AI is replacing AI Agencies… Now what?

All AI agencies will be out of business very soon. I just figured out how to use Cloud 3. 7 to generate pretty much any kind of automation. Let me show you how you can have an almost production ready NN workflow. Let's see what we got. And you can click on little drop down here. You'll see we've put together all of these different agents with one single prompt. I've been experimenting a lot with clog and MCPS. And I really believe this fundamentally can change the way we work and do automations. And so a good bet would be to be a plumber. All righty, you read the title. You know what this video is about. Uh we're going to be breaking down how AI agencies can survive as AI is increasingly doing more and more of the tasks that we traditionally thought were ours and were going to be the way we make money forever, right? Um but of course this is part of being in a rapidly changing environment and we kind of all expected this. And so in this video, I'm going to break down one what's happening right now and how AI uh systems are helping sort of not helping, but they're encroaching on the services that us as AI agencies uh typically serve and how you can sort of escape that competition. How myself and my team at Morningside have got away from that and have moved into a very different model and very different area of providing value to businesses that I'm going to walk you through in this video as well. So going to get clear on what the problem is here and then give you a clear solution uh based off my own experience of what I'm actually doing in my agency to survive this. So I hope this is going to be helpful for you all as it's definitely going to be very helpful for you all. So I put together a little slideshow here for you all. Um we can just get through

it. Um so we're going to be covering why most development is dead. That's the first thing. Um why businesses are still doomed to fail even though AI development will likely become commoditized. Then we're going to be getting into the historical patterns to look at. So how can we get a read on this? how can we see like how is this going to play out? Of course, we can look back to history, which is sort of my favorite thing to do with these kind of uh trends and how I spotted the whole AI automation agency thing in the first place. Um fourth, we're going to be looking at the hidden pivot that changes everything. Um a transformation of yourself as an agency and service provider in the AI space to being uh more focused on a different set of deliverables. Um we're going to go into that. Um, we're going to be looking at this $73 billion blind spot that uh, very few people are seeing and even fewer are actually taking advantage of. And that's what myself and the team at Morningside have been doing over the past 6 to 8 months. And we're going to be ending off with a new AI agency value stack that in light of AI starting to do more and more of the development, which we'll go into in a second. Um, how we can provide a much more robust and future proof value stack for you as AI agency owners. So, uh, let's get into it. Really excited for this one. Um, there's a lot to cover, so stick with me. I've tried to make it as visual as

possible. So, if you're new to the channel and you don't know who I am, um if you're watching this video about AI agencies, you probably know who I am. Uh but just a quick recap, uh my name is Liam Mley. I'm founder of Morningside AI. We founded it in uh March of 2023. And since then, we built it into an agency that's uh served some of the world's biggest brands, including NBA team and others. And back in May of 2023, I actually created the AI automation agency model. I came up with the name, my business partner and I, and we started talking about it, and sort of the rest is history. So, at this important sort of inflection point for the space, I feel like it's important for me to chime in and give you guys a bit of direction. I mean, I got a lot of you into the space. Um, I gave you the model and the idea and now I feel like I'm responsible for giving you at least showing you what we're doing at Morningside to survive this shift that's gone away. So, uh, we're on track to do $10 million annually across all of my different AI businesses. I've got over 60 people across uh across the whole world working for me at the moment and we've had a pretty rapid run uh over the past 2 years um, as you can tell. So, that's a bit about me if you are new to the channel. Um, here's our Morningside here. We have done a bit of a rebrand. So, if you haven't already checked out Morningside site, it'll be in the description down below. Um, you can see how we've sort of repositioned the agency in light of everything that I'm about to tell you in here. So, let's get

