Generative AI to fuel the channel growth

Generative AI is poised to be a game-changer for channel growth, with experts predicting a US $159 billion opportunity for the channel ecosystem by 2028. The channel IT spend will reach nearly $5 billion by year’s end, defining 70% of IT spending in 2023.

This report underscores the enormous opportunity for the channel ecosystem where the partners have to leverage Gen AI to unlock revenue for new services and enhance internal productivity.

Channel partners can capitalize on this opportunity by offering AI services, developing AI software, offering advanced data services, and reselling, co-selling and upselling AI products with services around them.

See how generative AI is a powerful tool for channel growth:

· Increased efficiency and productivity: AI can automate time-consuming tasks like lead generation, customer service, and content creation, freeing up channel partners to focus on high-value activities like closing deals and building relationships.

· Personalized marketing and outreach: AI can generate personalized content and experiences that resonate with specific customer segments, leading to higher engagement and conversion rates.

· New revenue streams: Channels can offer AI-powered services like data analysis, predictive modelling and content creation to their customers, opening up new income sources.

· Enhanced sales performance: AI can provide insights into customer behaviour and market trends, helping channel partners identify sales opportunities and close deals more effectively.

The two largest new revenue opportunities for the channel ecosystem are in offering AI services and AI software development. Other new revenue opportunities include advanced data services that use or enable AI, and the reselling, co-selling and upselling of AI products with services around those products.

Moving ahead, Channel partners should prepare today to capitalize on these opportunities while safeguarding against over-investment, depending on their business model. To do this, partners should determine their AI strategy and offerings, while also building expertise and strategic AI partnerships and continue to invest in ongoing development.