I’m back from GTIA’s ChannelCon, and so let’s review the state of play.
I’ll begin with GTIA’s own data. In their newly released survey, 34% of small and medium-sized businesses reported thriving, especially among IT firms, while only 19% of manufacturers shared this sentiment, highlighting the sector differences. Despite a cautious stance on technology budgets, with 47% of small and medium-sized businesses maintaining their spending, there is strong interest in artificial intelligence, with 63% believing it will be the most impactful technology in the next two years. Interestingly, 35% of these businesses stated they would invest unexpected financial gains into cutting-edge technology, showing a desire for innovation despite economic uncertainty. 65% of executives view technology as a primary factor in achieving their business goals, while more than 60% plan to increase their spending on artificial intelligence this year. The data suggests that nearly two-thirds of SMBs are expected to invest between $25,000 and $1 million in technology, indicating a willingness to prioritize tech spending over larger enterprises. And also notable from the data – a majority are buying their technology from the vendors direct.
Small businesses are experiencing a shift in labor market dynamics, with a recent report from the National Federation of Independent Business revealing that 33% of small business owners reported unfilled job openings in July, down from 36% in June. While this is the lowest level since December 2020, it remains above the historical average of 25%. According to NFIB Chief Economist Bill Dunkelberg, although the challenges in finding qualified workers are easing, they are still significant, as 84% of hiring businesses reported encountering few or no qualified applicants. In July, 57% of small business owners were actively hiring, though this marks a slight decrease from the previous month. Skilled trades sectors such as construction and transportation showed the highest number of job openings, while finance and agriculture lagged behind. Despite some ongoing challenges, a net 14% of small business owners plan to hire new employees in the next quarter, indicating a commitment to growth as they navigate the complexities of the labor market.
Microsoft has published a study showing which jobs are likely to stay safe from the spread of artificial intelligence. The research looked at queries from the Bing Copilot chatbot to see which tasks users ask AI for help with, leading to the creation of an “AI applicability score” that ranks jobs based on how likely they are to be integrated with AI. The report states that jobs in the knowledge economy—such as roles in computer science, mathematics, and administrative support—have the highest scores for AI applicability. Conversely, blue-collar jobs like dishwasher, cement mason, and motorboat operator score lower on this scale. Microsoft warns against assuming that high AI applicability will cause job loss, noting that the link between AI abilities and employment results is complicated and often unpredictable.
Why do we care?
SMBs are saying two things loud and clear—AI’s where they’re spending and buying directly from vendors. That’s the channel warning shot. If your pitch is “we can get you that software,” you’re toast. The value’s now in making the tech work together, securing it, and delivering results.
They’re putting real money into AI—$25K to a million bucks—and the labor market’s still tight, which makes automation a much easier sell. Microsoft’s data says office jobs are the most AI-ready, so that’s where the quick wins are.
The fact that 34% of SMBs say they’re thriving—especially in IT—contrasts sharply with just 19% of manufacturers. This sector gap is important when targeting verticals.
Bottom line—stop thinking like a reseller, start acting like a strategic partner. Because if you don’t, the vendor’s already talking to your customer.