Howard M. Cohen, a seasoned expert in the managed service provider (MSP) sector, discusses the current state and future potential of artificial intelligence (AI) for MSPs. He highlights that while adoption rates are still low, with only a small percentage of partners and customers fully integrating agentic AI, there is a growing interest in practical applications. Cohen emphasizes the importance of moving beyond the hype surrounding AI and focusing on real business tools that can enhance service delivery and client engagement.
Cohen shares insights from his experience, recalling the excitement of the early days of personal computing and drawing parallels to the current AI landscape. He notes that many discussions around AI lack depth and practical understanding, urging MSPs to seek out genuine applications that can drive results. He cites examples of MSPs successfully implementing AI solutions, such as virtual agents in boutique hotels, which demonstrate the tangible benefits of AI when applied thoughtfully.
The conversation also touches on the challenges MSPs face, including data security, compliance concerns, and the need for internal expertise. Cohen argues that MSPs should take a consultative approach, engaging with clients to understand their business processes and identifying opportunities for AI integration. He believes that by focusing on practical applications and outcomes, MSPs can better position themselves in a rapidly evolving market.
Finally, the discussion shifts to the implications of changing pricing models in the AI space. With a significant increase in per-use pricing among AI software companies, Cohen warns that MSPs must be prepared to define what constitutes usage and outcomes clearly. He stresses the need for MSPs to adapt their service offerings and pricing strategies to align with these new models, ensuring they can deliver value while navigating the complexities of AI integration.
About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.
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