The New AI Agency Model That Will Dominate 2025

hey everyone Liam hotley here and today just wanted to make a quick video Even though this is the holiday season and I hope you're all having a great time with your family and friends that's what you celebrate but I wanted to make a uh sort of looking forward video into 2025 for those of you with an AI automation agency who want to really be on the front foot and I'm going to be sharing what I have seen significant shifts in the market on my end um at Morningside Ai and what I suspect to be one of the driving forces of change and uh really where everything is going with this space um within 2025 and Beyond and so I wanted to make this quick BD just breaking down what we're seeing on our end and how you guys can start to position your agencies to benefit from what I think is going to be the big shift in the market in 2025 so um this goes right back to what I've talked about a lot on this channel um earlier this year um about the technology adoption life cycle and how technology is typically adopted throughout a market all right so you guys have seen it if you haven't already watched that video I highly recommend you check that out it's kind of like mandatory stuff for making money in emerging Tech spaces so I'll put a video link up here or on the description or somewhere um and I recommend you watch that first cuz it's when I break down um the Dynamics of the market and how technology is adopted by businesses or by any anyone really um in different stages you have the innovators you have the early adopters majority the late majority and then the laggards but basically technology adopted in different phases by different groups of people who have different inclinations towards the technology right maybe they're an early adopter and they see they like to take a bit of a gamble or risk on new technology or they're in the early majority which are people that need to see a bit with proof and evidence before they can make a jump and take the investment um but all of this is based around us trying to sell AI systems and services and solutions to businesses and you're going to get a spread of business owners who fall into different categories right and how this relates to the big shift we're going to see next year is that for the most part we have been focused over the past two years and so really talked about this model and it's gained so much traction in the past two years it's been primarily focused on the implementation section and this is because we've been primarily dealing with uh early adopters and by implementation I mean implementing AI into their businesses like actually Building Systems for them and saying this is going to make some kind of meaningful difference in your business so that's implementation and that's what we've really been focused on it's can you get these early adopters or business owners who are interested in Ai and basically profit off of their interest and willingness to spend money on this new technology that excites them that they want to get ahead with and that's what the AI automation agency model up to this point is largely being based around which is there's a bunch of really adopters who want to spend some money we can Market ourselves through personal branding through YouTube through if you're doing like cold outbound as well basically get yourself in front of these people or try to find those who are interested in it and offer your services and say hey look if there's something that you would like to build um we can do it for you or even identify a more specific offer that you sell um that you've really dialed in and you found hey this is a great offer to sell and you're reaching out to businesses and trying to say hey I can do this for you and then providing a bit more proof so that's more so dealing with the early majority and trying to sell to people who aren't necessarily implementation or ready for AI systems or aware enough about the problem and or about the benefits they provide the key is that the implementation layer that we've been so focused on is actually what we have realized at morning side AI uh over the past say 3 to 6 months as we've been working with our Consulting division that we've set up here in New Zealand is that the implementation step is actually kind of way down the pipeline and it's really a late stage way of capturing value in the AI space as an agency and you've got a lot that happens before that and while it has been good to start off initially and just deal with the implementation uh and selling implementation for businesses who are ready for it and eager for it sure that's been a great way for us to get our agency off the ground and as for many of you guys as well um we see that there's a much bigger opportunity going into 2025 and a slightly different model and I mean if you go right back to when I first started talking about the AI automation agency model it was aimed at small to mediumsized businesses and helping them to implement and integrate AI into the business and it was always really leaning towards you are going to be the in the same way that social media marketing agencies were the people who helped businesses to move online and start uh not necessarily Move online not like set up their website but I mean they do that sometimes but move into social media marketing and start being their guide to getting into the digital marketing era and that's what the AI automation agency model is ultimately going to move towards uh in the long run but next year is when I really see that shift taking place and that you're going to see us moving more towards or the agencies who really succeed moving more towards being the AI transformation partner for businesses and whether that's being general which may be quite difficult or niching down to saying hey I I'm the AI transformation partner for and I'll explain exactly what that means on an implementation and on a like operational standpoint in a second I saying we are we help planning businesses transition

into the AI it's basically the offer that you're helping them out with right or that you're presenting to them and so the way this would look as we see that morning side AI we're starting to identify these real key areas uh that your agency can focus on and can provide value to businesses and this really allows you to tap into a much larger chunk of that market of business owners right the technology adoption life cycle we've got these big chunks of the business owner population in your given niche who are not ready for AI implementation yet but this strategy that I'm talking about right now essentially allows you to tap into pretty much the entire spectrum and everyone in the market because you're taking a different approach than going straight from implementation right so this strategy this AI transformation partner kind of offer starts with basic education right so that's taking businesses we've found in our Consulting business that we've started here that you go to some of these companies and they just know absolutely nothing and even at this point they're still at the starting blocks and this is in New Zealand we are not on the most on the front foot necessarily with AI here in the states it might be a little bit