What is an AI Transformation Partner? (and how to become one)

So, what is an AI transformation partner and how can you become one? Uh, that's the topic of this video. Um, if you've been watching my videos recently, there's been a lot of talk about this AI transformation partner model. And in this video, I just want to kind of lay it out um in all its glory and clearly communicate what it is, how we got here, how I've transitioned my agency, Morningside AI, into this new model, why I think it's the future, and why we're placing our bets so heavily on it. And as I said, most importantly, how you can start to one, if you're completely new to AI business and you're just sort of getting into this thing, how you can work your way towards becoming one of these partners and really betting on the best opportunity for AI services long term, or if you're an existing AI agency or automation agency owner, how you can start to transition towards this and the exact steps that we've taken in order to get there. So, uh, it's kind of the final evolution of AI agencies and, uh, the most sustainable one for the next few years as far as I can tell. I made this cute little slideshow for us uh just to support me on the visual side. So, so what we're going to be covering um a bit of info on Morning Side AI, my agency and so sort of why you should listen to me, a bit of proof about what we've done and why this model is sort of uh feasible given what we've done over the past 6 to 8 months. The premise of this video is that I'm going to show you this model, explain it to you, the key steps, the key deliverables, uh the kind of services you can provide to businesses and why there's such a big opportunity behind it. And then the plan for this video is to start off by clearly defining what this model is, the deliverables, uh talk about how we got here, the market opportunity behind it, and of course, how to start your own. So, let's get into it. So, what is an AI

transformation partner or AITP? The definition that I've given it here, um I think this is the best one that I could get for properly encapsulating what this new model is and what it means for us as service providers and also to our clients as well. So an AI transformation partner is an AI service provider that specializes in guiding organizations through comprehensive AI adoption, handling strategy, implementation, education, and ongoing management as an integrated offering. So this includes AI strategy. So process mapping, we're going to be touching on this a little bit later. And I've also got a whole video dedicated to this that I'll be able to direct you to, but AI strategy in terms of process mapping, figuring out how the business operates, what the key value engines are, uh driving the business forward, and AI opportunity identification to solve some of the bottlenecks using AI within that. So the strategy component of identifying what their uh highest points of leverage for AI implementation are. And then we have AI development which is the building of those systems. So as a transformation partner you will offer the AI strategy aspect but also then the development off the back of that which is really where it starts to get super exciting because you make money on the front end of the AI strategy and the audits which I'm going to touch on in a second. And then you also do the development for them based off what you've prescribed for them. So that can be custom AI systems, but it can also be identifying, hey, there's a handful of AI tools that are already out there that you can plug into your processes in this way. We can help you to get this plugged in and just get some quick wins for you. And AI education is also a massive part of it. Uh we're finding through our the projects that we're doing at Morningside that there are the major vast majority of companies are still at the freaking starting line with the stuff. like you think it's getting saturated cuz there's all these people talking about it now but there is just an enormous like 95% of businesses out there that are still on the first step or haven't even taken the first step because they don't even understand what AI is. So we've found that uh workshops uh particularly for leadership teams of the companies you've worked with uh super helpful just bringing them all up to speed on okay what is this technology what is generative AI what are its strengths and weaknesses um in AI education of course is also training up the teams and you can upskill their team so that they can get more productivity out of those teams that's another sort of whole video in itself and then there's the ongoing management and partnership aspect of it which is where the partnership AITP uh comes in which is the long-term strategic guidance optimization and continuous improvement that you can offer as a strategic partner after you've gone through the strategy and training up of the teams and the development and deployment and ongoing relationship where you can keep them on the front foot and not just sort of leave them to go f for themselves and there's a whole bunch of other like getting their own AI talent embedded in their business creating their own AI innovation engines within them. There's so much you can do longterm with a company if you've done all the right sort of prerequisite steps. So, and so the AI