Small and medium-sized businesses are increasingly recognizing the need to adopt artificial intelligence to remain competitive, with a recent survey by Vida revealing that 97% of SMBs using voice AI agents reported revenue increases. Despite these positive outcomes, many SMBs still view AI as unnecessary or overly complicated, with 63% of organizations expressing concerns about lacking the right foundation to support AI initiatives. Barriers to adoption include fears about the complexity and cost of AI, as well as concerns that customers prefer human interaction. Salesforce research indicates, 91% of SMBs that have adopted any form of AI have reported revenue gains, suggesting a significant opportunity for those willing to embrace this technology.
This is echoed in data from a recent survey by Reimagine Main Street in partnership with PayPal, which reveals that a growing majority of small businesses view artificial intelligence as essential for maintaining competitiveness. The survey, which included nearly 1,000 small businesses with annual revenues between $25,000 and $5 million, found that 82% believe AI is crucial for competing in today’s market. Currently, 25% of respondents have integrated AI into their operations, while over half are exploring its implementation. Among those using AI, marketing and customer engagement were identified as key areas for impact, with 77% highlighting its significance.
A recent report highlights a significant shortage of artificial intelligence talent in the IT sector, with over half of IT leaders indicating their companies faced an undersupply of AI skills. This figure has risen from just 28 percent in the previous report published in 2023, marking AI know-how as the top scarce technology skill. The demand for AI expertise has surged, with nine in ten respondents reporting that their organizations are piloting or investing in AI initiatives, up from 59 percent two years ago. However, despite this investment, more than two-thirds of leaders have not yet seen a measurable return on investment. According to Bev White, CEO of Nash Squared, the lack of established practices in AI implementation has contributed to the skills gap, emphasizing the need for a combination of formal training, reskilling, and on-the-job knowledge sharing to address the issue.
Why do we care?
SMBs are AI-curious but risk-averse—this is a strategic moment for IT service providers to become the guides, not the pushers. The real opportunity lies not in pitching AI as magic, but in helping clients use it meaningfully and measurably, especially where it reinforces—not replaces—human value.
This is especially relevant in a context where AI talent is in critically short supply, and even large organizations struggle to convert pilots into measurable returns. Most SMBs won’t be hiring in-house AI engineers. They’ll be looking to trusted partners—likely their MSPs or IT consultants—to bridge that gap. That creates a ripe opportunity for ITSPs to position themselves not as sellers of AI tools, but as AI translators, trainers, and integration partners.
Providers who develop practical AI onboarding services, provide training to non-technical users, and help SMBs structure data and workflows to enable intelligent automation will differentiate themselves. Those who merely resell AI tools without context risk becoming part of the problem. The next evolution of managed services isn’t AI-powered—it’s AI-enabled, with the provider as the differentiator.