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.

💼 All Our Sponsors

Support the vendors who support the show:

👉 https://businessof.tech/sponsors/

🚀 Join Business of Tech Plus

Get exclusive access to investigative reports, vendor analysis, leadership briefings, and more.

👉 https://businessof.tech/plus

🎧 Subscribe to the Business of Tech

Want the show on your favorite podcast app or prefer the written versions of each story?

📲 https://www.businessof.tech/subscribe

📰 Story Links & Sources

Looking for the links from today’s stories?

Every episode script — with full source links — is posted at:

🌐 https://www.businessof.tech

🎙 Want to Be a Guest?

Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:

💬 https://www.podmatch.com/hostdetailpreview/businessoftech

🔗 Follow Business of Tech

LinkedIn: https://www.linkedin.com/company/28908079

YouTube: https://youtube.com/mspradio

Bluesky: https://bsky.app/profile/businessof.tech

Instagram: https://www.instagram.com/mspradio

TikTok: https://www.tiktok.com/@businessoftech

Facebook: https://www.facebook.com/mspradionews

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The Lesser of Two Crab Claws, Part 2