transformation partner model is not just development like the AI automation agency or uh AI agency model has been traditionally. It's not just consulting. It's not just an AI consultancy firm. course or education program. It's all of them tied together to be able to give a full service offering to your clients and take them from literally the first step in the AI journey to they are a leader in their industry and you're just giving them sort of updates on how they can stay at the front foot of it. So it's a much bigger service offering as you can tell and there's a much greater portion of businesses who are more attracted to that than a kind of peace meal offering where it's like hey I'll just build you this little thing for you but know they want to have someone to guide them through the whole process because there's so much stress and and nervousness around the topic particularly. So the model is based around three phases and this is

a living breathing uh model essentially as we're continuing to refine what this means as an AI transformation partner at Morningside. Um but as it stands currently what our process is with our clients is the firstly the discovery phase. So that's the AI strategy and consulting. Uh as I said the process mapping figuring out the value engines. I'll put a little thing up on screen of a screenshot from one of our clients projects. We have to map out okay what's your delivery process? What's your acquisition process? What's your customer support process? How does everything work in the business? And as a as an agency once you have it all figured out and map you can actually have a chance at properly diagnosing what the problems in the business are and you probably have a better idea of how the business runs and even the business owner in many cases. So it's very valuable to have it all mapped out because then you can prescribe the right development solutions and find the right bottlenecks. And this is done through uh many interviews with staff members, key staff members. We do between sort of 20 to 30 interviews with people in the companies that we work with in order to map this out and figure out where they are one just how the business works but also where the bottlenecks are. So off the back of those process maps, then you will do AI opportunity identification and figuring out okay given what we know now, where are the bottlenecks? what tools can we apply here or what systems can we build around it to maybe cut some of the time down here, reduce the amount of labor needed to do certain tasks and also incorporated into that discovery phase. We find it super helpful to do a an introduction to AI workshop particularly for the leadership team as I've discussed before to get them on the same page of what this is what the technology is, this is what it does. Um, and then you can start to have actually an intelligent conversation and it sets you up later down the line for we are we understand this stuff now. We see that you've mapped it out. You see that you understand our business. We're going to take your recommendations of what you say to do in these AI opportunities that you've identified. This is why we're going to move forward with it. So, it's really bringing everyone on the same page so that you can actually have a productive discussion around AI within their business. Once you've mapped all that out and you have your recommendations for the systems they should apply, the quick wins and the sort of bigger swings that they can do later on as well. Then there's the implementation phase which is what you traditionally consider a your AI agency development process, right? So you'll go into your custom development or it might be as I said implementing existing tools into sort of uh existing workflows and also in the implementation phase we'll loop in uh team training and capability building if they need that as well because there's a lot of innovation and productivity improvements that can come from the bottom up. We see it as kind of a top down is the discovery and strategy where you figure out how the business works. You can pass through leadership team. These are the big initiatives that we need done. But if you just train people with the right skills on how to use HVT or complexity or how to build basic automations on make and use AI within it, then the people who are doing the day-to-day, they can identify many more opportunities to innovate from the bottom up. So you kind of attack it from two angles and that's when we see the best results for our clients. And then the final phase in this model is of course the ongoing partnership and long-term strategic guidance. you end up building these awesome relationships with your clients because you've taken them from zero to where they're now implementing systems that are really making a meaningful difference and giving them an edge in the market. We are testing different ways of doing this partnership and ongoing model whether that's like an annual fee where they pay you sort of 30 $40 $50,000 for a year and that includes quarterly check-ins and consulting or it's helping them to sort of be accountability partners. This is still part of the model on the end of it where we are refining how we do it. The specific offer that gives the most value to the businesses while being the making the most business sense for us.