more common for businesses to be making moves but I'd say on the most part if you go and start knocking on doors around your city if you're living in the states if you live anywhere and you start knocking on doors of businesses and asking them about what do you know about Ai and uh what benefits does it present what are the risks um have you thought about implementing it you asking all these basic questions and the business owner just like M I have no clue what you're talking about and I'm not really that interested in it sure I'd like to make more money and spend less um but I don't know what this AI stuff is so step one is that there's a huge opportunity for just basic education and there's the whole population and business owners need to be brought up to speed in it just like they did with what is a website and why the hell should I put it in why the would I spend money on getting a website set up right this we have the same opportunity now and yes we've been focused so much on implementation but you go back like two steps I'll explain the in a second and the first thing is just what is the technology what does it actually do uh what are the risks with it and like what are what what's the difficulties of me getting to the point where I actually get some value out of it so we see there as being a big opportunity if you're really looking to scale into 2025 and Beyond so that you can tap into say your entire Niche not just the plumbers who are I'm using Plumbing as an example but not just the plumbing businesses who are watching my video or are kind of really techy and they're ready for implementation and they're aware of what AI is which should be obviously a very small portion of the plumber business own the population but by positioning your business in a way that says look we can actually do the education section so we can start to convert that 97% of people who are not interested and start to move them down the pipeline towards being implementation ready that is step one so step one would be education okay can you go they use Plumbing as an example again but this is for any nich this is when being niched down is probably going to be the significant Advantage because it's going to buy from industry to Industry right we saying we help XYZ types of businesses to transition into the aih there's this different wording for that I mean that's probably not what we would ultimately go for the offer that we working on a morning side AI but that's the main concept of it right so you've got Education First what do a tech and then the next step after that is once they've got that foundational understanding it's like okay now let's go into use case identification and this is what we see as the kind of Consulting portion and where we've learned from our own Consulting team that there's this really key need of use case identification with the businesses and a team that can go through and do a really rapid and efficient AI audit and that we see as the second layer of this new kind of AI transformation offer we've educated them okay now we can actually have a proper productive discussion about what this stuff can do for your business so you've understood the foundations now the next layer on top of that is what can it actually do for your business let's run through some of the systems you have right now let's identify any of the low hanging fruit let's do a breakdown of okay well this is big opportunities the uh the difficulty value Matrix which I've talked about on the channel here before again I'll link a video to it in the description or somewhere here a lot of the stuff I've already talked about before um but I know we often need to be reminded uh more than we need to be How does it go we often the what is that saying we need to be reminded more than we need to be told oh no taught so again I'm just reminding you of the things that I've talked about here before but basically walking through use case identification with them where do these things that we've discovered and identifi within your business and where do they fall on the difficulty value Matrix like how are there some low hanging fruits some quick wins that are not very difficult to implement but are hugely valuable and one of the longer term projects that we can look at that are going to be high value but also High difficulty and take

time and so being able to make a bit of a road map or timeline on how they can start to take those off then you are ready for the implementation section and then we get to what we've all kind of been familiar with this AI automation agency which is actually using our development teams to build the systems for them and then go through the cycles of iteration to get them performing well and then managing that system moving forward so I guess implementation would be one and then you've even got another step after that which is ongoing optimization and maintenance so technically there's four parts of that right the education what is the stuff Consulting and use Cas notification how can this actually help my business how does it apply to my business implementation okay let's actually build this now and then the ongoing maintenance so there's four different ways that you can create value and sell things to them right and that can either be sold as a package where it's like okay this is going to be $155,000 for me to we do we help plumbers to move from here to here we have this complete offer and we're going to walk you through step by step or you can start to like kind of make that more peace meal and you can say hey we have this free education offer and then you can advertise directly to Plumbers you can go to Plumbing conventions again Plumbing as the example um and then you can say okay well I'm going to do the education I'll actually give the education away for free and build some trust with these plumbers and say I am the go-to guy for AI and your plumbing business and then you can sell them on the use case dentification you say oh actually we've got $2,000 package for um use case notification you'll work with our Consultants directly we'll run through a whole process identify the best ways that you can use AI within your business and if you are smart about it you do stay niched down CU you can just keep doing it's basically how different can one Plumbing business be from the other you actually aren't having to reinvent the wheel each time with this user case identification there may be some differences but for the most part it would be like booking systems or you know like optimizing schedules and stuff like that so the use case identification package could become pretty lucrative as well and then you have the team as well to sell it and whether you are this is when becomes actually really good for people who are non-technical because if you get to the point where I'm like you're really good at selling you might be good at getting on camera or writing and you can really Market yourself or you've always been very much on the sales or marketing side of a business or that's just the way you lean kind of naturally you can do your thing you can become hey I'm going to be the educator and I'm going to have this team of consultants and then when it comes to implementation I'm not going to have my own