MSPs expect AI revenue to surge as services mature

Informa has published its 2026 MSP 501 Survey Insights Report, which found that many managed service providers expect strong revenue growth from artificial intelligence services.

Nearly one-third of MSP 501 respondents projected AI revenue growth of more than 20% in 2026 compared with 2025, while more than half expected gains above 10%. Further highlighting the shift, 57% said AI would rank among their biggest revenue gainers over the next 12 months, up from 37% a year earlier and second only to managed security.

The findings suggest the managed services market is moving AI from experimentation to a mainstream commercial offering. Artificial intelligence is now a core managed service for nearly three-quarters of providers, while broader adoption across the sector continues to rise.

The report found that 91% of MSPs now offer or use AI solutions, up from 79%. The share providing custom AI solutions rose to 36% from 21%, suggesting more providers are moving beyond standard tools to tailored customer work.

Internal use of the technology is also becoming more common. Some 54% of MSPs cited employee productivity as a key use case, 35% pointed to reducing repetitive work, and 31% said AI was helping them deliver services faster.

Revenue trends

The report also placed the AI forecasts in the context of broader financial and operating data from the managed services sector. Drawing on business inputs and aggregated financial information from more than 600 MSP 501 and MSPs to Watch organisations, the research found recurring revenue growing faster than total revenue.

Recurring revenue increased 11.9%, ahead of overall revenue growth of 9.6%. Customer accounts grew 12.73%, while workforce growth was 6.9%-a gap the report linked to operating leverage from automation, tooling and process standardisation.

Profitability was also strong across the surveyed group. Eighty-nine per cent of MSPs reported EBITDA margins of at least 6%, including 42% with margins above 15%, while 67% expected double-digit revenue growth in 2026.

That combination of expanding recurring income, stronger account growth and slower headcount growth suggests providers are looking for ways to widen margins as they add AI services. The data also indicates that AI is being treated not only as a customer offering but also as a tool for running service businesses more efficiently.

Informa estimates the managed services market is worth USD $650 billion. The report presents AI as an increasingly important contributor as providers assess which services customers will pay for and how those services should be packaged.

Robert DeMarzo, Co-author of the report and Content Leader for Informa Connect Channels, said the research reflected practical work already under way across the sector.

"MSP 501 honorees and MSPs to Watch are on the front lines putting AI to work for their customers, whether they are deploying chatbots for customer experience, applying AI to protect company data or automating business processes," DeMarzo said.

He added that the financial impact could be substantial as more providers build revenue around these services.

"The data tells us that the business opportunity around AI services is going to accelerate MSP growth and put the $650 billion managed services market on a trajectory to double in just a few years. Every eye is on the MSP and IT services channel as partners become the center of AI," he said.

The MSP 501 programme is now in its 19th year and serves as both a ranking and research exercise for managed service providers worldwide. Applicants submit verified profit-and-loss information, which Informa analyses using its own methodology.

The report was sponsored by Ingram Micro, although Informa said it retained editorial independence in conducting the survey and analysing the results.