So, what makes this different from the stuff that I've been talking about here on this channel for nearly the past 2 years now? It's that you have the traditional AI agency having this more like, okay, what do you want to build? They kind of come to you. It depends on how your acquisition system is set up for your agency, but in my case, I make YouTube videos and we get leads for Morningside through these videos. And they come to us in most cases knowing what they want. Uh, but more and more as we start to talk about this and we've rebranded our agency to say that we're not just development. We do all of the above. Um, now we get a lot more leads like 30% of our leads are coming in for educational consulting as well. And that sort of feeds into the development long term. Uh, but most cases you're going to have people coming to you or you're going to them and saying, "Hey, I can build this for you. " Or they're saying, "Hey, I want this built for me. Can you do it? " So, here's a chatbot. This is going to take 2 months and it's going to cost 30K. Um, and that's sort of the traditional AI development or at least a general AI development company or AI agency's model versus the AI transformation partner which is like here is a complete transformation that we can offer you. We do everything. We want to take you from uh we want to be working with you for 12 months or more and we want to be there for you every step of the way through your AI transition. So this can be starting off with 50k initial consulting as I'm going to touch on later, the kind of uh ticket sizes that we're doing these consulting gigs for. And that can lead on to maybe $200,000 as you'll see in a second worth of development. And then beyond that, you can have a 50k per year uh retainer for just consulting or even uh a bit of development retainer in there as well. Um that's still a model as I said that we're experimenting with and figuring out what the best price point and what the best uh sort of time frame for it is as well. But that's a difference. It's a from a discrete development project as an AI agency to being hey we want to manage your entire AI transformation from the very start getting everyone on the same page to implementing it to training your teams to getting this to a point where you have your own internal AI engine for coming up with new ideas internally how to roll them out how to manage the development internally as well. So that is really the long-term vision for it as well. So how do we get here? a bit of context um so that you know how we sort of came to this realization and why you should maybe listen to me because I've been down something that many of you are probably going to go down in the near future. So um three-stage evolution

of this model. Uh if you guys have been watching me for a while, you know that uh back in 2023, I came up with the AI automation agency or AAA model. And that was through Morningside AI when we realized that we could uh use low code and no code tools to help deliver some of the more simple AI automation based kind of chat bots and automations that we're building. rather than charging 15k for a customcoded uh rag based chatbot, we could go onto a no code platform like voice flow or in the early days was botress uh to build solutions for clients and really lower that price point and lower the de of difficulty for us as well. So that's really the starting point and I've always said that the AI automation agency with particularly the low code and no code stuff. It's the on-ramp. It's for the people who are nontechnical but want to be able to get into AI, build businesses. It just eases you in very slowly because you can start off with super basic automations with a couple little AI splashes inside them and gain some experience, get your hands dirty with building AI for businesses, implementing it, seeing the challenges, talking to businesses and it's just a gradual process that eventually you can move into the AI agency model which is I define the AI agency more so as a traditional AI development company where you would say we have uh the capabilities for building full stack applications like at Morningside we transitioned out of the AI automation agency model into the AI agency when we started to build full SAS platforms for our clients. So that was when we first started getting our first 100k plus deals and they're much more advanced but you're bringing in using the cash flow you get from the more basic projects you're using them to fund full-time developers who are capable at full stack and also AI engineers so that you can make these much more valuable and comprehensive uh deliverables for your clients. So 2023 was just starting off in that low code side. And as you can see here, this was my video that kind of kicked off the whole AI automation agency thing in June of 2023. And that's me talking about what is an AI automation agency. And here we are 2 years later talking about uh what an AI transformation partner is. So um we might be looking back in uh in a few years and I'll be putting up a screenshot of this video. You never know. And I hate to say it, but I was right about that one. I've been screaming from the freaking rooftops for years, for the past two years, trying to get people into this and saying that this is the on-ramp into the AI space and so many of you have taken action on it and like I'm so grateful that many of you have it and gotten a slice of the action. And my point is that this is the next thing that I see as the future of this AI business space. So, please just take it quite seriously cuz I wouldn't be making this sort of big proclamation if I wasn't deadly serious about where I think this is going. And I've touched on in a previous video about sort of Claude and NA10 and and you've got Bolt and Lovable and these sort of things commoditizing AI development and this AI transformation partner where you have a significant portion of your value coming from uh education and consulting is the way to survive over the next