into it. So, what's actually going wrong here? Uh, how is AI replacing us as AI agencies? And that comes down to things like uh what we have here on screen where we have my man Mark, one of my good friends and original Accelerator members. So, it's awesome to see Mark absolutely crushing it these days. Um, but Mark has been putting out some really fantastic videos. Highly recommend you check his channel out. But as you can see, you guys have probably seen a lot of it as well or even tinkered around with it yourself. But you can now get clawed um to generate the JSON schemas required for NA10 templates and also make and everything. All of these automation systems are basically based on some kind of uh schema underneath. So you can feasibly if you give enough context to the LLM, it can generate these for you. Um there's also another one that came out recently that I saw that is Microsoft C-Pilot AI recorder where basically you just do something on the screen. I'll try to put some videos up on screen here. Um but you just do a task on screen. It screen records you and logs your keystrokes and clicks and then is able to make and power automate a sequence of steps that automate that task. We're starting to see on one side the use of LLMs to generate uh automation workflows and also these AI agent kind of armies um that are going to be sort of the future of of the workforce. These kind of hybrid AI agent and uh human teams. But on the other side, we have these more like browser based automations that are allowing people to essentially opening the door for much easier creation of virtual machines and virtual computers that are going to be uh running these automations for you within a computer within a virtual environment. So it's going to be taking control of the computer and clicking around and basically being a agent control computer um at the end of the day. So the scary thing about this stuff I guess in the near term is that we've kind of always thought that our edge AI agencies is that we're going to be able to like build the stuff that they can't, right? people don't know how to build the stuff. They don't know enough about it. They're not skilled in using NA10 and things like this. So, we're going to have our edge and that's the value we provide. But, um, if you haven't already tried it, I've been doing quite a lot of this recently, but you can go on to Claude, set up a project, and give it enough context about how to build these automations, and then within, uh, like 3 minutes, uh, you will have it built out at least a draft of an automation for you. I'm going to be honest, I still haven't gotten it to the point where it's just like plugandplay, ready to go. So, there's still some tweaks to be made, but this is how far we are right now, and it's only going to get worse moving forward, right? Or worse or better, whatever you want to say. Depends from whose perspective, I guess. But for us, this is a bit scary, right? Um, if it's like this at the moment, and I know that these platforms, I mean, you already had Zapia quite a long time ago where in Zapia you could I'll put it up on screen, but you could type into Zapia and tell the automation you wanted it to make, and it would at least map out the draft of it. Um, you're going to see this coming to things like Ent, very soon, I'm sure. And so inside each of these builders, there's going to be this kind of self-s serve automation builder that feasibly business owners will be able to go on and do it themselves, right? Why would they come to us if they can just do it themselves on make or NAT, right? How and how advanced is the troubleshooting and sort of the more broader strategy and stuff involved in identifying automations going to come through these platforms as well. So that is the the threat here, the sort of existential crisis we have as AI agency owners. Um, and for the rest of this video, I'm going to tell you how we're dealing with it, how we have dealt moved away from relying solely on development to doing many other things, which over the long run are going to be a much more resilient uh type of service to offer as

an AI agency. But before we get into what we're doing, a little bit more info on this DIY revolution and really digging into the data as to how this is going to play out. So, um, AI is eating our lunch if you hadn't picked that up already. You've got Claude making these N10 and make workflows in seconds. You've got things like Lovable and Bolt, which is sort of replacing the more AI agency and sort of full stack development aspect of it. Uh, cursor of course running away with it. We could see that becoming a much more accessible tool for the average Joe within a company. Um, where the development aspect becomes a lot more accessible. Developers of course are using tons and tons of AI throughout everything that they do. But overall, we are seeing a massive trend towards accessibility of development for individuals, but also for businesses as well. Uh so the tools businesses need to build their own AI solutions are becoming more powerful, accessible, and affordable every day, which sounds like very bad news for us, right? Um so if you're not aware, there's kind of a spectrum of services that you can offer um in kind of any industry. You have the uh done for you. Uh we will come into your business and do it for you, and that's where most agencies live. Um then we have do it yourself, DIY. Um and that's kind of self-s served tools like we've been talking about, NA10, Bolt, and Make, etc. Um then we have the done with you which is kind of in the middle and that's something that we're going to touch on a little bit later in this video. Basically we are seeing uh the capability of these DIY tools increase greatly and therefore starting to sort of threaten what we'd considered sort of done with you or done for you uh projects and we only expect this to kind of grow in future right DIY capability is not going to go down. uh it's just going to become more and more uh accessible to people who want to be able to tinker around with AI automation themselves as more awareness comes around how accessible these things are. The usage and at least try and testing out rates of these businesses is just going to keep going up. So by 2026 it's clear that they're going to have unprecedented access to DIY tools that can do a lot of the grunt work of building uh the AI automations for them.

