News
AI Ambitions Outpace Execution as Governance Hurdles Persist, Report Finds
- By Sean Parker
- April 13, 2026
A report from AvePoint and Omdia has found that governance and compliance are the main barriers to AI adoption among Managed Service Providers (MSPs).
The global study, "The Road to AI Readiness: Unlocking the MSP AI Opportunity Through Governance," reports 51 percent of MSPs cite governance and compliance challenges as the top obstacle, along with issues such as data management (14 percent), value realization (14 percent), and skills gaps (13 percent).
"Governance has become the primary barrier preventing customer AI adoption," said Scott Sacket, SVP, Global Partner Strategy, AvePoint.
Sackett further pointed out that, "MSPs need unified data protection platforms that standardize governance across multi-tenant environments, transforming manual work into automated, repeatable services. Those who operationalize governance will capture a significant market opportunity."
Despite exponentially growing interest in AI, many MSPs are struggling to operationalize it. While 94 percent say they are investing in automation for AI readiness, only 43 percent report high maturity in delivering AI-ready data environments, exposing the gap between intent and execution.
The research also highlights limited visibility into data and identity environments, with complexity across multiple customer tenants cited as a key barrier to scaling automation. Around 40 percent of MSPs say operational complexity is the main challenge in implementing automated data protection and compliance services.
MSPs Are Moving Towards Integrated Platforms
In addition, the report found that MSPs are moving away from standalone tools toward integrated platforms. Nearly half (49 percent) want fully integrated solutions, and 91% say combining backup and recovery practices improves governance.
Despite these challenges, the market for compliance services is expected to grow, with Omdia projecting 21 percent growth in 2026, driven by regulatory requirements and customer demand.
"The message from this research is clear: one of the bottlenecks for end-customer AI adoption today is the operational burden of data governance and compliance, which has become more complex and essential as AI continues to spread," said Robin Ody, Practice Leader, MSP Analysis, Omdia.
"This report shows there are still a lot of untapped opportunities in this section of the market. MSPs that adopt business solutions and vertical-specific approaches to governance and compliance are going to excel at capturing this demand," Ody said.