Managed service providers (MSPs) have, with mixed success, been trying to nudge more customers toward value-based pricing models that are designed to benefit both parties. Rather than billing by the hour or charging a flat rate, the goal is to better align the cost of delivering a managed service with specific business outcomes, such as the availability of a mission-critical application.
AI is reshaping cost expectations
However, as more basic IT and cybersecurity tasks become increasingly automated, more MSPs will need to revisit their pricing strategies. While AI has the potential to make MSPs more profitable, it’s only a matter of time before customers conclude that AI-driven services are less expensive to deliver. As a result, MSPs may find themselves under greater pressure to reduce costs—unless they can clearly demonstrate additional value.
Each MSP will need to decide how far and how fast to move ahead of this shift. Some larger providers are already well down that path. DXC Technology, for example, has launched an orchestration platform, DXC OASIS, that infuses AI agents into IT services. While still managed by humans, these services can be delivered more cost-effectively. The platform now sits at the core of what the company describes as a new operating model, priced based on the unique value of each client engagement.
The ongoing challenge of value-based pricing
The challenge, as always, is defining which services deliver measurable business value. One reason many clients still prefer per-user or per-device pricing is that it provides clearer visibility into monthly costs. For many chief financial officers (CFOs), the priority is not just the total cost of a service, but the ability to predict and consistently manage those costs month to month.
AI comes with real costs
Regardless of the pricing approach, MSPs must remind customers that AI is not free. Beyond the necessary infrastructure, there are real costs that come with training and governing AI agents. While those costs may be lower than maintaining multiple Level 1 technicians, they rise as services become more complex and require more advanced reasoning capabilities.
MSPs will need to navigate this carefully. The more complex a task, the more expensive it becomes to rely on AI agents to execute it. While AI doesn’t require time off or healthcare benefits, MSPs must ensure they are not overspending to automate tasks that could still be handled more cost-effectively by a technician earning around $100,000 annually.
Mind the gap between investment and savings
In the meantime, there is little doubt that AI agents will become pervasive across IT services teams. However, the cost of delivering those services will not necessarily decline immediately after deployment. MSPs would be smart to manage that gap carefully—balancing investment in AI with clear, defensible value for their customers.
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