Kaseya predicts AI risks, job shifts & MSP growth as IT evolves

Senior executives at Kaseya have outlined a series of predictions for the technology and managed services sectors, forecasting significant changes driven by artificial intelligence adoption, labour market shifts, evolving cybersecurity landscapes, and renewed focus on sustainability and data-driven business models.

AI adoption risks

Kaseya Labs General Manager Mike Puglia warned of a massive uptick in artificial intelligence deployments, prompted by executive pressure to satisfy shareholders. He pointed to growing risks in cybersecurity as organisations adopt AI to overhaul business processes and customer interaction, often without sufficient in-house expertise or established security protocols.

"Every single company is under enormous pressure to 'deploy AI' - it's the wild-west as companies bring the technology in-house to replace processes, customer-interaction, etc. which will perhaps be the largest deployment of an untested/poorly understood technology in IT history. Meaning - you simply don't have IT teams with technical experience in AI and there is virtually zero understanding of what/how to monitor from a cybersecurity perspective," said Puglia, General Manager, Kaseya Labs.

Job market disruption

Puglia also predicted a contraction of entry-level roles in software development and cybersecurity as AI replaces some tech-based tasks. He said this would affect the employment prospects for future graduates.

"We are already seeing this happen, the first shoe to drop is entry level tech jobs - coders, first line security analysts and tech support are going to be replaced with AI - whether it will work or not is unknown, but it is clear the class of 2026 graduating in May/June will have a hard time finding employment," said Puglia.

Cybercrime enforcement

Puglia highlighted a shift in the fight against cybercrime, noting that law enforcement bodies and governments are beginning to play a more active role following a series of arrests of cyber attackers in the US and Europe. He emphasised the growing need for regulatory and punitive measures in addition to organisational cyber defences.

"Up until now, law enforcement and governments have been making rules for organisations to protect themselves - which is only one part of the solution - with recent arrests in the US and Europe of attackers, we are starting to see them 'join the fight' as they do with any other type of crime," said Puglia.

MSP sector shifts

Greg Jones, Senior Vice President of MSP Enablement (EMEA & North America) at Kaseya, observed ongoing evolution within the managed service provider sector, shaped by continuing mergers and acquisitions. He predicted a market defined by both large-scale hyperscaler MSPs and highly specialised, agile firms.

"There is every reason to be optimistic about where the MSP industry is heading as we are entering a new era of growth, innovation and opportunity. The market will continue to evolve, with more consolidation in the market due to mergers and acquisitions, creating a landscape dominated by powerful hyperscaler MSPs and agile, highly specialised firms that deliver real, bespoke value to their clients," said Jones, Senior Vice President of MSP Enablement (EMEA & North America), Kaseya.

SMB spend growth

According to Jones, spending by small and medium-sized businesses on information technology is now growing faster than at the enterprise level, creating new commercial opportunities for MSPs that can respond to their requirements.

"While the broader economic climate will always present challenges, the momentum is on our side. For the first time, IT spend in the SMB and SME markets is outpacing enterprise investment. This is an incredible opportunity for MSPs that are ready to innovate, evolve and grow. The future is bright for those willing to take the lead," said Jones.

Sustainability focus

Jones identified sustainability as an increasingly important factor for MSPs. Clients are beginning to prioritise environmental and social responsibility, which will influence provider selection and competitive differentiation.

"Sustainability is moving from a nice-to-have to a business imperative. Clients are increasingly choosing MSPs that align with their environmental and social goals. Energy-efficient data centres, responsible supply chains and community engagement will become part of an MSP's competitive edge. Those that integrate sustainability into their strategy will stand out as trusted, future-ready partners," said Jones.

AI and compliance drivers

Jones pointed to AI and compliance services as areas of strong demand and profitability for the channel, with AI anticipated to further transform MSP operations. He said Compliance-as-a-Service is emerging as a significant growth area, helping businesses face regulatory scrutiny.

"AI is still in its early stages, and its potential for MSPs is extraordinary. We have only just begun to see how it can transform operations, drive efficiency and unlock entirely new ways to deliver outcomes that matter. At the same time, Compliance-as-a-Service is becoming one of the most exciting and highly profitable growth areas in the channel, helping businesses stay secure and meet rising regulatory demands," said Jones.

Data-driven evolution

Jones predicted that MSPs will increasingly adopt data-driven approaches, using analytics, automation, and AI insights to anticipate and address client needs, transitioning from reactive responders to proactive strategic partners.

"We are also seeing the rise of data-driven MSPs that use analytics, automation and AI insights to make smarter business decisions, predict client needs and measure outcomes in real time. Rather than reacting to issues, these MSPs operate proactively, anticipating challenges before they arise and proving value through measurable business impact. Those that embrace data-driven strategies will move from being service providers to becoming trusted strategic advisors," said Jones.

Workforce expectations

Jones said changes in workforce demographics, as more Generation Y and Generation Z professionals enter leadership positions, will affect how MSPs engage with clients.

"As Gen Y and Gen Z professionals take on more C-suite roles, they bring fresh expectations around technology and how they engage with business partners. This shift will create fantastic opportunities for MSPs that adapt to these new buying journeys and can deliver exceptional digital experiences," said Jones.