Managed services is known for spotting the next wave before it crests. Virtualization, cloud, and cybersecurity each created new service lines that separated the early movers from the laggards. Today, AI as a Service (AIaaS, for you acronym lovers out there) is shaping up to be the next big one.
That message was shared by Seana Fippin, founder and CEO of Red Box Business Solutions, and Kelly Stone, co-founder of Ironstone Strategy. The pair were featured in a recent panel discussion led by ChannelPro Executive Director Jonathan Browning. Fippin and Stone emphasized that AI isn’t just hype or a flashy add-on, but a profit center in the making.
So how can MSPs translate AI hype into recurring revenue streams? Here’s a practical roadmap based on the conversation.
Step 1: Start With Readiness Assessments
Every great AI conversation starts with discovery. Fippin explained. “What we’re finding is becoming very lucrative is our AI readiness assessment and vulnerability test. Rather than coming in with a big pitch, slamming people on LinkedIn or any of those tactics, why not bring value? Solicit our clients’ wisdom and their brilliance based on their experience in the market, and what’s going to matter to them today and moving forward.”
Utilize a structured checklist to identify how clients are already using AI — often without realizing it — and where gaps exist. Many businesses don’t even know when employees are introducing tools like ChatGPT into workflows. That lack of oversight creates risks as well as opportunities.
This step is the AI equivalent of a network assessment. It creates a billable engagement, uncovers security exposures, and naturally leads to broader strategy conversations.
Step 2: Package and Price With Intention
One of the toughest challenges for MSPs is figuring out how to price their AI services. Do you charge by the project? Bundle it into existing agreements? Or build high-ticket offerings around custom bots and analytics engines?
Stone laid out the stakes as it relates to what sound AI strategy can mean to valuing your business for an acquisition. “That valuation typically is 4x to 8x your ARR. If you have AI, it could be 32x. So, we’re talking about real money.”
When it comes to pricing, the consensus is that MSPs often underprice their services. Stone advised testing your client’s appetite for AI services before locking in numbers. Survey trusted accounts, float pricing scenarios, and adjust based on vertical demand. “What you can charge is always predicated on what are people willing to pay for.”
Fippin also urged MSPs not to sell themselves short. “Set the price point higher than you would expect so we don’t undersell ourselves, because the value of this is significant.”
In practice, MSPs can mix and match models:
- Project-based consulting, such as Copilot training sessions, policy creation
- Subscription bundles, like monthly AI bootcamps or dashboards
- Custom development, including AI bots, GPT builds, automation engines — often high-margin, enterprise-priced engagements
Step 3: Lean Into Policy and Governance
AI is a Wild West right now, according to Fippin. Clients are experimenting, sometimes recklessly, and the guardrails simply don’t exist. MSPs must step in now as a new kind of trusted advisor.
“There will be a market for people who need AI and proper use policies, and you guys can be those people,” added Stone, predicting a surge in demand for AI governance.
Policies should cover acceptable use, data hygiene, BYOD, and employee training. Fippin compared it to the early internet when the industry was “building the plane while flying it.” Offering AI policy frameworks creates a new revenue stream. In addition, it deepens security conversations, strengthens client relationships, and positions you as the go-to expert on risk mitigation.
Step 4: Show, Don’t Just Tell
For many clients, AI is still abstract. That’s why demonstrations and proofs of concept are so powerful.
“Imagine if you had a dashboard that told you every important number that you need to know updated in real time,” Stone urged. This highlights the need for MSPs to bring data-driven dashboards into client meetings that can illustrate clear value.
Fippin shared her own example: auto retail managers take photos of handwritten notes, upload them to ChatGPT, and get instant digital output. For the client, that simple “magic trick” was an eye-opener. “Something as small as taking a picture … was like, whoa!”
These kinds of quick wins create the “wow factor” that helps clients see AI as an essential part of how they work instead of a buzzword.
Step 5: Find Your Vertical
AI is not a one-size-fits-all solution. Some industries are adopting it quickly while others are slower. MSPs that align their offerings with the most receptive verticals will see faster returns.
Stone highlighted healthcare, where AI is showing it can outperforming radiologists with early-stage breast cancer detection. Meanwhile, Fippin sees momentum in financial services and auto retail. “Companies that are intentional about sales and marketing … are investing in leveraging AI.” Plus, regulated sectors like legal and government create opportunities around risk and compliance.
MSPs looking for success with verticals should seek out businesses with a lot of repetitive tasks or a lot of regulatory risk, they agreed. Both are fertile ground for AIaaS.
Step 6: Avoid the Pitfalls
Not all AI roads are paved with gold. Take, for example, the issue of copyright in AI-generated content. Ownership isn’t always clear.
Stone echoed that caution, using The Walt Disney Co.’s ongoing fight against copyrighted characters being used in generative AI. Her advice: Use AI for ideation and drafting, but don’t pass raw outputs off as finished work. “Beyond the potential legal concerns… it’s authenticity,” she said. “You can spot content generated by AI. I guarantee you.”
This is exactly the kind of counsel MSPs can monetize, she added. Help clients navigate the ethical, legal, and security pitfalls of AI. This ensures that your services are indispensable.
Step 7: Plant Your Flag Early
If there’s one message MSPs should take away, it’s urgency, according to Stone. “We are at the edge of a mountain range. Each and every one of you have the opportunity to be the first to that mountain and plant your flag.”
The barriers to entry right now are low, requiring training, packaging, and framing services you already provide. The MSPs who wait, however, will find themselves competing with peers who have already claimed the territory.
Conclusion
AIaaS is a tangible, monetizable offering today, and your clients want it.
When done right, MSPs can help clients improve their revenue, decrease their expenses, and strengthen their bottom line. Start with readiness assessments, price your services with confidence, help clients build policies, and demonstrate value through dashboards and automation. Focus on the industries most ready to adopt, and stay ahead of the pitfalls.
As Fippin reminded the ChannelPro audience, “There is real money in it”. The only question is whether you’ll claim it first.
As ChannelPro’s online director and tech editor for over a decade, Matt Whitlock has spent years blending sharp tech insight with digital know-how. He brings more than 25 years’ experience working in the technology industry to his reviews, analysis, and general musings about all things gadget and gear.
