AI vs IT Support: What AI Handles (2026)
AI has replaced most Level 1 IT support. Password resets, software installations, connectivity troubleshooting, security updates — AI handles all of these automatically now. The businesses paying £80/user/month for managed IT support are paying for a human helpdesk to do work that AI copilots and cloud-native tools handle in seconds.
Penny's take
AI resolves 70% of common IT issues without human intervention: password resets, software updates, connectivity diagnostics, security patching. If your managed IT provider is mostly handling these routine tickets, you're paying human rates for AI-level work. Keep humans for complex infrastructure, strategic IT planning, and genuine emergencies.
From my notebook
“An architecture firm with 8 staff was paying £640/month for managed IT support (£80/user), averaging 1.5 tickets per month — mostly password resets and software updates. We deployed Microsoft 365 with AI-powered self-service (Copilot handles most queries), cloud-native security, and automated updates. For the rare complex issue, a break-fix consultant at £75/hour. Monthly IT cost dropped from £640 to £120. AI handles the routine, humans handle the rare.”
“Micro-businesses (1–20 employees) overspend on IT support by an average of 40% compared to the most cost-effective delivery model for their size.”
— CompTIA UK IT Industry Outlook, 2024
What affects the cost — and can AI replace it?
- •Number of users/devices
- •AI self-service capability
- •Cloud-native vs on-premise
- •Cybersecurity requirements
- •Remaining human-only IT needs
What Penny says
Penny benchmarks your IT costs and identifies which support tasks AI and cloud-native tools already handle. Most small businesses on expensive managed IT contracts can switch to AI self-service + break-fix for complex issues — saving 60-80% on IT spend.
Ask Penny about AI alternatives →Frequently asked questions
Can AI replace IT support?
For routine issues (password resets, software installs, connectivity, updates) — yes. AI copilots and cloud-native tools handle 70% of typical IT tickets automatically. You still need human IT support for complex infrastructure, strategic planning, and genuine emergencies.
How much should a small business spend on IT?
The benchmark is 3–6% of revenue. But with AI handling routine support and cloud-native tools replacing on-premise infrastructure, most small businesses can operate at the lower end. The key shift: spend on cloud tools and AI, not on human helpdesks for routine tickets.