The "Boring" AI Business Model Making Millionaires in 2025

Summary

In this video, Ben discusses how AI tools and automation are revolutionizing the service industry, particularly for agencies. He highlights the growing potential of AI-first service models that combine domain expertise with automation, providing better margins and outcomes. Ben shares his experience with successful AI-driven agencies and offers practical advice on monetizing services through productization and automation. He encourages entrepreneurs to leverage AI for scalable growth and reveals resources for those interested in building or expanding their AI-driven businesses.

Takeaways

• 😀 AI is transforming the service industry by making agencies more scalable, efficient, and cost-effective.
• 😀 AI-first service agencies focus on providing outcomes (e.g., new leads, increased revenue) rather than just selling AI tools.
• 😀 These agencies combine domain expertise with AI-driven automation to deliver better results at a lower cost.
• 😀 Cold IQ and Supersight are examples of AI-first agencies automating processes to increase profitability and scalability.
• 😀 By using automation, AI-first agencies can offer high-quality services to more clients at a fraction of the cost of traditional agencies.
• 😀 AI-first agencies can adopt either a Red Ocean Strategy (competing with big agencies for high-budget clients) or a Blue Ocean Strategy (targeting underserved markets).
• 😀 Automation can be introduced into the service offering step by step, from basic processes to full-scale AI system implementation.
• 😀 Productizing services over time, instead of from day one, allows businesses to scale and refine their offerings efficiently.
• 😀 AI-driven service businesses often focus on providing a specific outcome to clients, such as better talent acquisition or marketing performance, rather than just delivering AI technology.
• 😀 The value proposition for AI-first service agencies lies in delivering measurable results (e.g., new leads, higher ROI) rather than just technology or tools.
• 😀 AI-first agencies are positioning themselves as a major disruptor in traditional service industries like digital marketing, branding, and talent services.

Q & A

What is an AI First Service Agency?

An AI First Service Agency integrates artificial intelligence and automation into traditional service models like digital marketing or recruitment, allowing for more scalable, profitable, and efficient service delivery. These agencies use AI to automate repetitive tasks and enhance client outcomes, such as lead generation and creative work, making them more competitive compared to traditional service agencies.

How does AI benefit service agencies?

AI benefits service agencies by automating repetitive tasks, streamlining processes, and enabling scale. This leads to improved efficiency, lower costs, and better client outcomes. For example, AI can automate email campaigns, creative processes, or lead generation, significantly improving the speed and accuracy of service delivery.

What are the three key service categories for AI First Agencies?

The three key service categories for AI First Agencies are: Growth Services (e.g., digital marketing and lead generation), Talent Services (e.g., recruitment agencies providing new talent), and Operational Services (e.g., outsourcing legal, accounting, and customer support services). These categories benefit from AI by automating and optimizing processes.

What does it mean to 'productize' a service?

'Productizing' a service refers to turning a custom, high-touch service into a self-serve product that can be easily used by clients without much involvement from the service provider. This allows businesses to scale and serve a larger client base by reducing costs and improving accessibility.

How do AI First Agencies use outcome-based pricing?

AI First Agencies often use outcome-based pricing where clients pay based on results rather than just paying for services or time. For example, in a lead generation business, clients may only pay for the leads generated, making it a performance-driven model that aligns agency success with client success.

What is the significance of AI in digital marketing agencies like Cold IQ?

In digital marketing agencies like Cold IQ, AI is used to automate and optimize processes like email campaigns, lead generation, and customer segmentation. By automating these tasks, the agency can deliver higher value to clients, reduce costs, and scale services more effectively while focusing on outcomes such as new leads and revenue.

Why is AI advantageous for small businesses in traditionally expensive service sectors?

AI is advantageous for small businesses because it reduces the costs of traditionally expensive services by automating tasks and processes. This allows smaller companies to access high-quality services, such as marketing or lead generation, that would otherwise be out of their budget, democratizing access to advanced business solutions.

What are some examples of AI First Agencies transforming traditional industries?

Examples include Cold IQ, a lead generation agency using AI for email campaigns and Superside, which automates creative tasks like graphic design. These agencies use AI to reduce costs, increase efficiency, and scale services, transforming industries that were previously reliant on manual, labor-intensive processes.

What role does domain expertise play in building an AI First Service Agency?

Domain expertise is crucial in building an AI First Service Agency because it provides the foundational knowledge of the service being offered. This expertise, combined with AI tools, helps create solutions tailored to specific industries or client needs. For example, a marketing expert using AI can design systems that automate and optimize ad campaigns based on their understanding of marketing strategies.

What are the primary strategies for monetizing an AI First Agency?

The primary strategies for monetizing an AI First Agency include: 1) Delivering services, like marketing or lead generation, using AI tools, often with flexible pricing models such as low retainers or outcome-based fees; 2) Productizing services into self-serve solutions that can be sold to a larger audience; 3) Offering training and coaching for other agencies or businesses to integrate AI tools into their operations.