Australian MSPs Are the Critical Players in Safe AI Adoption for SMEs

How to innovate while recognising your compliance risk? Too often, the result is either a rush into risky, unregulated tools or complete hesitation in the face of complexity. 

This hesitation in the latter’s case is understandable given the complex web of emerging regulations, from the Australian Voluntary AI Safety Code to strengthening Privacy Act reforms and expanding Security of Critical Infrastructure Act obligations, but it does mean the business misses out on the AI opportunity.  

"We're seeing two extremes," Gavin Knight, AI Program Manager at Queensland-based MSP Quadtech, said. "Either businesses are diving headfirst into whatever AI tool they can find, without deep review or consideration of the risks, or they're sometimes paralysed by the uncertainty and doing nothing at all. Neither approach is sustainable." 

Knight argued that the solution lies in leveraging existing infrastructure that businesses already trust and understand, and a growing number of MSPs are finding new opportunities in helping their customers understand this approach.  

After two decades of Microsoft cloud adoption, most Australian SMEs operate within established Microsoft Azure, Microsoft 365, and Entra ID frameworks that provide the security and compliance foundation needed for safe AI implementation. 

"The infrastructure is already there," Quadtech Managing Director Chris Burke said. "Businesses have spent years building trust in these platforms and us, establishing identity management, security protocols, and compliance frameworks. We mustn’t let the urgency of our need to innovate undo the security, compliance frameworks and best practice that underpins modern business operations. Especially for AI tools that might not even meet Australian data residency requirements" 

This approach represents a fundamental shift from traditional technology-led adoption to what Knight described as "governance-first" implementation. Rather than starting with AI capabilities and retrofitting compliance, the new paradigm begins with Strategy, ethics, risk management, and regulatory frameworks, then builds AI solutions within those guardrails. 

Quadtech's AI Enablement Program exemplifies this structured approach through four distinct phases. The process begins with clarity and establishing policies and educating staff on AI obligations. It then moves to profiling and prioritising workflows with key personnel to identify high-value, low-risk use cases. The third phase involves controlled pilot implementations with human oversight and measurable outcomes, before finally scaling successful pilots into full production while maintaining continuous governance oversight. 

"This isn't theoretical," Knight said. "It's a repeatable process that embeds compliance and security from day one. Business leaders don't have to choose between speed and assurance anymore." 

The timing is critical as Australian businesses face an increasingly complex regulatory environment. The Australian Voluntary AI Safety Code is already mandatory for government agencies, while privacy reforms introduce stronger consent requirements and penalties. Sector-specific obligations are expanding under instruments like the My Health Records Act for healthcare providers and Queensland's Professional Engineers Act governing AI-assisted design. 

"The regulatory landscape is tightening fast," Knight notes. "Our governance model ensures these obligations are addressed before implementation begins, not after something goes wrong."  

Australia's MSPs are uniquely positioned to facilitate this transition. These providers already manage the identity, security, and compliance frameworks that AI depends on, making them natural bridges between policy and practice. Rather than traditional "lock yourself in a room and become an expert" approaches that struggle with rapidly evolving AI technology, MSPs can provide ongoing workflow consulting and automation services. 

The opportunity extends beyond individual client relationships. Quadtech relies on strategic partnerships with organisations like technology distributor Crayon to develop and deliver comprehensive solutions at scale. Through these collaborations MSP’s are expanding their reach and capability and Quadtech’s approach demonstrates how this can help a technology provider to expand their service offering into process and consulting services with auditable implementation processes that can be deployed across the SME sector. 

"MSPs like Quadtech already have half the foundation in place," Knight said. "They manage the platforms, they understand the compliance requirements, they have the client relationships. They're the fastest, safest path to translate the strategic opportunity of Ai, into policy and practice on the shop floor" 

The approach is gaining recognition beyond the technology sector. Quadtech has partnered with the Australian Computer Society to present an Executive AI Breakfast Series across Toowoomba, Ipswich, and Melbourne, designed to accelerate the national conversation about safe AI adoption. 

As Burke sees it, the stakes extend beyond individual business success to Australia's competitive position globally. "SMEs are the backbone of the Australian economy, and MSPs are the backbone of SMEs," he said. "Together, they're an untapped resource for safe, scaled AI adoption, with boots on the ground, delivering real solutions." 

As these MSPs demonstrate, AI adoption doesn't have to be a choice between innovation and compliance. With the right framework, trusted platforms, and experienced partners, organisations can breathe easy while building AI capabilities that deliver genuine business benefits. 

Discover how Quadtech’s AI Enablement Program can help your business adopt AI safely.

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