From managed services to managed intelligence

The AI revolution is no longer just hype but a practical, transformative force reshaping how all businesses operate, including SMBs. While media conversations are saturated with the promises of AI, many organisations are, at best, still stuck in the experimentation phase, struggling to move from simple tools to truly intelligent, agent-driven workflows. At worst, organisations are overwhelmed and paralysed by information. 

With global AI services spending projected to reach $644 billion and SMBs reporting up to 40% cost reductions from agentic automation, the market is at a tipping point. Only those MSPs who act now, adopting a structured, outcome-driven approach, will ride the wave of evolution.

At Pax8 we have looked closely at how AI is reshaping the IT channel, and what this means for our partners, and every MSP ready to evolve. We’ve explored the new services MSPs will have to offer, alongside the technologies and skills required to enable them.

Throughout this process, we have asked ourselves a simple question – if MSPs start delivering intelligent, outcome driven services powered by AI, are they still MSPs? We believe not. Instead, the future is about Managed Intelligence Providers, and we’re here to help our partners transform.

Transformation is the point where an MSP stops thinking like a technology provider and starts operating as a strategic intelligence partner, positioning every engagement around measurable outcomes, vertical expertise and long-term value.

So, what do MSPs need to know, and what actions do they need to take?

The Agentic Economy: What’s changed and why does it matter?

As a first point of call, MSPs need to understand The Agentic Economy, and how it’s already reshaping how business gets done. SMBs are entering a new era; one where growth is no longer constrained by labour costs. Instead of hiring new employees for every function, or buying more software tools, they are now deploying AI agents that provide fractional access to expertise once out of reach. For example, voice agents to answer customer calls, compliance agents that monitor PII or financial workflow agents that reconcile the books in real-time. 

By adopting these agent-driven workflows, SMBs are reducing costs, expanding capacity and achieving outcomes that were once reserved for enterprises. When an eight-person consulting firm can deliver what once required 50, the economics of professional services shift overnight. Smaller firms gain the advantage by being agent-augmented from the ground up; lean, adaptive and able to scale expertise without the bloated overhead.

The role of the MIP is to bridge the gap between use of agents as ad-hoc tools, towards the creation of structured, scalable deployments where intelligence is embedded into everyday workflows.

The Playbook: Five simple steps to transformation

At Pax8 we have developed a pragmatic, phased framework for transformation, the Pax8 Managed Intelligence Provider Playbook.

Phase one is ‘Transform,’ starting with your own business as ‘customer zero,’ to prove the model from within. From there, start shifting the conversation outwards – asking your customers what their biggest challenges are, applying intelligence to solve them, alongside delivery of measurable outcomes. Pax8’s partner, fast-moving MSP, LeafTech, took this approach, rolling out custom Copilot agents. The adoption took place in phases, allowing time to develop use cases and refine best practices. The company saw ROI in six months, with time spent on client follow-up tasks reduced by a staggering 75%. An estimated £120,000 was saved via reduced time spent on customer deliverables.

The next phase is to ‘Buy’ in line with your client needs, sourcing solutions from across the full spectrum, e.g. AI-enhanced SaaS, agentic workflows and digital labour.

After this, ‘Build’ proprietary, repeatable agent-based workflows across both horizontal and vertical BPOs (business process outsourcing processes). Developments should solve common problems and drive consistent, scalable results.

Next, you need to ‘Sell’ – allowing for flexibility in your offering and matching the right monetisation model to the right customer. Move beyond seat licences towards monetising with outcome-based pricing, subscriptions, and bundles.

Finally, ‘Manage’. Deliver ongoing optimisation and governance across every agent and workflow, ensuring resiliency, uptime, security and compliance. Full lifecycle management ensures the reliability of solutions, safe and aligned to customer needs – locking in recurring value for clients.

Unlocking new revenue streams: Monetisation for the AI era

The AI revolution opens new potential revenue streams for MSPs, which are the catalysts behind the evolution to MIP. Agents aren’t just tools to deploy but services to sell.

Look at opportunities to charge advisory or consultancy fees, reframing the value you offer from break-fix and traditional managed services towards business outcome orchestration. You’re no longer a service provider reacting to client needs but an intelligence partner that proactively shapes outcomes through AI agents.

Think about training and enablement programs to build client confidence with agents, internal communications playbooks to align staff and reduce resistance to adoption, and workflow redesign consulting to ensure agents integrate smoothly into day-to-day operations. 

Further monetisation opportunities include margins on agent resales, when sourced from multiple vendors, and deployment/configuration fees layered on top of agent procurement.

Offer subscriptions based on customer needs, such as outcome-based or recurring Intelligence-as-a-Service (IntaaS) models, to showcase long-term value. For example, if you can demonstrate that you’re saving a client £100K annually, a monthly £2,000 fee will be an easy ‘yes’.

Getting started, somewhere: Practical first steps

With any necessary transformation, it can be difficult to know where to start. For those MSPs feeling stuck, we suggest taking four practical steps.

First, run an AI readiness assessment of your own organisation, calling on third-party tools and resources, such as The Pax8 MIP Playbook, to create a framework. Following this, identify one high-impact process to automate, take the time to embed it, and measure its success.

To then engage your clients, host a vision workshop that brings to life your new offerings, and their value, tailored to individual needs.

With everything, start small, measure the impact, and then expand.

In conclusion: The time to lead is now

When it comes to the AI revolution, the window for first-mover advantage is open, but it won’t stay that way for long. The question isn’t whether your clients will demand intelligence but who they’ll trust to deliver it. Now is the time for MSPs to step up, embrace the change, and help shape the future of managed services.

The shift from MSP to MIP isn’t just a technical upgrade, it’s a fundamental change in how MSPs create value for their clients. As AI agents and intelligent automation become the new standard, MSPs that act now will set themselves apart as trusted partners in their clients’ growth journeys. They must play the role of trusted architects, integrators and monetisers of the AI-powered future. 

By following a structured, outcome-driven approach, MSPs can move beyond simply managing IT to delivering measurable business results. The Pax8 MIP Playbook offers a practical roadmap e.g. start small, focus on real outcomes, and build from there. With the right mindset and tools, any MSP can become a leader in the agentic economy.