Uh which gives us a bit of a tricky problem, right? But the plot twist here that you probably haven't seen and why I really wanted to make this video is that this doesn't actually solve their problem at the end of the day. It actually leads to more demand for expertise like AI agencies. Now this might sound like some massive cope like oh they oh no they still need me right like I'm still valuable but give me a second and I'll I'll lay out the data and it's going to be pretty clear why we why we're still needed if not more needed than before. So the hidden reality um that's kind of been the undercurrent of this the AI development implementation space for the last year or two is that being despite the hype businesses are actually discovering the reality that AI implementation is much harder than it appears. Like many of you as AI agency owners I'm sure have encountered in your first few projects like oh this is like this is a bit harder than I thought. Um and that's okay. That's part of the learning process. I definitely had that when I first started and that's why I try not to sell you guys the dream too much. like that first few five 10 projects is going to be hard. You're going to feel very out of depth particularly if you're new to development. But this data is really important for you guys to understand because it will affect how you position yourself and the strategy moving forward for your agency. So the interesting thing here 80% of AI projects fail to deliver on their promises. Now, for you guys, this may be may not be as much of a surprise because you know how difficult it can be to really like truly deliver value. You might have delivered some things for your clients where they're like, "Oh, hey, that was cool, but it's not like they're absolutely losing their freaking mind about this thing changing the business overnight. " It's very rare to have like a 100% batting average where every single project that you do is going to absolutely like hit and exceed the expectations of just absolutely transforming this business in a certain department. Sometimes the limitation of the tech just doesn't really allow for that. And the next interesting stat is that 42% of businesses scrapped AI initiatives in 2024 and that's up from 17% in 2023. So basically businesses are trying this out. They are testing it. They're like, "Oh yeah, I mean we're supposed to do AI, right? That's what we're supposed to do. " So they're either trying it internally or maybe they're working with an agency like you. Um but ultimately because of the difficulty and the failure rate on these things, they're increasingly scrapping the projects and going it's not worth it. We don't know what we're doing. No more wasting time on that stuff. it's not ready that basically they're becoming a lot more skeptical and sort of falling into that trough of disillusionment. I'll put up a graphic on screen for uh for that. But there's a typical craft of adoption for a technology and there's a trough of disillusionment where the reality of the technology becomes obvious and okay well maybe yeah maybe it's not all it cracked up to be and all this AI hype in this case AI um isn't really there's not much substance behind it yet. And so that's basically what a lot of businesses are feeling, right? And only 1% according to McKenzie are mature in the AI development. So the market is still absolutely wide open. Um but a lot of people are trying it and failing and therefore they're scrapping their projects. So AI of course has tremendous potential. Uh we wouldn't be here starting these businesses if we didn't think so. But without expert guidance, it becomes a costly experiment rather than a business transformation. So I'm sure based on the amount of money you guys send out in your invoices, you know how expensive this stuff can be. And when the risk, say they've had one bad experience or two bad experiences, they are very riskaverse after they've had two of those duds or even just one of them. Um, so they are taking a step back and saying, "Look, we obviously don't know what we're doing. We're not ready to invest in a certain area unless we've had experts come in and tell us where to do it, which is really the opportunity for us. So what is holding these businesses back? " So just a few more stats to really drive this point home. AI projects have a 2x failure rate compared to traditional IT projects. So like we said, it's 80. If you start I say you're building out a new a custom CRM or something in your business, a traditional software project has about a 40% value rate and AI projects have an 80% value rate. So twice over that. So it's already a gamble to do some new tech stuff. This is twice as risky as their previous technology uh projects. Right? We have 50% of businesses citing the lack of skills, lack of AI knowhow in the organization as the number one barrier for uh adopting AI and getting these successful projects. and 34% of them are significantly underresourced in AI talent. And like I said, we have this disillusionment phase where we're seeing an increase in scrapped AI initiatives uh year on year, which is uh not a good sign in some ways, but a good sign if you know how to uh manipulate it and know how to position your business to make the most of that. And so the result of all of this is that we are seeing a rapid rise in demand for real expertise uh to help businesses to make this transition to apply this technology without getting these sort of failed projects over and over again or shooting in the wrong direction

