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HomeNews & Current EventsPax8 CEO Urges MSPs to Embrace Agentic AI Transformation,...

Pax8 CEO Urges MSPs to Embrace Agentic AI Transformation, Become Managed Intelligence Providers

TLDR: Pax8 CEO Scott Chasin emphasizes that the era of agentic AI is already here, urging Managed Service Providers (MSPs) to evolve into “managed intelligence providers” or risk obsolescence. He highlights the shift from traditional service models to an ecosystem where AI agents act as a new labor force, driving automation and demanding new pricing structures. Pax8 is supporting this transition with a managed intelligence toolkit and an MCP-enabled marketplace to make vendors accessible to AI agents.

Pax8 CEO Scott Chasin is sounding the alarm for Managed Service Providers (MSPs), asserting that the “age of agentic AI isn’t on the horizon, it’s already reshaping the managed services landscape.” In an exclusive interview with CRN, Chasin urged MSPs to transform into “managed intelligence providers” (MIPs) to avoid falling behind in this rapidly evolving technological era.

Chasin frames this shift through the “lens of managed intelligence,” which he describes as the foundation for an “ecosystem shift” rather than mere tech upgrades. He states, “MSPs are becoming gateways to automation and AI-driven transformation.” This transformation is not just technological but also philosophical, requiring a “mindset change” where AI agents are recognized as “the new labor force.” Businesses, he contends, must “build capabilities now to meet a demand that will pull, not be pushed.”

The evolution of AI agents is accelerating, with Chasin predicting a rapid adoption of “level-two agents,” such as task-completing assistants, by early 2026. Currently, most businesses, including SMBs, are at “level one” with chatbots. However, level-two agents are capable of executing complex workflows with minimal human input. Chasin points to software engineering as an area already seeing significant impact from level-two agents, handling coding and DevOps tasks. He foresees this spreading to sectors like healthcare and service operations, with real-world applications such as voice agents managing post-operative scheduling, leading to improved quality, scale, and cost savings.

This agentic AI era necessitates new pricing models, moving away from traditional “price per seat” to “price per agent, per action, per workflow or even per outcome.” Additionally, two new revenue streams will emerge: management fees for governance, security, and alignment of digital labor, and increased cloud consumption driven by every deployed AI agent. Chasin stresses that this is a “fundamental shift in the business model.”

Pax8, a Denver-based company, is actively preparing its partner ecosystem for this transition by launching a “managed intelligence toolkit.” Chasin emphasizes that “enablement is our superpower,” and their “MCP [Model Context Protocol]-enabled marketplace” is crucial for making vendors accessible to AI agents. The MCP allows Large Language Models (LLMs) to utilize tools, empowering agents to act. Vendors are encouraged to implement MCP servers in front of their APIs to make their software “agent-ready.”

Chasin’s message to MSPs is clear: “Get moving. Build your strategy. Don’t wait.” He believes that “discovery is the first step in identifying what can be agentically automated within your customer base,” a process that will soon be powered by automated assessments and marketplace tools. He warns that this is “not a five-year horizon” and that “rinse-and-repeat digital labor deployments will be a reality” by the fall of next year, requiring urgent action from MSPs.

Looking ahead five years, Pax8 envisions itself as both a marketplace and a platform, positioning itself as the “fourth marketplace” alongside AWS, Azure, and Google Cloud, but with a specific focus on MSPs and SMBs. The company aims to be an “engine of commerce for digital labor,” helping vendors and partners monetize the agentic opportunity and drive the next generation of business automation globally.

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Regarding the company’s financial performance, Chasin confirmed that Pax8 achieved its profitability goal in 2024, a “major milestone” demonstrating disciplined growth. While a potential IPO is “not top of mind” due to market uncertainty, Pax8 remains focused on helping its partners navigate and succeed in the rapidly approaching era of agentic intelligence.

Nikhil Patel
Nikhil Patelhttps://blogs.edgentiq.com
Nikhil Patel is a tech analyst and AI news reporter who brings a practitioner's perspective to every article. With prior experience working at an AI startup, he decodes the business mechanics behind product innovations, funding trends, and partnerships in the GenAI space. Nikhil's insights are sharp, forward-looking, and trusted by insiders and newcomers alike. You can reach him out at: [email protected]

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