Harnessing AI for Managed Services: Strategies for Success

Artificial Intelligence is everywhere right now for good reason. It’s the new hotness in the IT and business world. MSPs (Managed Service Providers) are no exception. Everywhere I turn, I hear conversations about how MSPs should be using AI. But here’s the problem: most of those conversations skip over the actual strategy.

It reminds me of the “underpants gnomes” from South Park:

1. Collect underpants
2. ???
3. Profit

That’s how a lot of MSPs are thinking about AI:

1. Use AI
2. ???
3. Make money

The reality is that AI has incredible potential for MSPs. It should include reducing costs, improving efficiency, and creating new revenue streams. But without a clear strategy, it’s just another shiny object. Let’s break down three ways MSPs can actually harness AI and turn it into a meaningful part of their business.

Step 1: Using AI Internally

The first step isn’t about making money, it’s about running your MSP more efficiently. AI can streamline daily operations and free up your team to focus on higher-value work. A few practical examples:

• Automate repetitive tasks – From scheduling to data entry, AI can take busywork off your team’s plate.
• Script writing – Let AI help you build scripts that you can deploy through your RMM tools.
• Ticket intake & triage – AI can assist in categorizing tickets, reducing noise, and getting tickets to the right tech faster.
• Tech support augmentation – Equip your engineers with AI-powered copilots to help them troubleshoot common problems more quickly.
• Ticket data mining – AI can query past ticket history in plain language, helping your team learn from prior resolutions (as long as your data is clean). I would have loved this when I was at my former MSP.

Pro tip: don’t go all in on ten AI tools at once. Start small. Choose one or two areas where you can make the biggest impact and build from there.

Step 2: Establishing Thought Leadership with AI

Once you’ve built confidence using AI internally, the next move is leveraging it to grow your business by positioning yourself as a thought leader.

Clients and prospects are curious about AI, but most don’t know where to start. That’s where you come in. Here’s how I’d use AI to build my thought leadership muscles:

• Host workshops – Offer free sessions for awareness, and deeper paid sessions for hands-on learning.
• Run webinars – A 30-minute introduction can naturally lead to a 2–4 hour paid training workshop.
• Target industries – Tailor sessions for verticals like legal, medical, or manufacturing.

By educating your clients, you’re not just helping them adopt AI—you’re building trust, authority, and credibility. That makes it far easier to open doors for new projects and upsell existing services.

The key here is educate first. You aren’t pitching when you’re educating. Teach your attendees skills that they can put into practice in their business without your help. Then let them know that if they want to take it even further they should reach out to you. Spend 95% teaching and 5% pitching after you’ve taught them something useful.

Step 3: Delivering Business Consultative AI Solutions

This is where the real revenue potential lies: using AI to solve actual business problems for your clients. Knowing your clients well and having a clear target client profile is vital to make this a repeatable offering for your MSP. All roads lead back to Target Client Profile for good reason. When you know your verticals execution is more straightforward.

Think beyond IT support. Ask how your clients make money, where they’re wasting time, and what their biggest pain points are. Then look for AI solutions that align with those goals. Some possibilities include:

• Reducing headcount or overtime by automating manual tasks.
• Freeing up employee hours with process improvements.
• Increasing revenue by optimizing client-facing processes.

Here’s where your pricing model can also evolve. Instead of billing for hours, you can structure outcome-based pricing. Think in terms of licensing fees tied to cost savings or revenue growth.

The key is measurement. Always capture a baseline before implementation so you can prove the results afterward. That makes your value crystal clear. You want as clear evidence of the benefit of your work as possible.

Final Thoughts

AI isn’t a magic wand. It’s a tool. Like any tool, it only creates value when applied strategically. For MSPs, the winning formula is clear:

1. Start internally by driving efficiencies.
2. Educate your clients and position yourself as a thought leader.
3. Deliver consultative business solutions that generate measurable outcomes.

Do that, and you won’t just be “playing with AI”, you’ll be building new revenue streams and deepening your client relationships.

If you found this helpful, subscribe to my channel and join my newsletter. I’ll continue breaking down practical, business-focused ways MSPs can grow and thrive with AI along with plenty of other MSP related content.