completely. So just look at history now. history doesn't repeat but it does rhyme. Um and so we can look back to the professional services booms and other tech revolutions and realize that what looks like disruption often becomes market expansion. So uh obviously the most recent example would be the web revolution and all the companies getting websites and getting having a web presence and then I suppose it's digital marketing after that. Um but example here is that uh these self-s served platforms this is sort of shifting gear a little bit to talk about why these self-s served platforms like okay if a business can go on to NAT and just type away and say I need this and it'll build it and then we'll plug it in uh using all of their existing oorth connections etc. if that does become widespread and I'm sure it will, uh, will won't that kill the agency model? opportunity for all of us and just soak up all the market share? And if you look at the web revolution, that wasn't necessarily the case. Um, in fact, these self-s served tools helped to actually grow the market. So, Wix and Squarespace when those came out, everyone was like, "Oh, there goes the web development agency or the web services and professional services industry around web development. " Um, a decade later, uh, the opposite has happened. These DIY tools actually expanded the market for professionals because they introduced people to, oh, like I mean, one, I can't afford a $30,000 website right now. Oh, but I can go on to Wix and I can spend I can get a free trial and then website and oh, I started getting some interest in my I got a few leads through it. calls. Holy moly, this stuff actually works. Okay, well, how I'm going to make mine even better? How can I make my website get me more out of the traffic that I get? Or how can I run more traffic to it and be sort of more proud of what I've got there and better communicate our services? And then they reach the limitations of those platforms and then they start going to agencies, right? This is just how they move up market and particularly as their business starts to make more money. Say you have a small like mom and pop shop and they eventually start making more and more money. Then like this website is a huge part of our client acquisition process. So why would we not invest 5 10 15 $20,000 in a really good one that's going to be able to get as much juice out of that as possible. So the bit of data that I want to point out here that's kind of a proxy for uh web development agency demand is the growth of the web developer role uh in the job marketplace. So despite these new platforms coming and supposedly killing the services industry, they've actually led to a continued steady growth in the demand for web developers and therefore of the whole sort of professional services space of web development as well. So they basically create the awareness and then the demand for professionals explode off the back of that due to the uh introduction of people to the technology and the benefits of it. Another example just to really drive this point home, accounting software. So when QuickBooks and stuff like that Zero came out, you would think that, oh well, I've got a software now. Why don't if I can just go in there and do all the books myself, why would I need an accountant? to have a professional help me do it? Well, actually now all the accountants are the ones using QuickBooks to deliver their services. They can decrease the price of uh their services and be using it to deliver it. Like the business owner at the end of the day doesn't want to have to go and deal with all the books manually. They would still rather get a specialist to do that. And there'll always be a kind of edge that a professional who sees across multiple clients, they've got sort of the experience and the tools of the trade, they can get you better results for your money in this case than a complete rookie. While you could do it, it's a question of will they do it and could a professional actually use this to decrease their prices to give a better service to their clients. And this is what you can see as say if you had an NA10 prompt to automation thing built into their platform. Uh we would be the ones using it. We'd be going on there and rapidly delivering these kind of solutions for them. uh being able to decrease our price there, give a better offering, decrease that financial risk for people. So that might have been burned once or twice before, but now you can say, "No, look, we can get this done in a fraction of the time. We can iterate much more quickly and we don't have to charge you anywhere near as much. " And then you can layer on, as we're going to talk about later, other services on top of that. So the accounting industry still alive and still growing consistently. So the tool basically becomes your superpower. The technology doesn't replace the accountants, it just expanded their capabilities and the potential market for it as well. Because you'll have businesses who try to do their books, small businesses jump on QuickBooks, then it scales up and they've got too many transactions to go through and then before you know it, they're like, "Is your QuickBooks specialist that I can work with in my area? Okay, there you go. Now the professional services are getting their share. " So, I don't want to bang this drum too hard, but basically take away from the section is that DIY tools create market awareness. The complexity hits and reality hits for these businesses as particularly they grow and they need more out of it and they I can't seem to build the website that I want. it's too difficult for me or this doesn't have the features