Over the past few months, I’ve attended several partner events, and a consistent theme keeps emerging – everyone’s talking about AI. Not just as a product feature, but as a force reshaping what customers expect from their partners. And nowhere is that more evident than in the managed services space.
For years, many MSPs built successful businesses on keeping systems running smoothly (patching, backing up, securing, etc) before evolving to proactive management, supported by recurring revenue models. But as AI enters the mainstream, clients are asking tougher questions: How do we use AI to grow our business? How do we trust it? How do we govern it?
Suddenly, the role of the MSP is shifting. You’re no longer just the person who “keeps the lights on” – you’re the person who helps clients see the light on what’s possible. Another evolution is necessary.
From Infrastructure Management to Strategic Advisor
This evolution isn’t optional. The MSPs who cling to a reactive, ticket-based model will find their margins squeezed as automation eats into low-value work. The ones who thrive will be those that step up to guide clients through business transformation, not just technology management.
That means changing the nature of the client conversation. Instead of asking, “What problems do you need fixed?” start asking, “What outcomes are you trying to achieve?”
For example, one MSP I came across recently has stopped leading with infrastructure. Instead, they deployed an AI-powered bot for a college, to handle student enquiries and application processing. The result? Enormous productivity gains for the client, and a more strategic, higher-value relationship for the MSP.
AI-Powered Sales and Service
But AI isn’t just for client solutions – it can also supercharge your own sales process.
We’re starting to see MSPs use AI for things like:
- Prioritising leads based on engagement patterns and likelihood to close
- Analysing client data to flag churn risks or upsell opportunities
- Automating proposal writing, follow-ups, and meeting preparation
These tools don’t replace good salesmanship – they amplify it. They help sales teams focus their energy where it matters most.
The key is to start small. A common phrase I keep hearing is “Customer Zero”, meaning use your own business as the testing ground. Pick one workflow where AI can help you win back time or improve consistency, then measure the impact before expanding further.
Just remember: AI won’t fix a broken process. If your data is messy or your sales discipline is weak, AI will only make that clearer, faster.
Adopting a Data Platform Mindset
That brings us to the foundation of it all – data. Every MSP I’ve spoken with that’s had early success with AI has one thing in common: they treat data like an asset, not an afterthought.
If you’re serious about delivering AI value to clients, you need to help them get their data house in order.
That means:
- Consolidating and cleaning client data
- Integrating systems so information flows freely
- Building governance and security into every step
When you do this well, you don’t just deploy technology – you earn trust. And trust is what allows you to evolve from being a service provider to being a strategic partner.
Packaging AI Services for Recurring Revenue
AI presents a massive opportunity, but only if it’s packaged properly. Too many MSPs are still treating AI as a one-off project – install the tool, send the invoice, move on. That’s not sustainable.
The real value lies in turning AI capabilities into recurring services, such as:
- AI Advisory-as-a-Service: guiding clients on where AI fits in their business
- AI Optimisation-as-a-Service: tuning and improving models or automations over time
- AI Development-as-a-Service: creating/enhancing custom agents for specialised client needs
- Managed Data Services: ongoing management of data quality, integration, and reporting
- Performance Optimisation: improving agent effectiveness against business metrics
These models create stickier relationships, smoother revenue, and a stronger strategic foothold with your clients. And from what I’ve seen, vendors are increasingly rewarding partners who take this long-term, outcome-driven approach.
Summary
AI isn’t here to replace MSPs – it’s here to redefine them. It’s shifting the focus from managing infrastructure to managing intelligence.
The most successful MSPs in the next few years will be those who can help clients make sense of AI – translating it from hype to business value. They’ll still patch servers and run backups, but that will be table stakes. The real differentiation will come from helping customers use technology, not just own it.
So if your clients are asking about AI, take it as your cue. Don’t just tell them what tool to buy. Help them imagine what’s possible – and position yourself as the partner who can take them there.
Would love to hear what you think. If you have any thoughts or comments, you can contact me HERE.
