MSPs Struggle to Meet Demand for AI Governance in Microsoft 365

A recent study by Augmentt has revealed significant concerns among managed service providers (MSPs) regarding their readiness to handle Microsoft 365 environments in an era of growing demand for AI governance.

The research, which surveyed 193 MSP professionals, found that nearly half of respondents had experienced an AI- or Copilot-related data exposure or near miss in a client tenant during the previous 12 months. This highlights concerns over data handling as MSPs take on a wider role in overseeing AI within Microsoft 365 estates.

The study also revealed that many MSPs are supporting AI deployments on top of Microsoft 365 environments that are not fully standardized, with 77% of respondents saying they were not fully confident that every client tenant currently met their own security baseline. The introduction of AI tools like Copilot can exacerbate existing gaps in identity management, access controls, and tenant configuration.