience, which leads to higher satisfaction and efficiency, he said.

But those benefits only come through thoughtful implementation, he said.

“You need the right team in place to roll it out and, like any technology, it needs constant attention,” McLaughlin told CRN. “AI runs on data, so organizations need to ensure that the data is clean, secure and maintained.”

While AI has the potential to significantly enhance managed services, success hinges on careful planning, expert implementation and rigorous data hygiene, McLaughlin said.

“There needs to be proper quality control and security around the data you’re working with,” he said. “It’s not just about flipping a switch and turning it on. If not properly vetted, AI could introduce more problems than it solves.”

Looking Forward While ‘Seizing The Opportunity Now’

With faster response times, smarter solutions and cost-effective offerings, AI is not only enhancing service delivery but also driving MSPs to innovate and lead with next-generation services.

In response to growing customer demand, Fulcrum is expanding its AI capabilities at a rapid pace. The company is even doubling its staff, specifically within Fulcrum Labs, to meet the increasing demand for AI-driven services.

“We’re seeing a customer-driven revenue boom. The demand is here now, and we’re scaling up to meet it,” Davies said. “This isn’t about waiting for AI to mature; it’s about seizing the opportunity now. In fact, we’re opening a new office in India to keep up with this demand, further demonstrating our commitment to expanding our AI capabilities.”

Davies is optimistic about the future impact AI will have on Fulcrum’s portfolio.

“We’re not just adding AI to our existing services,” Davies said. “The real excitement lies in the new opportunities AI brings, such as offering services that help businesses comply with the new demands of AI usage. We’re creating a whole new portfolio of services to help our clients use AI responsibly and securely.”

Ahead’s Kaplan also expects AI to play an even more pivotal role.

“In the next three to five years, I believe AI will help us on-board clients faster and provide more personalized, proactive service,” he said. “AI-driven platforms will evolve to not only identify issues but also take action to address them, further enhancing our ability to resolve client issues swiftly and efficiently.”

Bank said he’s optimistic about AI’s ability to tailor managed services for each client.

“In the future, I believe we’ll be able to customize services even more efficiently using AI,” he said. “Right now, there’s a balance of scale and personalization, but AI will help us deliver both more effectively without sacrificing quality.”