Pax8 Unveils 'Managed Intelligence' Era: MSPs to Evolve in the Age of Agentic AI

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Pax8 CEO Scott Chasin introduces the concept of 'Managed Intelligence Providers' as the next evolution of Managed Service Providers, driven by the rise of agentic AI. This shift promises to transform how businesses operate and compete in the emerging AI-driven economy.

The Dawn of Managed Intelligence Providers

Pax8, a leading cloud commerce marketplace, is spearheading a significant shift in the managed services industry with the introduction of 'Managed Intelligence Providers' (MIPs). This concept, unveiled by CEO Scott Chasin at the Pax8 Beyond conference in Denver, represents the next evolution of Managed Service Providers (MSPs) in response to the emerging era of agentic AI 1.

Source: CRN

Source: CRN

Agentic AI: A Game-Changer for Businesses

Agentic AI refers to AI-powered agents capable of autonomous action and reasoning. These systems are set to revolutionize how businesses operate, particularly small and medium-sized businesses (SMBs). According to Pax8's research report, "The Agentic Inflection Point," 54% of midsize enterprises have already deployed AI, with 83% of high-growth SMBs actively experimenting with it 2.

The Role of Managed Intelligence Providers

MIPs will go beyond traditional IT infrastructure management to focus on delivering agentic transformation and business outcomes. Their key responsibilities will include:

  1. Deploying and managing fleets of AI agents that adapt and act in real-time
  2. Assessing customers for opportunities where AI agents can handle repetitive, slow, or expensive tasks
  3. Providing marketplaces where businesses can "hire" intelligence rather than download software
  4. Building vertical-specific agents to automate workflows
  5. Governing networks of autonomous agents instead of endpoints 1

Democratizing Enterprise-Level Technology

One of the most significant impacts of this shift is the potential democratization of enterprise-level technology access for SMBs. Chasin emphasizes, "The groundwork is being laid for a world where intelligence is as essential as electricity. Those who evolve now will lead the economy tomorrow" 1.

New Business Models and Pricing Strategies

The agentic AI era introduces new pricing models aligned with how MIPs generate revenue. Instead of the traditional per-seat pricing, MIPs can price per agent, action, workflow, and outcome. Pax8's report identifies four primary business models for capturing value in this new paradigm 2.

The Emergence of AI-Built SMBs

Pax8 predicts the rise of "AI-Built SMBs" – businesses that are AI-native from inception, embedding generative and agentic technologies into every facet of their operations. These companies are expected to automate everything from customer service to product development, favoring modular, vertical solutions over legacy software suites 2.

Pax8's Initiative to Support the Transition

To facilitate this transition, Pax8 has launched a managed intelligence toolkit to help MSPs manage, scale, and deploy agentic AI solutions for clients. The company is also building the foundation for the agentic economy, including an agent marketplace, a Model Context Protocol integration framework, and an agentic orchestration platform 2.

Industry Reaction and Future Outlook

John Douglas, president of Pileus Technologies, an MSP based in Wichita, Kansas, views AI tools as allies rather than threats. He encourages MSPs to embrace the agentic AI era and evolve into managed intelligence providers 1.

As the industry stands at this inflection point, Chasin emphasizes the urgency of adaptation: "The rate at which this technology is advancing makes the next 24 to 36 months critical. MSPs that evolve quickly into the MIP model will be poised to experience long-term success in the new paradigm" 2.

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