few years as a AI service provider or AI agency because you're not going to be commoditized out of that development part. So final step on here the 2025 model is the AI transformation partner or AITP and that's strategy plus development and partnership and education in there as well and it's a complete business transformation. So I hope you can see those different stages of uh sort of AI service based businesses and how the AI automation agency has that low code on-ramp uh that allows you to get into these bigger things start generating revenue start getting experience and ultimately getting into this final form of the model which is much more profitable long term. So why each of these evolutions happen? Um as some of you may know the AI automation agency when you're doing low code automations and stuff like that uh you're limited in terms of the ticket size right depending on if you find a really great use case but generally you're going to find it hard to charge 30 or 50k for some no code automation. So you need to be doing either having a niched offer where you're saying I sell this system for 5 or 10k and I can deliver it to tons and tons of clients. Um, and then you have a bit more of a scalable model. Or you can move into the AI agency model where you are hiring say full stack devs or getting a bigger, more capable development team and you can offer much bigger deliverables for your clients like full SAS platforms and charge like we were able to do over $100,000 for a single project. And we've done that multiple times now. And the bar actually for coming on as a client on development for us is about 100K now. It used to be 10 and just keeps going up as you get bigger and bigger. But the problem with the AI agency, as many of you have probably encountered, is that you get these very, very long sales cycles as you start to say sending out $100,000 proposals. Businesses are a lot more sort of hesitant and being like, "Oh, I barely know these guys. I'm about to sign away this big risky AI project with them. " And, you know, there's a lot of uncertainty and you need to build a lot of trust in order to get to that point of getting a deal over. So, you become a victim of your success essentially in that because the ticket size is higher, there's more resistance and more trust needed. Um and that's what we found is that the length of the sales cycle which has become so long and you're sending out all these proposals but when you do get them it's like ah okay great now we've got something here and with AI agencies another problem is that as you are dealing with the development ready portion of the market we're going to touch on in a second the technology adoption life cycle which I've talked about extensively on this channel and I'm going to talk about it again today because it's so damn important but you're only really accessing that little bit at the end of the market where they are ready for AI implementation right now they're ready to start spending they know what they need and there's only a very small portion of businesses right now who are at that stage. So your potential market as an AI agency doing just development is just a little shred of the market. And that's what we've really this is why I'm making such a big deal out of this now because this model that we found the transformation partner allows you to tap into a much bigger portion of businesses who are not being served right now. And so the solution to the AI agency problem is adding in this education and consulting that allows you to essentially extend the sales cycle and have this like 4 6 week sales process which is actually a paid consulting gig and just ease into it which we're going to go into in a second but and yeah as I said the market challenge is that there's limited people ready for AI development which is a late stage form of AI readiness and the solution is to tap into a much broader market with education and strategy services first. Right. Bit of case study

and proof. See I'm not talking out of my ass. uh Asma Steel, our first uh consulting gig, it was an 8week free audit. And I'm putting my sort of money where my mouth is or follow my own advice here because I always tell you guys to be willing to do stuff for free. And that's really what many won't do. And that's why many won't succeed because we had to put up $30,000 of our own money uh in terms of paying for my consultancy team that we were spinning up uh in order to do this 8week audit of them full-time working on this audit for a company for free. And we got this through warm connection. Again, I always say warm connections are great ways to get your first clients. For us as Morningside starting to offer consultancy, we pulled all the warm strings and warm connections we could and landed this and did a full 8week audit with them, which I can do a full breakdown of in a future video. I'll put some of the slides up on screen now so you know that I'm not talking out of my ass, but we had a huge number of interviews and workshops and like a gigantic final deck of recommendations and stuff. So uh but that ultimately despite the 30k and the hole uh led to a pipeline as I'll put up on the screen here of 250k in development deals and recommendations and also referrals to other people saying hey these guys absolutely crushed it on this AI consulting they did for us in this audit we highly recommend them as well. So not only did we get all of these development deals directly in the pipeline for them for us to work on for them but we got a ton of referrals as well for other consultancy gigs. So this 30ks is already paid back many times. Um, in this case, you can see a clear 8. 