MSPs Urge Caution as AI Adoption Accelerates

As organisations worldwide race to adopt Artificial Intelligence (AI), Managed Service Providers (MSPs) are emerging as the voices of reason, urging businesses to prioritise strategy, governance, and risk management over hype. With AI increasingly positioned as a business game-changer, experts caution that unplanned adoption could lead to unintended consequences, failed projects, and damaged trust. Recent reports suggest a growing public scepticism—only 37% of Australians and 29% of New Zealanders believe AI’s benefits outweigh the risks, compared to 59% globally.

AI: Opportunity or a Ticking Time Bomb?

“AI is like dynamite,” says Pat Devlin, Partner at IT Architect-as-a-Service. “It can uncover immense value, but without proper planning and guardrails, it can backfire.” Devlin highlights the dangerous “gold rush mentality” seen among businesses, where AI tools are being deployed hastily without fully understanding the risks or ensuring proper oversight. The collapse of AI startup Builder.ai serves as a cautionary tale of how unchecked enthusiasm and poor execution can derail even the most promising ventures. For MSPs, the consequences of failed AI projects are immediate. As Alex Avery of Notitia points out, “MSPs are often the first to feel the impact when AI goes wrong,” with help desks flooded by frustrated users and unresolved technical issues. With vendors pushing aggressive AI adoption, many businesses are left navigating a complex and rapidly evolving landscape with little clarity on how to align AI tools with their actual business needs.

A Strategic Approach to AI Adoption
Industry experts agree that a measured, strategic approach is essential. MSPs, given their position as trusted IT partners, are uniquely equipped to guide businesses through this AI transformation.

Key focus areas include:

• Clear Business Objectives: AI deployments must be tied to realistic, measurable goals, rather than vague promises of efficiency.
• Data Governance: Organisations must ensure their data is accurate, well-managed, and compliant before layering AI on top.
• Human Oversight: AI systems should augment human decision-making, not replace it entirely.
• Transparent Pricing & Frameworks: MSPs must offer AI solutions with clear expectations around costs, outcomes, and limitations.

The Role of MSPs in Building Responsible AI
As businesses continue to explore AI, MSPs can play a pivotal role not only in deploying technology but in ensuring its responsible use. By focusing on governance, education, and strategic planning, MSPs can help organisations realise the potential of AI while minimising risks.