MSP Pricing Models Are Changing: How AI Is Reshaping Managed Services

AI is changing how managed service providers operate. Tickets that once required a technician can be resolved automatically. Repetitive tasks run in the background. Workflows that used to take hours can happen in minutes.

But as MSPs become more efficient, a bigger question emerges: Should customers pay less when AI makes service delivery less expensive?

Some customers will expect lower monthly fees. Competitors may use automation to offer cheaper services. But lowering prices isn't the only option. AI also gives MSPs opportunities to expand their offerings, build recurring revenue, and deliver more value without adding headcount at the same rate.

In a conversation with Vance Townsend, founder of Rarity Solutions, we explored how MSPs are approaching AI adoption and what it means for the future of managed services pricing.

How Does AI Affect MSP Pricing?

AI reduces the manual work involved in delivering IT services, but that doesn't necessarily reduce the value customers receive.

Customers aren't just paying for tickets to be resolved. They're paying for reliable systems, security, compliance, strategic guidance, and support that keeps their businesses running.

AI can give MSPs more time to focus on those higher-value services. The challenge is making that value visible.

If customers only see fewer tickets, they'll naturally question why their monthly bill hasn't changed. MSPs need to demonstrate how they're using that efficiency to provide better support, more proactive service, and stronger business guidance.

The conversation needs to move beyond ticket volume and technician hours.

What Are the Best Pricing Models for AI Services?

MSPs have three primary options when deciding how to charge for AI implementation and ongoing support.

1. Project-Based Pricing

Customers pay a one-time fee for a defined AI implementation or automation project.

This works well when the scope is clear, but it can leave MSPs absorbing the cost of ongoing maintenance, updates, and troubleshooting after launch.

2. Bundling AI Into Managed Service Packages

MSPs can include AI capabilities in existing service tiers. This makes AI easier to introduce and can help differentiate packages.

The risk is leaving the scope too open-ended. Unlimited automation development and custom integrations can quickly become expensive if they're included in a flat monthly fee.

3. Recurring AI Services

A separate monthly fee for AI services gives MSPs a way to charge for ongoing management, maintenance, and support.

This is the approach Vance said Rarity Solutions has settled on after experimenting with other models.

AI projects don't end at implementation. Applications change, integrations need attention, and customer processes evolve. A recurring service accounts for that responsibility instead of leaving MSPs to handle additional work without compensation.

There's no universal pricing model for every MSP. Project fees, bundled capabilities, and recurring services can all make sense. What matters is making sure the price reflects the work involved.

Why Should MSPs Charge Recurring Fees for AI?

One of the biggest pricing mistakes an MSP can make is treating AI as a one-time project when the customer expects ongoing support.

Imagine building an automation that connects a customer's accounting platform to another application. Everything works when it's delivered. Then the customer changes its process, an application updates its API, or the automation needs a new exception.

Those changes take time.

If ongoing maintenance isn't included in the agreement, small requests can turn into hours of unplanned work. MSPs should establish clear support boundaries, maintenance expectations, and pricing before implementation begins.

AI services need to be treated like services, not just projects.

How Can MSPs Price AI Without Losing Money?

The technical implementation is only part of the work. MSPs also need to understand the customer's business.

As Vance explained, mapping business processes can be more difficult than building the automation itself. Before scoping a solution, providers need to understand how information moves, who is involved, and what exceptions need to be considered.

This discovery work should be reflected in the price.

It also creates opportunities for account managers to identify customer needs beyond traditional IT support. Repetitive tasks, inefficient workflows, and recurring service issues can reveal opportunities for automation.

MSPs should also establish clear ownership. Account managers can identify opportunities, leadership or vCIOs can scope solutions, and technical specialists can handle implementation and ongoing support.

Without defined responsibilities, AI projects can quickly become another source of unplanned service desk work.

Can AI Create New Revenue Opportunities for MSPs?

AI doesn't just change how MSPs price existing services. It can expand the types of customers they serve.

Rarity has been exploring a zero-touch service desk model for businesses that don't need a technician involved in every interaction. Customers access a defined set of automated services, with security controls and escalation paths for requests that need human support.

This could make managed services more accessible to smaller businesses that can't afford traditional support packages.

For MSPs, the opportunity is to build offerings around different levels of support and automation rather than trying to fit every customer into the same package.

Rethinking the Future of MSP Pricing

AI will make parts of managed services less labor-intensive. Customers will notice, competitors will respond, and MSPs will need to rethink how they package and price their offerings.

But the answer isn't automatically to charge less.

MSPs need pricing models that account for implementation, ongoing support, and the business value they deliver. Those that get this right can protect margins while creating new opportunities for recurring revenue.

AI is changing the economics of managed services. It's time for MSP pricing to catch up.

See How Thread Helps MSPs Work Smarter

Building a more efficient service desk is one way to put AI to work. Thread's AI Service Desk helps MSPs automate routine ticket work, streamline triage, and give technicians more time for higher-value tasks.

Explore AI-powered ticket triage and the Thread Inbox to see how AI can fit into your service delivery.

Ready to see what that could look like for your MSP? Book a demo with Thread.