I need or all of my AI projects seem to fail when we do it internally and then these failed attempts create some sort of urgency and like oh we need to move on this now and therefore the market expands for experts because they go hey we know we need this we've tried it we've got the we see the value but now we want particularly for core business functions like a website or your funnel etc these key parts where if you're going to do it you need to do it right the demand for experts is only going to increase uh Home Depot as well 50% of the revenue comes from professional contract contractors. So they sell all the stuff but they get half the revenue from people actually taking that stuff and don't do it. And the legal market despite things like legal zoom is expected to be $1 trillion and it's only going to continue to grow. So uh every DIY tool creates more expert demand is the take away from this

section. All right. So the new model uh that I want to really I guess release for the first time here is uh the AI transformation partner. Uh agencies must evolve from builders to transformation partners guiding strategy, education and execution. This is really what we've done at Morningside over the past 6 to 8 months. It's why I've been kind of quiet on what we've been doing uh at Morningside because I've been really heavily testing uh these new offers around education and consulting and how that connects to our dev team. I have so much more to share on this if I'm honest. Uh I've got a ton of more videos coming as you'll hear about later uh just to really share all the awesome stuff we've been discovering and how you guys can start to get into this market as well. So our model for dealing with the shift as development becomes more commoditized is a essentially a transformation partner model where we offer firstly strategy identifying use cases and crafting AI road maps and providing these executive teams with the strategic clarity that they need and say okay well here's where you are and here's where you need to go over the next 12 months and that is incredibly valuable for businesses at the moment if you can do it right. Secondly education so training teams uh to effectively use and implement AI systems across the organization that is a another massive part. So we see strategy as the top down of getting a clear roadmap for the executive team to execute the direction and the bigger initiatives that need to get done but education can lead to bottom up innovation and uh quick wins for the team as well and oh well now I know how to use chatbt I can actually start to connect it to how to do my jobs or I can use perplexity for this or I can make a basic automation on make when you attack the AI adoption within an organization from two angles bottom up and top down uh you see some really incredible results and then of course finally there's the development arm so we just connect them with the morning side development team. Um, we can build the systems that we've literally prescribed to them and there's all the buying you need. There's alignment. They trust you. They know that you're the team to work with and things just go so much smoother than we've ever really had before in the agency. And the best part about all of this is that it pays bloody well as well. So, we've got a project at the moment going for $60,000 uh for a 4-week AI audit. Um, we started off, our first one was free. Um, and I'm going to touch on this more in a later video, the path for us to get here. Our first project we did for free, 8week AI audit for free for a $200 million a year steel company in New Zealand. And that was really for us to just cut our teeth. Uh we lost $30,000 on that where we intentionally spent on that because it was free. But we learned so much and rolled that immediately into a $30,000 US project for a 6 week audit which we've completed. Uh we're now in the middle of this uh $60,000 4-we AI audit uh for a company in the healthcare industry. And essentially we've realized that these companies are willing to uh they're buying clarity. and not just buying the dev work, right? There's a whole bigger discussion to be had around this as to why this model works. But basically, as you guys know, if you've watched my channel for a while, there's the technology adoption life cycle, right? The sort of bell curve looking thing. You have your innovators, your early adopters, your early majority, late majority, and then lagards, right? We've done the innovators, the early adopters that they've all had their time. We had that over the past 2 years. Now, we're cracking into that early majority, and they are cautious. and they've maybe tried some of the stuff internally as we've said, but they are very cautious and they are not necessarily ready to start coughing up 30, 40, $50, $100,000 for dev projects. They want to get first a lay of the land. They are not early adopters. They're not just going to throw money at things without the clear ROI and clear investigation into the use case. Um, particularly after hearing horror stories of the industry or having their own bad ones themselves. So, the clarity and the strategy up front is so important to these companies and that's really the market that we're playing into and it's really underserved at the moment. there is almost nowhere they can go for the consulting services that we're offering at the moment particularly because we have a development background as well. So our clients love that we are AI development first and then consulting on top rather than a lot of these big companies that are just a bunch of fluff basically.

