AI use widespread among IT service providers, GTIA finds
Thu, 16th Apr 2026
GTIA has released its 2026 State of the Channel report, which finds that AI use is widespread among IT service providers.
According to the study, 97% of IT service providers use some form of AI internally, but only 28% describe themselves as AI-driven. That smaller group has formal AI leadership, governance structures and revenue models in place, representing the channel's most strategic adopters.
The research points to a market split between firms that see relative continuity and those preparing for faster change. About half of IT service providers surveyed view the channel as relevant and stable, while the other half see it as relevant but changing rapidly.
That divide appears to be shaped in part by company size, with larger providers more likely to report stability. The split creates a challenge for vendors and distributors, whose partner programmes must support businesses with different priorities and operating models.
Carolyn April, Vice President of Research and Market Intelligence at GTIA, said the findings reflect a turning point for the sector. “AI represents the most important technological shift for the channel since cloud computing revolutionized the industry,” April said.
“The data we have collected as part of the State of the Channel study shows we are at a pivotal moment in how the sector interacts with AI, promising significant changes ahead. It is an inflection point that could redefine industry standards and practices,” she added.
AI And Growth
The survey links AI maturity with broader business performance. Among providers that said they were ahead of their annual business plans, 40% also identified as AI-driven, suggesting formal AI adoption is more common among firms already meeting or exceeding their targets.
The report also links operational discipline with stronger outcomes. Firms that follow formal business plans, track measurable key performance indicators and invest in business acumen are more likely to report stronger growth, greater AI maturity and better cybersecurity revenue results.
In North America, 77% of providers expect AI services and cybersecurity services to be their leading revenue growth categories over the next two years. Within that group, 37% expect AI services to deliver the biggest increase.
The report found that 50% of North American IT service providers see rising technology complexity as the main driver of channel health in 2026. That suggests continued demand for specialist expertise even as providers adjust their business models around newer service lines.
Hybrid Models
Business models across the sector remain mixed rather than shifting fully to one format. Nearly half of respondents, 49%, said they generate a combination of recurring and project-based revenue, while only 13% operate as pure managed service providers.
Product resale also remains part of the revenue mix. Infrastructure and consulting continue to hold an important place even as AI and cybersecurity attract the strongest expectations for future expansion.
April said the market is balancing established activities with newer opportunities. “The findings underscore a channel navigating a structural transition, balancing established service lines with a shift toward higher-value, expertise-led offerings,” she said.
Vendor Relations
The study also points to lower satisfaction with suppliers. The share of IT service providers that said they were very satisfied with vendor relationships fell to 18% in 2026 from 39% in 2025.
GTIA attributed that decline to broader ecosystem realignment rather than vendor underperformance. Even so, the drop suggests expectations are shifting as providers reassess partnerships in response to AI adoption, cybersecurity demand and increasingly complex customer requirements.
The report also found that firms with higher AI maturity tend to have stronger financial practices, more advanced recurring revenue models and stricter tracking of business metrics. By contrast, providers without formal AI strategies tend to cluster in the middle ranks for business acumen and often lag peers executing against defined plans.
Overall, the findings portray a channel where AI use is now routine, but structured adoption remains limited to a minority. “This bifurcation creates a strategic challenge for vendors and distributors, whose partner programs must serve ITSPs with very different priorities and operating models,” April said.