3x uh ROI just on the development pipeline alone. So, the lesson for us here was that consulting creates massive development opportunities through the recommendations you make and because they already trust you and they already sign on the dotted immediately because you've taken time to understand their business and then they're like, you're like, well, you need these things and this these are the quick wins that are going to give you quick results and these are the big swings that are going to take a bit more investment. We'll start with the quick wins. Here they are. Here's how much it's going to cost. Let's move forward. And it also allows you to sell to businesses who are not ready for development. And so what we learned with Asmus is that there's these pretty big companies. These are $200 million a year uh 200 people as well and they were just not making any moves on the AI front because they just did not know where to start. And so companies are looking for saviors like us to come in and say we can help you do this whole process. Let's start with a discovery. Let's start helping you through this. And they have budgets to spend on it and they have boards breathing down their neck saying what are you doing on this AI thing. So uh this has really just become our template. This is what we learned from this. We've been distilling it down into a faster and faster process cuz 8 weeks was quite a long time not going to lie. So this is the timeline of our results over the past 8 months uh of moving into this AI transformation partner model. We had that negative30K with that first 8week free audit. Rolled that into a getting back in the green or getting back break even with our first paid 6 week AI audit. And right now we're currently in the middle of a $60,000 4-week audit which I'm going to be breaking down a little bit later in this video. And we currently have proposals out to other clients for $80,000 for just 4 weeks as well. So, we're continuing to shoot more of these shots out and I'll be keeping you guys in the loop on how much we're able to sell these things for. You can be sure of that. My point here is that the demand is there if you know how to service it. offer some kind of AI audits like this, how to do education workshops for them and that can lead into your development pipeline as well. And so, before you pivot your whole business and create it

on something that a dude waving his hands around on the internet is saying, you probably want to know what's backing this up. And so, we are very data driven at Morningside as well. And we weren't just going to dive in on this for no reason. And the data is 100% backing us up here as to what we already kind of had discovered through the many many calls we've taken with uh even just discovery calls for businesses that we want to work with. But 80% of AI projects are failing. So basically there's this trough of disillusionment that these companies all around the world are are falling into right now with AI. They heard the hype. They tried it out. It didn't work. And not only did it not work, but it failed at twice the rate of normal software projects. So say an internal initiative to build some kind of software for the company, they on average fail around 40%. like they don't actually reach the kind of completion or value creation that was intended for that project. AI projects on the other hand being so sort of random and nondeterministic due to LLMs and being hard to a lot more difficult to engineer as well. You need a lot more expertise. They're failing at 80%. So that is leading to a great increase from 2023 to 2024 in the scrapped AI initiatives and companies. So more and more companies a massive jump up more than double from 2023 into 2024. Companies are scrapping their AI and saying look obviously we can't freaking do this ourselves. It's not working. we've just wasted all this money and time and effort. It's just some golden goose and we're chasing some some high that we're never going to be able to get to, at least not on our own. And the result is that these businesses are now desperate for expert guidance. They realize they can't do it themselves. And so they're looking for people like Morningside, people like your agencies as well to come in and say, "This is like I understand your business. I fully mapped everything out. We know that this based off all of our previous work and our experience, we know that these are the areas that you should be investing. " So they are scared of the financial investment but also the time and waste of energy that goes into projects that are not applying AI in the right ways or they're ways that are realistic or cannot give some kind of near-term ROI. But that doesn't mean they don't want AI. the benefits of it. They see it, they understand it, but they just don't think they can do it themselves. So that's why the demand for experts and people who can do this is going through the roof. So touching on this again, you guys will have seen this a million times on my channel if you're a regular viewer, but like here's me a year ago talking about it and you guys really like that video. So, if you haven't already watched that, I'll put it in the description below. Really, highly recommend you check that out. Um, it's it really in informs your acquisition strategy as well as an AI agency, knowing like who you're actually trying to reach out to and who you're going to be speaking to. Um, but we are uh past the early adopters phase now and we're really trying to crack into the early majority and ultimately you can try to tap into some late majority guys as well, but the needs of the early majority here are very different to the early adopters. So, you might have had some success with your AI agency up until now, but just people who didn't really need a whole they might have just been really interested in this stuff that they're kind of early adopters. They say, "I see I don't even need to see a super clear ROI on this stuff, but I like it. I like technology. I'm into it. Hell yeah. I'll just put a little bit of budget aside and I'll just make a couple bets here. " And sometimes it would have blown up and not even worked. Like those many projects that 80% of projects that failed. That's early adopters trying it out and probably not getting what they wanted out of it. and we're basically running out of these early