team of devs I'm going to be passing off to Dev Partners say you go to my free community or if you're part of my accelerator you can network with the guys who are doing numbers in there and you find capable development Partners who don't want to do the marketing all the selling crap that they don't there's never really part of their MO and stuff that they want to do as a developer and then you can just pass them off and say hey look we'll take 20% of any deals we send you and these are going to be our implementation partners and that way you get to flex this business model to what you need and if you're a development partner you can find people who are doing the strategy and doing the educating and you get to just get the leads that you want and if you think often if it's custom development your margins may be I know 50 60% and so if you are a markety sales person who's going to be doing that education and priming them for that implementation step the actual real value creation and how you get hundred of thousands of dollars in savings and you're passing it off and getting 15 to 20% you like that's you're almost there if a project runs long and you end up going uh over um the expected timeline you could only end up profiting 20% % and you've had to have the whole div team and do all of the management yourself so it can actually be pretty like if you're just getting 20% pure profit for just passing it off it's not actually that much worse you're making like half the profit that a full Dev agency would be making but with 0% of the headache that comes with running the whole Dev so that's not to say I highly recommend you should just go and sell it and then pass it off that's just a strategy that you can adopt and my point here with this whole video is that I think this is where we see it going are moving our agency and I'm going to upate you more on that next year but we see this as really the uh the opportunity to scale hard into different Industries because once you have that offer you've got I have education for them I have a great team of Consultants that I can or Consulting strategy at least like a system where you can get one of your team on and they go on and they walk through this this this great we've got that that's a you can sell that as a package or you can just have it as part of this whole package as well but then you get you unlock that technology adoption life cycle you unlock a significant chunk of the market when now you can Market to any business owner because you have something for every stage of the Readiness like hey okay let's still a quick question there do you know about Ai and what things yeah got a pretty good idea okay great well do you know where it can best help your business I yeah that's really where we're stuck we're not sure okay great well we've got a Consulting package we can get you straight onto that and then after that we've got some great partners that we can help you uh connect with or we can actually build it for yourself and then there's another opportunity that comes off the back of that we are eyeing up particularly at Morningside Ai and that's if you did have a group of De Partners say you were

doing this make a package that say $5 or $20,000 for this AI transformation that's into end you've taken them from basic education you've even got maybe a layer of Staff education in there as well where it's like upskilling them as well Consulting implementation maintenance teacher and then if you're really smart you can hand off all of the kind of lower ticket smaller stuff to your Dev agencies that you identify with them your partners and then if there's one really interesting thing that you're like wow I think we could build something around that and actually start to sell it to other businesses within that niche then you say we're going to put our Dev team on this one it might be like a really complex sales system but you know it's going to drive a ton of value or we've had things that were popped up recently in the Consulting we do run to like a computer vision Inventory management system and so well if we built that we could actually then start to sell that to other businesses in that Niche and you start to build up a bit of a portfolio of these software Solutions AI software solutions that are massively useful and you've got a great case study to then go and sell it on to other people so that's how you can start to build a bit of a software portfolio as well so I don't want to go much deeper on that cuz I'll take the window out of my sales for next year and what we're doing at Morningside but I thought I'd put you guys onto a bit of game there as to where I see the market moving and I think this is something you should all be considering if you might have a good thing going with the implementation already and you got a good amount of momentum but looking further ahead and if you really want to unlock a bigger chunk of the market now that we are getting a little bit more competition there's more people trying to come after this that's not to say we're late I still think we are so bloody early to this when you again when you do the knock on the door test and there's like no businesses using it um it shows that we are still so early uh but this is something you should look to be doing hey how can I start to unlock and tap into more of this untapped market and it's not just those early adopter who are really ready for this technology already but I want to start accessing that bigger part the early majority and even the late majority by being able to give them a much more beginner for anything and tell you like hey AI is really going to spre shap the industry I know can seem quite scary and daunting but if you give me I've got this free program or this free little course that's going to walk you through we've got a paid course whatever it is that's going to take them through to the stage where they're ready for use case identification and you got to start thinking about it in these different layers of value that you can provide so that's my little message for 2015 um I'm super excited for this and I can't wait to see some of you take this kind of offer and just absolutely crush it and dominate niches U either within your country or internationally as well I'm just so excited because there's so much potential left like we have just got started when you're seeing that we're now developing the model to this point and the all these companies are still starting at the they're still at the starting blocks so um I hope you guys are excited for 2025 there's so much opportunity and so much to be gained um here monetarily but also just in like self-actualization and uh like building something building a business in the space and feeling like you've achieved something feeling like you're proud of yourself and I think that is as much of a part of Entrepreneurship as just the money like once you make the money you need to find some other kind of purpose so yeah I hope you guys have had a excellent 2025 uh 2024 sorry and uh I'm really rooting for all of you to have an even better year in 2025 so should be my last video for the year actually um but yeah more on this to come in 2025 but this is me for the year signing out and I'll will see you next year oh