Hatz AI to Help MSPs Build AI-as-a-Service Businesses

A new company, Hatz AI, aims to help MSPs build an artificial intelligence (AI)-as-a-service business with AI applications and agents, vector storage and custom large language models (LLMs).

Hatz AI was founded by Jimmy Hatzell, previously with CyberQP, Barracuda MSP and Skout Cybersecurity, and entrepreneur Aidan Kehoe. Hatzell is also Hatz AI’s CEO.

Furthermore, the company also received $2.5 million in seed funding led by Vestigo Ventures.

Hatz AI is set to make its products generally available to MSPs globally in March. The first release will include both an AI application builder and organizationally managed AI assistants.

Later this year, Hatz AI will make its AI phone customer service agents generally available, as well as the ability to train and manage vector databases and custom LLMs inside its multitenant platform.

Hatz AI to Help MSPs Address Small Business' AI Needs

"A global transition to AI started happening, and small businesses didn't really know how to use these new AI products,” Hatzell said. “Maybe some of them have experimented with ChatGPT, and there are some people who are very good with prompts and things, but that's about as far as it went. When I talk to the average small business in America, they weren't yet integrating it into their business. I realized that they wouldn't be able to do it on their own and that they would need help. And in the past, when there have been huge technological shifts, MSPs have been the people providing help. You look at the movement to cloud for small businesses and many of them turn to MSPs to do it. You look at cybersecurity and many of them turn to their MSP. And I thought that the same thing would happen for AI. Then I looked at the market and I didn't yet see a platform where an MSP could set up their own business practice and serve their end users.”

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Hatz AI's Jimmy Hatzell

There’s a lot of pressure on MSPs in general with technology because there’s a lot of new technology that small businesses need support with, “and MSPs are the only ones they can turn around to,” he said.

“They're the only human beings that will answer the phone and answer the questions about technology,” Hatzell said. “So as this transition to AI has fully kicked off already and continues to accelerate, they're going to be getting those phone calls and they're going to be the ones providing services. So I think that there is a lot of pressure to begin doing it. And it would be extremely difficult for an MSP to offer extremely specialized services in all of the technologies they support, which is why they turn to great vendors. And I think a similar thing is going to happen with AI, not only from a tools and product standpoint, but also from an education standpoint. You need a good partner who really understands this stuff, and who can help the MSP stay on the forefront of what's happening and what's next.”

Big Opportunity for MSPs

Launching an AI-as-a-service business presents a big opportunity for MSPs, Hatzell said.

“I think there is going to be a huge amount of spend on AI in general over the next five to 20 years,” he said. “MSPs naturally will catch a lot of that spend on any type of services just because it's in tech. An MSP that specializes in AI or offers an AI-as-a-service business practice will be able to pick up more spend or recurring revenue from their own customers by supporting these new technologies and then also give themselves a competitive advantage to other service providers.”

Every organization is trying to do more with less now, and generative AI offers a unique opportunity for businesses to do this, Hatzell said.

“As people try to save on budgets, I think people will look to how we can get more out of our own employees and augment their capabilities, and make their lives easier using AI instead of … spending X amount of money doing this job in other ways,” he said. “There's a lot of fear around AI taking people's jobs, and what I think is more realistic, at least now, is AI gives businesses that are small the ability to compete by multiplying the productivity and output of an average worker, and making their jobs easier.”

Hatz AI Launch Partners

Among Hatz AI’s launch partners are PCH Technologies, Avtek Solutions and LAN Infotech. Since launching, MSPs have been “nonstop” signing up for its waitlist, Hatzell said.

“There's certainly a lot of demand for a platform like this and our sole focus on working with MSP partners helps us because we're not trying to be everything to everyone,” he said. “We're just trying to help MSPs build an AI practice for themselves. If we can successfully support them, they will all grow their business tremendously, which is what I wake up to try to do every day. The initial output and reaction from the MSP community has been extremely high.”