AI demand fuels growth for Canadian MSPs amid security gaps
A recent survey conducted by OpenText reveals that surging interest in artificial intelligence is driving growth for Canadian Managed Service Providers, while simultaneously widening the gap between AI demand and provider preparedness, particularly in the areas of integrated and easily deployable security solutions for small and mid-sized businesses.
The 2025 Managed Services Survey, now in its third year, involved more than 1,000 MSPs in Canada, the United States, and the United Kingdom. The report's findings show that while 92% of MSPs report business growth as a result of increased AI interest, only about half currently feel equipped to guide their SMB customers in adopting AI tools. This number has fallen sharply from the previous year, when 90% of providers felt ready to meet customer needs related to AI and associated security demands.
In Canada, the trend is even more pronounced. The report finds that 82% of Canadian MSPs say their business growth is due to AI interest, and 92% expect AI to continue fuelling growth over the next year. However, just under 40% have actually developed and deployed AI cybersecurity agents for their SMB customers, highlighting an ongoing readiness gap.
AI driving growth
MSPs in Canada are preparing to support customers with specific AI tools at a rate outstripping global counterparts. Nearly 85% of Canadian respondents said they felt prepared to support customers with Microsoft Copilot, compared to less than half globally.
The survey shows that the surge in AI adoption is matched by growing expectations around cybersecurity. Over 80% of Canadian MSPs indicated that their customers are interested in autonomous AI-driven cybersecurity solutions, positioning AI capability as the third most valued MSP attribute after threat prevention and round-the-clock support.
"MSPs are under pressure to match the pace of AI adoption by their SMB customers," says Michael DePalma, Vice President of Business Development at OpenText Cybersecurity. "They need security partners who can deliver integrated, scalable services that reduce tool fatigue and simplify operations. That's exactly, what OpenText Secure Cloud platform provides - flexible bundles, simplified deployment, and a channel team with deep industry expertise to help MSPs achieve scalable, profitable growth that meets the accelerating demands of AI-driven security."
Simplicity and integration
The findings suggest a significant shift in MSP customer priorities, favouring service strength and simplicity over price. Nearly half of MSPs (44%) cite the security solution's strength as the most important factor in purchasing decisions, while only 8% said price was their leading concern. The number of customers mentioning cost savings as a primary challenge has dropped considerably, from 28% in 2023 to just 17% in 2025.
All-in-one security bundles that package prevention, detection, and response are increasingly popular in Canada, with 57% of MSPs pointing to these as the most sought-after product by SMBs. Endpoint, network, and email security bundles come next at 48%. Ease of integration is marked as "extremely important" by 78% of MSPs, a factor now surpassing concern over the number of vendors involved.
New growth engines
Canadian MSPs are leveraging customer demand to broaden their service portfolios. The survey finds that 88% of Canadian MSPs plan to expand their managed service offerings in the coming year, with 45% actively developing new sets of services. Integrated solutions remain a priority for new developments; 38% cited integration across tools as the foremost goal, followed by services with a high attach-rate to core offerings (18%), and broad applicability across verticals (16%).
For attracting new SMB clients, referrals play the largest role (32%), outpacing online search and digital advertising (29%) and technology marketplaces (25%).
Security concerns for Canadian organisations
The top security risks identified by Canadian organisations align with global trends: 56% of respondents pointed to phishing as their most significant concern, followed by ransomware (46%) and compliance or regulatory risk (39%).
MSPs have also increased internal reliance on AI applications. The survey indicates that 67% use AI for customer support enhancement, 66% for technical support or ticket triage, and 58% for threat detection and response, demonstrating an attempt to develop internal expertise while externally facing talent and tool shortages persist.
The survey methodology included responses from managers, executives, security professionals, and customer relationship managers at MSPs of varying sizes, ensuring a broad picture of challenges and opportunities across the sector in the current climate of rapid digital change and heightened security requirements.
