AI Growth for MSPs Stalls as 95% of Projects Fail; Microsoft & Apple Face EU Regulatory Changes

Business of Tech: Daily 10-Minute IT Services Insights

Managed service providers (MSPs) are experiencing significant growth driven by interest in artificial intelligence (AI), with 92% reporting an uptick in business. However, a concerning trend has emerged: only about half of these providers feel equipped to assist small and mid-sized businesses in adopting AI tools, a sharp decline from 90% the previous year. This growing readiness gap highlights the challenges MSPs face in meeting customer expectations as AI adoption accelerates. Experts emphasize the need for integrated security solutions to help navigate the complexities of AI.

OpenAI's recent benchmarks reveal that a staggering 95% of enterprise AI projects fail, underscoring the difficulties companies encounter in justifying their AI investments. Despite advancements in AI models, their effectiveness remains inconsistent, particularly in handling complex, ongoing projects. The evaluation system introduced by OpenAI aims to bridge the gap between theoretical capabilities and real-world demands, indicating that while AI can perform tasks faster and cheaper than humans, it still struggles with contextual understanding and interaction.

In the realm of digital content, Cloudflare has launched a feature allowing website owners to block Google's AI overview search product, addressing concerns from publishers about traffic losses due to AI-generated content. This move comes amid legal challenges faced by Google from publishers who argue that their content is being used without proper attribution. While Cloudflare's feature offers a potential solution, its effectiveness hinges on Google's compliance, raising questions about the future of content ownership in the age of AI.

Regulatory pressures are also reshaping the landscape for major tech companies. Microsoft has been compelled to offer free extended security updates for Windows 10 in select European markets, responding to consumer advocacy for better support. Meanwhile, Apple has delayed the release of several features in Europe due to compliance challenges with the EU's Digital Markets Act. These developments highlight the increasing influence of regulation on technology services, prompting MSPs to prepare for client inquiries regarding disparities in service offerings across regions.

Four things to know today

00:00 92% of MSPs Report AI-Driven Growth, But Only Half Feel Ready to Support SMB Adoption

02:50 Fast, Cheap, and Fragile: OpenAI Finds AI Struggles in Real Work While Cloudflare Challenges Google’s AI Overviews

06:44 EU Pressure Forces Microsoft to Extend Free Windows 10 Updates as Apple Delays Features Under DMA

09:39 Innovation vs. Obligation: How Debt, Automation, and AI Metrics Are Rewriting the Managed Services Playbook

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