How to Perform a $60,000 AI Audit (Beginner’s Guide)

Quick Overview

AI agencies can pivot to high-value AI consulting by performing strategic AI audits, leveraging a $50 billion market gap for small to medium-sized businesses (SMBs) who struggle with AI implementation, and building long-term partnerships that lead to significant development deals. Morningside AI successfully transitioned from pure AI development to strategic consulting, demonstrating a model that generates substantial revenue and builds trust with clients.

Key Points: Morningside AI successfully pivoted from pure AI development to high-margin strategic consulting, demonstrating a viable path for AI agencies. A $50 billion market gap exists for AI guidance, particularly for SMBs who are desperate for help but cannot be served by large consultancies. AI project failure rates are alarmingly high (80-85%), leading to a growing disillusionment among companies, with 42% scrapping AI initiatives in 2024. Morningside's consulting model has enabled them to land larger mid-market clients (200+ employees, $100M+ revenue) with virtually no competition. A free 8-week AI audit for a New Zealand steel company, despite costing Morningside $30K, led to the identification of 15 high-impact AI opportunities and a $250K development pipeline. The video provides a detailed 4-week framework for performing $60,000 AI audits for 'big-smalls' (100-500 employees), covering discovery, opportunity identification, solution design, and strategy/roadmap. For beginners, a simplified 2-week 'AI Opportunity Assessment' ($5K-$10K) is offered as an entry point for 'small-smalls' (5-50 employees) to discover quick wins and build trust for larger engagements.

Context: Liam Ottley, a 24-year-old AI entrepreneur from New Zealand and founder of Morningside AI, presents a guide for AI agencies to pivot into high-value AI consulting. This video is a follow-up to his previous discussion on whether AI is replacing AI agencies, where he concluded that while AI development is becoming commoditized, there's a significant opportunity in strategic AI consulting. He shares Morningside AI's journey and proven frameworks for performing AI audits, aiming to help other agencies tap into this underserved market.