basically. So getting into the massive opportunity here, the 73 billion gold rush around AI consulting. Um, and that the majority of businesses right now need guidance and not code, right? You might be able to get just like 5% of the market with just development, but you can tap into the rest of the market if you can offer like let's help start your AI transformation process. So why not deote? Why not the big consultancy companies? Why do these mid-market companies want to come to Morningside AI and not to guys like Deote? No, no shade on deote but uh it's for these reasons right here right they these big consultancies they are all talk firstly and their minimal implementation like I said the development base that we offer uh the companies love that because they're like these guys are actually practitioners they've done this they have evidence of seeing this in in practice rather than just like it's easy to make a plan if you're not the one who's going to execute the plan so with us they feel like we are much more uh on the hook for the uh ROI and the returns on these kind of projects. So these big consultancies, they focus on these big expensive reports with a lot of jargon. They're limited hands-on technical experience. I mean, the consultants doing it have zero. Uh they have high overhead and high prices. So they're going to be really charging out the wazoo for this stuff. They have a one-sizefits-all framework in most cases. And SMBs, small to mediumsiz businesses are not priority clients. Well, definitely not small businesses, medium businesses, mid-market. Yes, we've even been competing with for some of the bigger clients that we're putting proposals out for at the moment at Morningside. uh we're competing with these big companies and we and they're letting us know like oh yeah hey we've also had a proposal from these big guys. So it's interesting that us this sort of boutique AR consulting and development company is for some of the proposals we're sending out in the same sort of territory as these bigger companies that's definitely on the higher end of sort of 500 plus employees. Um but yeah and then on the other side we have us the nimble agencies who are a blend of strategic vision with implementation. Um we offer kind of a full service of end to end. We will do everything. You don't need to be shopping around to all these different agencies. We will be your partner. Um we have built hundreds of real systems for us internally and our businesses and also for our clients as well. So we have a very wide uh range of expertise. Uh we have the technical credibility from the actual builds we do. We have SMB friendly pricing and approach. We understand them. We run small businesses ourselves. We speak their language and we can approach them in ways that they understand and relate to them a lot more. And we have some incredible relationships with our clients. And of course we offer custom solutions, not just some generic templates as well. So as Sam Alman says here, managing AI is like managing junior employees. You need someone who understands the technology deeply but can also guide its adoption strategically. So companies want partners who can strategize and execute is the sort of take away from here. And you'll see uh no more deote and more morning side for a lot of the companies who are trying to make this transition. So that's the whole market. We can look now at the particularly the SMB, the small to mediumsiz business opportunity, which is a a significant portion of this and something that these big companies are not really paying much attention to because it's not big enough for them to worry about, which is where you guys come in and also us. Um, the AI consulting market is expected to grow from 8. 8 billion as of last year to 73 billion in 2033. So, that's nearly a 30% year-on-year increase. Uh, which is one of the fastest growing markets in the world right now. And I mean, if you're just going to start a business, it literally if you can just get in a fast growing industry and even if you absolutely suck, you will still make a decent amount of money. So just bet on the horse or bet on get in the right boat. I always talk about like uh it's not about how hard you row, it's about what boat you're in. And that's why we are in AI right now because we believe this is the best boat. And when you look at the numbers, it's absolutely true. So within the S& B market, you've got 78% of small businesses actively seeking AI adoption. um these represent 44% of the US GDP and 50% of employment and at the moment only 5% are receiving some kind of AI consulting. So uh and again reminder 85% of these projects fail 42% are scrapped and so part of the reason why only 5% receive this consulting is because there's just no supply for it. Like there is like probably a handful of other companies offering what we do at Morningside right now which is the sort of full transformation partner where we can go education, strategy and development. This is obviously a bit more difficult to pull off than the initial AI automation agency which I've always said is more like the on-ramp into the space because you can use low code no code tools if you're nontechnical get into it start learning about how to apply uh AI and businesses and that's your on-ramp. Then you can get into sort of an AI agency model that does