A new global survey by Pax8 and Channelnomics reveals that 88% of small and midsize businesses (SMBs) have implemented at least one AI system, yet struggle with infrastructure, data hygiene, and security issues that hinder full value realization. The survey highlights the pressing need for AI adoption, with 80% of SMBs fearing competitive disadvantage if they fail to embrace AI. Despite these challenges, SMBs are enthusiastic about AI’s potential, with 96% planning to invest further in AI within the next year. Key motivations include faster market adaptation, cost reduction, and new market entry. However, significant barriers such as insufficient infrastructure (42%) and data privacy concerns (40%) persist. Managed Service Providers (MSPs) are identified as crucial partners, with 58% of SMBs already working with solution providers to navigate AI complexities. The report underscores the pivotal role of MSPs in offering technical integration, support services, and training, enabling SMBs to leverage AI effectively for a digital-first future.

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