MSPs
towards the Managed Intelligence Provider model, where AI driven automation, workflow intelligence and human expertise combine to deliver smarter, more proactive service outcomes.
Move from reactive support to autonomous coordination Tere is a flood of information available about agentic AI workflows, but, in simple terms, they are multi-agent systems that can orchestrate monitoring, triage, remediation, identity management, and expectation handling. Tis goes far beyond ticket automation, moving instead towards removing the noise that distracts engineering teams so that they can focus on higher-value services. Tis is particularly useful for smaller MSPs with stretched teams. Teir operational load becomes more manageable, predictable, and scalable. Before MSPs deploy agentic AI, they should ensure standardised
processes and documentation are in place. Automation amplifies what already exists, so consistent workflows, clear escalation paths and structured service delivery act as the foundation for effective AI driven coordination. Te opportunities of agentic AI for smaller MSPs are backed by
McKinsey technical leaders and tech enterprise-backed initiatives. Debasish Patnaik, Senior Partner, who leads QuantumBlack, AI by McKinsey for the UK, has said, “Everyone expects 2026 to be the year of fully autonomous agents; when what is more likely is it’s the year autonomy shrinks by design. Enterprises will move from “AI that chats” to “AI that settles”, closing tickets and clearing exceptions end-to-end with audit trails, and the real productivity liſt will come from automating coordination (handoffs, approvals, escalation), not just tasks […].” To help empower the next generation of AI innovation across the
UK and Ireland, Microsoſt has announced, in collaboration with NVIDIA and WeTransact, the 13 pioneering soſtware companies it has selected to join its Agentic Launchpad. Building on its continued investment in the UK’s AI infrastructure and innovation, Microsoſt will support these companies to develop intelligent, autonomous and next-generation AI systems – ultimately to help start-ups and scale- ups transform and meet customer expectations faster. Tis evolution is reinforced by the UK Government’s AI Skills
Boost programme, which aims to equip up to 10 million workers with essential AI skills by 2030. As a strategic partner in the initiative, Pax8 is helping ensure MSPs and their clients can access the training and guidance needed to adopt AI effectively and responsibly.
Take full advantage of the tools on hand Speaking of Microsoſt, MSPs should make the most of the AI tools they already own, such as Microsoſt 365, Intune, and Microsoſt Copilot. Whichever platforms MSPs are using, updates and improvements are happening all the time. Expansions can bring enterprise-grade AI to SMB clients at accessible prices, including hyper-personalised workflow insights. Microsoſt’s new Intelligence IQ Layer (Foundry, Work and Fabric) enable agent creation within Word, Excel, and PowerPoint, which will simplify standardised documentation and reporting. MSPs should pay close attention to the evolving capabilities of their pre-existing investments to reduce overheads. By becoming customer zero for these AI capabilities and testing them within their own operations first, MSPs can
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“Before MSPs deploy agentic AI, they should ensure standardised processes and documentation are in place.”
better understand performance, risks and real world value before introducing them to clients. As capabilities expand, MSPs should also build intentional AI
governance, defining data policies, oversight responsibilities and quality checks, to ensure implementations remain secure, consistent and trusted by clients. By learning how to apply and manage these technologies within their own environments first, including exploring tools such as Microsoſt’s Agent 365 to understand how autonomous workflows behave in real-world scenarios, MSPs can develop the confidence and insight needed to guide their customers responsibly. Te October 2025 Omdia blog covering the MSP Summit
reported estimates that labour accounts for up to 80% of MSP costs, with vendors targeting a 30% reduction in Level 1 (front-line, entry-level, or “Help Desk” tier) and 2 (the advanced support tier of technicians that possess deeper expertise) workloads through AI automation by 2026. Tis indicates the importance of upskilling teams, rather than making cuts to them. Training engineers, service managers, and account managers
to confidently use AI will empower them, improve retention and, ultimately, create a ripple effect of wider benefits such as faster, better work and more efficient collaboration.
Seek qualified support for smarter financial planning For smaller MSPs seeking to invest in AI and automation, it’s worth exploring options for access to capital allowances, R&D credits, and accessible finance. Te 2025 Autumn Budget introduced expanded investment allowances and access to growth capital, which could support companies looking to innovate and modernise their digital operations. MSPs should seek qualified financial and legal guidance to maximise the potential benefits to them. Tis could be the year that smaller MSPs remember as the year
when everything changed – the moment when transformation enabled confidence in revenue growth to soar. Te mentality should not be to replicate what larger competitors
are doing but instead, to build a leaner, smarter, and more resilient business model. Agentic AI, team upskilling, and smart financial planning are the tools in the builder’s toolbox that MSPs should utilise. Start small, standardise, and move towards intelligent automation to build a service organisation ready for today’s and tomorrow’s pressurised business landscape.
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