more custom code and full stack development and then you get into this transformation partner which is the sort of final evolution of the model. I'm going to make a whole video on this so you guys can stay tuned for that. But the pricing gap here you can see that the reason these SMBs aren't getting any action is because the enterprise guys the deoites etc are looking for these big four to six month engagements 100k to 500k or a million or more. Uh but the small businesses they only really got 5 to 10 to 20 $30,000 to spend on this stuff and they need results much faster. So that is the perfect storm for us. This $50 billion market that's not being addressed and AI agents can occupy this perfect position which is expertise SMBs need at prices that they can afford. Right. So getting on to the new value stack for you as an AI agency owner. So again AI automation agency is what I term as sort of the lower code no code stuff that is a great on-ramp. AI agency is where I see sort of where Morningside was until maybe the end of or October last year when we started building our consultancy division. Um that is AI agency where you have sort of full stack development capabilities. You can build full AI SAS etc. More of a traditional AI development company and then you can take that momentum into what we're doing now which is this AI transformation partner. And this is the value stack that we offer. And as you can see, it's kind of inverted to what you've probably running in your agency right now. Uh so firstly, use case identification and AI road mapping, which is uh doing AI audit, strategic planning in order to identify the highest impact AI opportunities and be like, hey, look, we we've looked at we work with a lot of other companies, we've analyzed your processes, and this is where the most value can be made for you. And businesses just love to have that confidence of an expert telling them this is what you need to do. Uh so that's the most valuable right now. these are kind of going to shift around over time um as more people get sort of this initial layer of AI consulting done and then I think it's going to shift down. Uh but secondly, you have training culture and change management which is a sort of big area that people don't even really have on their radar right now which is helping teams to adapt to new AI tools and workflows through education support. So training them on how to use AI. Uh that's a massive need for companies. If you aren't already thinking about addressing that I would seriously consider it. how to set up a correct AI culture and sort of manage the change within an organization around AI like AI innovation um committees etc. How people can bring ideas up from the bottom and sort of discuss them and decide which is going to be put in place. This is a whole sort of cultural aspect that businesses really need right now. Uh thirdly is placements and team building. As we've seen before, there's a massive drought in AI talent and these companies are really desperate for it. So being able to build a internal AI team is really the long-term thing that we are trying to get to for our clients. We don't want them to be dependent on us forever. Maybe they are getting checking in. They have an annual consulting plan with us where we check in quarterly and we say, "Hey, look, this is what we're seeing with our other clients. Here's some things that you could basically update to their AI team internally. " But we want to help them build their internal AI engine. And that's really the the key thing for an AI first organization that they need to have moving forward to survive this is not just be dependent on an agency, but have their own uh internal AI talent, have like an automation expert, have a chief AI officer, etc. these kind of key roles that can help to make a self- sustaining AI innovation engine within a company and that's something that is growing in value and I see as a really massive opportunity long term then of course we have development at the bottom of it so just building the systems and I think with a lot of the AI tools we're seeing right now it's going to become a lot more commoditized easier for us to deliver this stuff well cursor getting even better for the customcoded stuff uh we have like these AI prompted workflow kind of uh systems on NA10 and make etc the development stuff is going to become a walk in the park for us and the value is going to go to these other things that you can offer more of that full service AI partner. So with shifting from building to transforming essentially and the great thing about this model is that the development happens very naturally when road mapping and audit work are done right the strategy is becoming priceless and these development projects just kind of roll off the back of it as I'm going to touch on in another video how we at the end of one audit made uh like $250,000 worth of recommendations and now we just sweet we're ready to go right so not only did we make money in the sort of exploration and just discovery section then we get these huge deals that they're fully bought in on and fully see the vision and understand why they need to have those and you've educated the staff so they actually get the technology. It's just it's been a complete game changer for us at Morningside. So, just a quick preview of the kind of stuff