ISOutsource Releases SMB IT Trends Report on AI Adoption and Governance Gaps

ISOutsource has released its 2027 SMB IT Trends Report, which provides insights into the technology landscape of small and midsize businesses (SMBs) as they prepare for the coming year. The report, based on survey responses from over 100 SMB and technology leaders, highlights the rapid adoption of artificial intelligence (AI) and the challenges businesses face in governance and resilience.

According to the report, 71% of surveyed organizations are already using AI, with 50.8% planning additional investment in AI and machine learning. This significant uptake of AI indicates a shift from experimentation to operational integration. However, the report also reveals a gap in governance maturity, as only about 22% of respondents report using a fully integrated approach to governance, risk, and compliance.

Business continuity remains a critical planning consideration for SMBs. Approximately 69% of respondents report having a disaster recovery plan, yet only 12.3% identified Business Continuity and Disaster Recovery solutions as an investment or upgrade priority for the coming year. Additionally, 17% of respondents reported experiencing business data loss due to storage or backup failures, underscoring the need for robust recovery capabilities.

The report connects these findings to a broader challenge: how organizations can pursue innovation without allowing governance, security, resilience, and organizational capacity to fall behind. ISOutsource President and CEO, Naveen Rajkumar, emphasized the importance of embedding governance, accountability, and resilience into technology and AI strategies from the outset.

The 2027 SMB IT Trends Report builds on ISOutsource's business-first approach to technology strategy and the insights developed from the company's 2026 IT Confidence Index series. While the IT Confidence Index focused on simplifying, optimizing, and protecting technology environments, the new research offers a direct view into how SMBs are approaching the year ahead.

The report concludes with an executive planning checklist designed to help SMB leaders evaluate AI readiness, cybersecurity maturity, recovery capabilities, governance visibility, and internal capacity before finalizing their 2027 technology roadmaps. This comprehensive guide aims to ensure that businesses can govern, secure, recover, and sustain the technologies they adopt.

In summary, while SMBs are rapidly adopting AI, the report highlights the need for improved governance and resilience strategies. Organizations must address these gaps to ensure sustainable growth and preparedness for future challenges.