adopters to try to sell to. You can still try to find a couple of them, but they probably would be a little bit more skeptical about things now. And so what you really want for your agency is to have a strategy that allows you to tap into the early majority here. And that means like the Asthma Steel example I gave before, they need to be eased into it. educated on what this tech is even in the first place. Have someone to hold their hand and say, "Look, we're not going to judge you for not being off the first the front the first step right now. We understand this stuff is kind of scary and a bit hard to wrap your head around. You're a steel company. You're not a technology company. We totally get that. " And by having an offer or a package that allows you to sell to these companies and say, "Look, we will ease you into this. We will do everything. We'll sort of take you from end to end. " Um, that includes the education, the discovery, they want to see proven methodologies. hard data of other people, other clients you've worked with or previous examples in other industries and sort of bringing those in. They want to see data. And essentially, you can kind of skirt around that if you don't have that necessarily by walking them through that discovery process and really being clear like, "Okay, we understand your whole business. While we don't have a we don't have another steel company that we've worked with, but we've mapped out your whole business and based on all of our expertise from all of our previous clients, we know that these are the areas that you need to be looking at. " And they say, "Okay, well, this is our best shot at having an expert tell us where to go with this. " So, so yeah, it's very important that you understand all of this and that you won't be able to go and sell 50k or 100k development package to these guys here. they're just not having it like they need to trust you a whole lot more. You need to basically have that extended sales cycle of a four-week consulting or audit that you go through for them to really build up a bit of relationship with you and them to trust the recommendations that you give them. And so on top of this, the market gap here is enormous, right? There's only really these big consultancy firms like Deote who are offering going all in on this AI consultancy stuff, but they go for big companies, right? like mid-market companies that have 500, 1,000, 2,000 or thousands of employees and they have these are much bigger projects, right? They're going to be worth like a few hundred grand or more. And your average small business does not have that kind of cash on hand. They are looking for something in sort of like 5 to 25k range. And I mean, for if you're starting agency, that's good money if you're doing a twoe audit. Um, but you're looking at this gap of sort of 20 to 100. We're still kind of pinning down exactly what the parameters are here, but as I've covered in another video, which I'll link at the end, um there's kind of the small smalls, which are small businesses that are that sounds a bit stupid, I know, but it's easy way to remember it. The small smalls are the smaller small businesses that are between maybe 10 to 50 or 10 to 100 maybe depending on the industry. And then there's a very different set of needs for anything sort of 100 to 300 or 400 that we're finding as well. So, but this gap in the market is because these big consultancy firms aren't interested in these small businesses who don't have the budgets. when they are but they just can't feasibly service them or it's not really their niche and traditional AI agencies like many of you uh you only focus on technical implementation you're development only you don't really do the uh strategic guidance longterm and you're just doing sort of project based work right it might be oh well yeah we did this one but okay we might do another one after that another one but it's all very project based you're not getting a holistic uh view of their business in order to be able to prescribe solutions to help them towards their goals so this is the gap small businesses to at least offer some kind of AI discovery package so that you can start tap into that early majority and even late majority of people who are just not ready for development yet. And like I said, if you can get into this, there's basically no competition. And as for Morningside AI, where this AI development and strategy and consulting sort of hybrid that is just is so refreshing for businesses because the big guys are just all theory. They're all talk. And we have a development basis and grounding in our technical skills. And that allows us to have a lot more authority when we're giving recommendations. And that's really why I see this as such a big opportunity for many of you to start going into these more like consulting based services and offers. So how to

become an AI transformation partner or AITP? So as I said AI automation agency is the best starting point if you're a newbie and you're just getting into the AI business world. It allows you to ease in with these low code and no code uh deliverables. If you're more of a developer and you've got a technical background, you can jump straight in at the AI agency level and offer more full stack AI uh development services. But this is basically just to cut your teeth, get a bit of experience, understand the difficulties and also opportunities of implementing AI within businesses when you get hands- on with it. And the final form is the AI transformation partner or AITP which is adding consulting and education services. When we're aiming to do partnerships with businesses that can be worth anywhere from 100, 200 to 300, $400,000 or more depending on how long you keep that relationship alive. Basically, you become the one-stop shop for your clients and you just build a really great relationship with them and help to guide them through this really quite scary period for all sorts of businesses. So stage one, as I said, is the AI automation agency. And to