Artificial intelligence is reshaping the technology services landscape, with leading reports from IDC, Gartner, and new offerings from ServiceNow pointing to a future where managing AI sprawl becomes as critical as delivering AI capabilities themselves. High-performing channel partners are leaning into AI specialization, driving measurable outcomes for customers and fueling double-digit growth despite market pressures. At the same time, ServiceNow’s “AI Experience” platform aims to consolidate fragmented AI tools, offering a unified interface that can streamline operations and reduce complexity. The broader market, according to Gartner, is accelerating rapidly, with spending on generative AI projected to surpass traditional software in the coming years—meaning providers who fail to deliver outcomes risk being left behind. Yet the rise of AI isn’t all progress. Studies from Stanford, European labor groups, and cybersecurity organizations reveal a governance crisis brewing in workplaces. Workers are reporting a surge of “workslop”—AI-generated content that looks like productivity but creates no value—costing companies billions. Algorithmic management is eroding worker autonomy, while surveillance and data risks undermine trust in employers. To compound the problem, employees are increasingly feeding sensitive data into AI systems without adequate training, raising new security vulnerabilities. These trends highlight the urgent need for policies, training, and governance frameworks to ensure AI adds value instead of chaos. The disruption is also spilling into specific industries. In translation, human professionals are already being displaced as AI-driven tools gain adoption. WhatsApp’s newly built-in translation capability demonstrates how “good enough” AI can be enough for most users, sidelining human expertise except in fields requiring deep cultural or contextual understanding. The translation sector serves as an early warning sign: as AI grows more capable, other professions—including legal research, finance, and customer support—face similar pressures. The lesson for providers is to help clients identify where AI is appropriate and where human oversight remains essential. Meanwhile, major vendors are steadily encroaching into IT services, redrawing the lines of what MSPs can offer. Acronis is embedding patch management into its backup suite, Slack is introducing AI-powered ticket deflection, GoTo and Nexthink are fusing support and analytics, and IBM is shifting developer tooling to its hosted cloud. Each move chips away at traditional MSP offerings, putting pressure on providers to adapt. The opportunity lies in integration and governance—helping customers unify fragmented tools, ensure compliance, and deliver outcomes that vendors alone cannot. For MSPs, the message is clear: evolve toward higher-value services, or risk being sidelined by the very vendors you once partnered with. Four things to know today 00:00 From Growth to Governance: IDC, Gartner, and ServiceNow Show Where AI Is Headed for Partners and Customers 05:07 AI at Work: “Workslop,” Surveillance, and Data Leaks Signal Rising Governance Crisis 08:42 From WhatsApp to Workflows: AI Translation Disruption Signals Broader Job Shifts Ahead 11:33 Vendors Expand Into IT Services: Acronis, Slack, IBM, and GoTo Redraw the MSP Value Line This is the Business of Tech. Supported by: https://scalepad.com/dave/ https://cometbackup.com/?utm_source=mspradio&utm_medium=podcast&utm_campaign=sponsorship Webinar: https://bit.ly/msprmail All our Sponsors: https://businessof.tech/sponsors/ Do you want the show on your podcast app or the written versions of the stories? Subscribe to the Business of Tech: https://www.businessof.tech/subscribe/ Looking for a link from the stories? The entire script of the show, with links to articles, are posted in each story on https://www.businessof.tech/ Support the show on Patreon: https://patreon.com/mspradio/ Want to be a guest on Business of Tech: Daily 10-Minute IT Services Insights? Send Dave Sobel a message on PodMatch, here: https://www.podmatch.com/hostdetailpreview/businessoftech Want our stuff? Cool Merch? Wear “Why Do We Care?” - Visit https://mspradio.myspreadshop.com Follow us on: LinkedIn: https://www.linkedin.com/company/28908079/ YouTube: https://youtube.com/mspradio/ Facebook: https://www.facebook.com/mspradionews/ Instagram: https://www.instagram.com/mspradio/ TikTok: https://www.tiktok.com/@businessoftech Bluesky: https://bsky.app/profile/businessof.tech Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
