SMBs Bet Big on Tech and AI in 2025, Eyeing Growth Despite Jitters

New GTIA report shows smaller firms are upping tech budgets, diving into AI, and seeking smarter partnerships with MSPs

Small and midsize businesses aren’t backing down — not from inflation, not from global supply hiccups, and definitely not from tech. If anything, they’re charging in, armed with optimism, AI, and a willingness to spend more on tools that promise real results.

That’s the main pulse coming out of this year’s GTIA ChannelCon 2025, where the newly released SMB Technology & Buying Trends report painted a surprisingly bullish picture.

Spending up, and not just by a little

Forget the gloom. According to the Global Technology Industry Association (GTIA), nearly 40% of SMBs increased their tech budgets in 2025. What’s more, another chunk — roughly 4 in 10 — said they’re ready to throw in even more money by year-end, assuming things don’t take a turn for the worse economically.

“Most SMBs are pretty optimistic about their own business,” said Carolyn April, GTIA’s VP of research and market intelligence, during her presentation at ChannelCon. “About one-third think they’re thriving. That is in an environment right now that we all know has been pretty chaotic in terms of the economy.”

It’s not blind optimism either. SMBs have been through the ringer. The pandemic, inflation spikes, broken supply chains — they’ve seen it all. But many emerged leaner, meaner, and more tech-hungry.

AI is no longer out of reach

A few years ago, artificial intelligence felt like a Silicon Valley toy — all buzzwords and no budget. Not anymore.

This year’s GTIA report shows a clear pivot: SMBs aren’t just aware of AI, they’re using it. From customer service chatbots to smarter CRM tools, AI adoption is moving fast. And it’s not limited to big firms with deep pockets.

One small law firm in Illinois now uses an AI tool to draft boilerplate contracts. A 10-person logistics company in Ohio relies on predictive analytics to better route deliveries. These aren’t pipe dreams. They’re happening — right now.

A mid-sized manufacturing CEO who attended ChannelCon summed it up like this: “We’re not experimenting with AI anymore. We’re building around it.”

Where SMBs are putting their money

GTIA’s report didn’t just track whether spending is up. It broke down where the dollars are going. Here’s what stood out most:

• Cybersecurity tools: Still the top priority, but with some worrying gaps (more on that later).

• Cloud-based collaboration: Think Teams, Slack, and other tools to make hybrid work easier.

• Automation platforms: Especially for invoicing, scheduling, and inventory.

• Customer-facing tech: Websites, live chat, loyalty apps — all aimed at keeping customers hooked.

One particularly notable stat: more than 70% of SMBs surveyed said they plan to automate at least one core business process by the end of 2025.

That’s no small shift.

The growing MSP opportunity — and challenge

Here’s where it gets interesting. Most SMBs know what they want out of tech: better customer experiences, streamlined operations, and happier employees. But here’s the twist — a huge number of them have no idea how to actually make that happen.

That’s why managed service providers (MSPs) are suddenly back in the spotlight.

Carolyn April called it out plainly: “There’s a real opportunity here. SMBs aren’t just buying technology. They’re buying results. MSPs that can deliver business outcomes — not just hardware or licenses — are going to win.”

It’s not about installing software anymore. It’s about helping SMBs tie technology to growth.

There’s still some skepticism. Some SMBs complain about being “upsold to death” by tech vendors. Others say they’ve been burned by overpromises and underdelivery. But for MSPs who can walk the talk, the door is wide open.

Cybersecurity: a blind spot that’s still too common

Let’s talk about the elephant in the server room: cybersecurity. Yes, it’s still a major focus. But GTIA’s report pointed to one big contradiction — while investment is growing, strategy isn’t always keeping pace.

Some companies are bolting on tools without a clear plan. Others think antivirus software from five years ago still cuts it.

A single sentence in the report says it all: “Many SMBs are doing something, but not necessarily doing enough.”

One IT consultant at ChannelCon said he’s seeing the same pattern everywhere. “They’ll spend money on endpoint protection but skip employee training. Or they’ll run backups but never test them.”

It’s like locking your front door and leaving the windows open.

By the numbers: SMB optimism in 2025

Let’s put a few of the key data points into a simple table for quick reference:

That optimism isn’t just talk — it’s being backed by real spending and sharper priorities.

A long road, but a clearer direction

SMBs aren’t playing catch-up anymore. They’re setting their own digital agendas. And even though many still wrestle with legacy tools or spotty strategies, the momentum is there.

You can feel it — in the conference halls, in the budget spreadsheets, and in the casual hallway chatter at ChannelCon.

One MSP said it best over coffee: “It’s like SMBs have realized tech isn’t an option anymore. It’s the engine now.”