that we are doing for our clients at Morningside on the consultancy. It's not easy. There's a lot to it, but I have a video coming up that I'm going to break this down into what like how could you get started in offering these kind of AI audits. Here's just two of the like 100 slides or whatever we gave to one of our initial consultancy clients. Um, we were doing this use case identification and AI roadmapping. So these are the use cases. Uh nine workflow based cases, four bot based, bot- based you have to kind of dumb the language down a bit so that they uh can grasp what it is. Uh and then even six machine learning use cases that we would connect to partner agencies that we have that are more specialized in machine learning than us. And then we can kind of map out on a department by department basis the road map or sequence of events to sort of knock out the quick wins that we've identified for them and how they play into the bigger swings for them that are going to provide a much more longerlasting uh benefit for them. So what am I saying here? I'm saying

that this is your moment given all of the stuff that we're seeing right now, right? The development stuff going to zero. The commoditization of the stuff that we sort of have built the background of our companies around. You have a chance to evolve and win with this stuff. Uh but you need to stop thinking like a builder. That's not all the value you can offer. And if you have been building, you've got the perfect base for this. And like you seriously have done all the hard work. And the thing is, people are going to try after I talk about this enough and show what we're all the success we're having at morning. So, people are going to try to come in at that consultant level and they're just going to have none of the base. You guys have been building the base. You've done the hard work. I've always said it like you need to be willing to do the hard the ugly work of getting in there and just like 6 to 12 months of trying to deliver stuff and like being burnt and like not being able to deliver on stuff or feeling like you could have done better or like regretting the tool choice you had. All of these things that you've been doing. It's the hands-on experience that very few people in this world have right now. This is your chance to be able to step that knowledge up to a much more profitable and scalable form of the model. Um, and we have the benefit that the trend is towards development becoming so easy that we can put a bloody intern on it and they can just go there and whip it up. You get a senior engineer in there to make sure it's all set up correctly. And then the value for us on the development side more comes to the monitoring and tracking and optimization of the systems that are currently there. So the development stuff it will shift to more of that and management and operations and optimization but the bigger opportunity in the near term is going to be this kind of stuff here. Um easy way to do this is to start adding assessments or leading with some kind of education product for your businesses. Um target the learning curve of these mass the early and late majority of businesses who are not yet taking action but they are curious. They just need to have the right offer the right partner to come and say hey look we can we've got you sorted. So my message for you all is that stop just being an AI agency. you need to become an AI transformation partner or seriously consider what your route is from here to there. It's not going to happen overnight. It took us only eight months to build our consulty division to get our first few projects under our belt. It it's a slow process, but right now we are basically in a category of one. There is no one else offering the kind of services we do and our clients love us for it. So yesterday you're a builder. Today you're going to be a guide and tomorrow partner. Right? So if you like that one, I've got a shitload more in the chamber to tell you about all the stuff I've been doing in Morningside. So, I'm going to be doing a full how to perform an AI audit, a $60,000 AI audit, uh a beginner's guide on that, that video is going to be coming out in a few days, probably after you see this. So, if you want to see that and stay in the loop on how you can start shifting yourself more towards a uh a consultancy and education and AI transformation partner model, then make sure you subscribe to the channel if you haven't already. Uh leave me a like and also just let me know down below. I I'm sure many of you are also seeing this in your own agencies. So, let's start a discussion under this video. Um get to the bottom of this, right? I want to hear from all of your perspectives. Have you guys tried doing it on low ticket? Because my experiences because of my brand might be kind of unique to me and the things that we have at Morningside. So, love to hear from you guys about how you've gone with something like this or what your main concerns are. Uh and I can address them in the comment section and I'll probably just make more videos on it to answer those questions. So, stick with it guys. We are in the right place. Um and I'm so looking forward to seeing how all of you can take this and run with it as we have. So, that is all for this video guys. Thank you so much for watching and I'll see you in the next one.