get started on that, I have a free course on my school. Um, it's just school be first link in the description. Um, and you can jump on there. I've got a whole bunch of videos in here. Um, you just work your way through them and get familiar with that. I don't really need to say anything else apart from that. Then you move on to an AI agency. And that's once you've got a sort of 10 or more, I'd say successful AAA projects under your belt, those sort of low code, no code builds, and you've got consistent lead flow, whether that's through content or ads or, I don't know, you've built some other mystery machine of getting leads. Uh but those are the main ways you're going to be able to do it or maybe doing cold email or cold outreach and stuff like that. Um the what is moving into more uh sort of full stack AI development services and going beyond just delivering on make or NAN or Zapier or whatever you're using. Um and the method of doing that is hiring your first full stack developer. Ideally, it's full stack dev who's also got AI experience expanding to do custom development and basically any form that your customers want and targeting much larger clients. You're doing sort of 30k to 100k builds. And there is still a lot of demand for capable agencies who can do this. Don't get me wrong. It's not like this whole thing just overnight. But the key thing is that you need to be capable, right? There is always going to be a shortage of capable service providers. And there always be demand for people who can do the development very well. So if you just focus on that, you'll be fine. And that's really to build your technical credibility and experience in that AI agency layer. And of course, stage three is the AI transformation partner where you're an established AI agency like Morningside AI was uh with consistent revenue and lead flow. and we were able to move into adding a consulting and education offer as a discovery as part of the discovery phase. Uh offering our first AI audits and in your case if you're just starting out I'd recommend a 10 to 20k two week engagement which I've done a whole video on which I'll mention in a second. uh hire your first AR consultant which I'd recommend is you get someone from the X big four kind of deote that those big companies because they come with all of this consulting knowhow that you likely won't have if you're just kind of an online business owner and you need to develop your own transformation methodology which is what we've been working on at Morningside for a long time and I'll be talking about that um in videos coming up and the key high here is going to be your head of consulting who's the person who's going to be able to lead this and do a lot of the interviewing of stakeholders and going through the process of process mapping uh your clients figuring out what opportunities are and you can come And even if they're not super good on the AI side, they can still do with the interviews and map out the business. Then you can come in as the agency owner add your AI uh knowhow and say, "Okay, well, these are the opportunities that I would be looking to uh work with first to remove these bottlenecks or to implement AI in the best way possible. " So, basically, they're handling all of the routine stuff of the actual consulting deliverable. And so, this just quick outline uh I've got a whole video on this, but basically week one is discovery, doing the interviews, as I said, and week two is going to be the strategy and recommending solutions for those parts. and you can get some big deals in the development pipeline as well off the back of these. So, next

steps for you is if you're a business owner and you want to work with Morningside and my team as an AI transformation partner, we've got a proven uh methodology and we've got it uh established results across multiple different industries now. So, if you want to work with us, you can use one of the links in the description below. If you want to start an AI business and you're watching this as someone who hasn't really got an agency off the ground yet, um you can watch my free course on school. Um again, free course. I'm not trying to sell you anything here. Free course on school. Just watch course. Don't pay me. Don't give me any money. And if you're an established agency, um I have a video which I'll link uh in the description below or on the screen here in a second on how to perform an AI audit where I've got the templates and frameworks and stuff that we use and how I've basically boiled down our four-week audit to a twoe audit that you can do to offer to many of your existing clients or some of the people that were in the pipeline for you but didn't end up closing. I think that's a really good way for you to start to offer these is who have you sort of failed to close because it was a bit of a risky engagement for them. Who can you go back to them now say hey 10k or 15k for one of these twoe audits. So, I'm super excited to see how you guys go with this. Last time I made a video like this, it was kind of kicked off the whole AI business service based business agency boom. And now I we could be on to onto the next leg of it here essentially. And when we look back on this in 10 years, I think this AI transformation partner model where you can do sort of everything is going to have seemed like the most obvious play ever just like back then. Uh now when we look back, it's like oh well obviously making a kind of AI service based an AI agency based around like low code automations makes sense. didn't make sense. It wasn't obvious back then and that was the aha moment that I had and we've just had another one. So, uh time will tell. History will be the uh be the determinant of that. But yeah, that's all for the video, guys. Thanks so much for watching. I'll link up here if you want to watch my how to perform a 60K AI audit where I break down all of this stuff in here but more granularly on how to actually perform one. But yeah, that's all. I'll see you in the next one. Chop.