Insightful and Workflow Analytics: Measuring Activity vs. Actual Value for MSPs — Business of Tech: Daily MSP News & IT Services Analysis

The episode highlights a structural gap between projected AI-driven revenue in the channel and the concrete operational changes needed to capture measurable ROI. Industry surveys from Informa MSP 501, McKinsey, and PwC consistently show that while AI adoption rates among managed service providers (MSPs) are high, few organizations have restructured workflows or business models around AI. The focus remains on superficial activity tracking rather than genuine business transformation.

The MSP 501 survey found 57% of providers expect significant AI revenue growth, with 91% reporting some level of adoption. However, McKinsey’s analysis, as presented by IHL Group, shows only 11% of companies have comprehensively rebuilt processes around AI, with a minority of those realizing clear benefits. PwC’s CEO survey aligns, with over half of respondents seeing no substantive financial returns from AI unless it is extensively integrated beyond the user level.

Products like Insightful workforce analytics are now entering MSP portfolios, offering discounted access to AI usage tracking tools. Yet data from Visier and the OECD warn that monitoring software can promote superficial compliance—about half of workers admit to overstating AI usage, and most lack control over the data collected. The OECD also finds that this monitoring is often embedded in standard business software rather than dedicated AI platforms.

For MSPs, the risk is prioritizing activity measurement over outcome-based change. Vendors promote usage reports, but these often reward appearances rather than operational improvement. Meaningful results depend on redesigning workflows and measuring actual process improvements—not merely collecting tool usage statistics. Before offering AI usage metrics to clients, MSPs should validate the effectiveness of workflow changes internally to avoid incentivizing unproductive patterns.

00:00 Forecasting AI, Skipping The Redesign

04:06 When Usage Stands In For Results

06:56 The Usage Meter Hits Your Catalog

10:46 Why Do We Care?

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About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

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