AI’s impact on what managed service providers charge was a dominant theme at the Global Technology Industry Association’s ChannelCon EMEA in London, an event that drew a record 800 registrations. GTIA CEO Dan Wensley described himself as a “pure optimist” on the topic, but several MSP leaders expressed deep concern about how new AI tools will reshape the sector’s pricing model.
We met seven MSP leaders at the show to ask how the onset of new AI tools might change what they charge. Start Tech managing director Ian Groves warned that AI efficiencies could undermine the long-standing headcount-based pricing model and prompt an industry shake‑out.
AI and the end of headcount-based pricing
“We’re going to get more efficient — that’s great. But when we can do more, the expectations will be that we just do more and it’s a given. Because if we’re all going to do more, there’s no differentiator or advantage there,” Groves said, arguing that customers are already starting to do tasks themselves because “they don’t need us.” He warned bluntly: “We are under threat as a species.”
Groves recounted a practical example to illustrate the speed of change: one of his technicians gave a new AI model access to his PC after it blue‑screened, and the AI “repaired his PC faster than he could. He came in the next day and was like, ‘we’ve got a real problem’.” That experience, he said, shows how quickly capabilities are arriving that reduce reliance on human technicians.
He highlighted a core tension for MSPs: “Bear in mind, what’s the unit MSPs sell? Headcount. We sell per person per month. Yet all of our marketing says we can lower your headcount by selling you AI efficiencies and outcomes — we’re killing our own currency.” If AI makes delivery abundant, Groves asked, “do you need 10,000 MSPs in the UK anymore? I think it’s an unanswered question.”
Predicting significant change, Groves said: “I think we’re going to see a lot of MSPs fall away. I think we’re going to see a lot of them die through natural selection, quite frankly.” That prospect, he added, is why he attends many events — to hear different ideas and to reinforce the need for collaboration.
Groves argued MSPs must relearn how to design outcomes rather than rely on legacy bundling: “No-one knows how to build an outcome. I actually think we’ve lost some of our imagination and creativity as MSPs to think and solve problems.” He invoked a point made earlier at the event by Scott Barlow — that it took the industry 10 years to learn how to sell managed services — to underline how disruptive the new rules could be and why peer sharing is essential.
