AI agents: how MSPs define value beyond vendor features — Howard Cohen, Agentic MSP

A structural gap persists between the promotion of AI solutions and their demonstrable, value-based adoption within the managed services sector, resulting in unclear accountability and risk of misaligned incentives. Vendors such as Microsoft and Anthropic push seat-based AI sales (e.g., Copilot, LLM services), but few MSP-led case studies exist to verify real client impact. Most reported usage centers on basic, assistive functions—despite a marked increase in AI discussion among MSP communities.

The most notable finding is the disparity between AI licenses sold and those actively used, with implementation typically limited to automation of simple tasks such as email drafting or meeting summaries. According to analysis and peer reporting, meaningful MSP-led successes are rare, and nearly all documented results reflect either vendor-supplied examples or internal, non-client MSP automation initiatives.

Further supporting evidence highlights concerns around increased reliance on external vendors, lack of outcome measurement standards, and rising operational complexity. MSPs are experimenting with replacing SaaS tools by building their own AI-driven solutions, yet unresolved legal responsibility—especially for autonomous agents—and evolving security threats complicate adoption. Vendors have accelerated AI feature rollouts and moved to consumption-based models, heightening the risk that features are resold without ensuring measurable client value or manageable costs.

Practical implications for MSPs include the need for stronger governance, proactive risk management, and clearly demonstrating value delivered, rather than focusing on license volume. As manufacturers prioritize consumption models, managed services providers face contract risk and potential liability if promised outcomes are not met. Strategic focus should be on internal testing, outcome-based measurement, and identifying small process improvements that directly benefit clients and can be shown to reduce cost or improve efficiency.

 Supported by: 
WebPros(CometBackup) 
HaloPSA
Pax8

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.

💼 All Our Sponsors

MSP Radio is supported by our partners:

ABC Solutions · CometBackup · Firetail · Guardz · HaloPSA · LogMeIn · Mailprotector · Oveka · Pax8 · Rythmz · ScalePad · TimeZest · Transit AI

Supporting the IT services community throu