Startup Stories – Mixergy

Episode #2279: "How are there so many AI agencies?"
Host: Andrew Warner
Guest: Rob Howard (Howard Development & Consulting / Innovating With AI)
Date: September 10, 2025

Episode Overview

This episode explores the proliferation of "AI agencies"—firms that deliver a wide range of AI-driven consulting and automation services to businesses. Host Andrew Warner seeks to understand how these agencies thrive, what kinds of clients they serve, the nature of the work they do, and how newcomers can break into the space. Rob Howard, an experienced developer, agency founder, and educator at Innovating With AI, offers inside perspectives on client acquisition, service design, tech stacks, and the business dynamics that make AI consulting so lucrative right now.

Key Discussion Points & Insights

The Surprising Demand for AI Consulting

• Doctors and Medical Professionals as Early Adopters
  • Rob describes how private practice doctors, psychologists, and similar professionals were eager to pay over $10,000 for document automation solutions—without lengthy sales calls or deep technical vetting ([03:00]).
  • These clients knew AI could solve substantial pain points (e.g., reducing hours spent on tedious documentation) and valued their own time highly.
• Quote:
  • “They were saying, ‘I'm spending 12 hours on this document. And I think AI can make that work for me in two hours.’” – Rob Howard ([03:53])

Why Generalized AI Agencies Succeed

• Clients often don't know what’s possible or what to ask for; they just want “an AI solution.”
• Unlike mature services like SEO or web development, the AI service market is still a “Wild West.”
• Rob’s advice: Niche specialization is valuable for long-term scaling, but broad approaches work when starting out ([06:38]).

The Consulting and Training Roadmap

• Many agencies begin by offering entry-level AI training or assessments before moving into strategy and implementation.
• There’s immense demand for foundational education (“AI 101”), even from experienced professionals ([08:42]).
• Quote:
  • “They don't believe how many people are complete novices and are like, give me the 101 or 102 training.” – Rob Howard ([08:48])

Tech Stack & Tools – No-Code and Low-Code Revolution

• The vast majority of AI automations for clients use tools like:
  • Zapier
  • Make (formerly Integromat)
  • N8N (open-source automation)
  • Airtable, Supabase, Google Sheets for data organization ([13:29], [23:17]).
• These tools enable non-coders to deliver substantial business value.
• Quote:
  • “You can give so much value to clients by building them no code solutions.” – Rob Howard ([13:45])

Real-World Project Examples

• Medical Document Automation: Automating report generation for doctors and psychologists ([03:53]).
• Real Estate & Museums: Automating the creation of listings or daily social media posts using structured content and AI writers ([14:44], [19:24]).
• Content & Proposal Automation: AI systems that take voice notes and turn them into professional documents, particularly for tradespeople ([35:25]).
• AI-Driven Chatbots for Internal Use: “RAG” chatbots (Retrieval Augmented Generation) built from company documents to support customer service ([38:49]).

Why Businesses Pay for “Simple” AI Solutions

• Non-technical business owners don’t want to spend the time learning even low-code tools, preferring to pay for done-for-you solutions.
• Opportunity cost for executives and knowledge workers is high; paying $5k–$10k for automation can yield much higher returns ([22:39], [23:17], [29:21]).
• Quote:
  • “Why would I go do this learning curve to figure this out when I can pay $5,000 and get $25,000 worth of value out of it pretty much instantly?” – Rob Howard ([25:31])

Building the Consulting Business: Acquisition, Niching, & Retainers

• Agencies typically:

  • Start with their warm network, offering discounted training or audits ([27:40]).
  • Broaden to second-degree connections.
  • Eventually niche down for more efficient lead generation in direct outreach ([28:44]).

• Project Progression & Retainers:

  • Begin with training/audit, progress to strategy, then automation/build work, aiming for long-term, recurring relationships ([30:04]).
  • “Think of the fourth sale first.” (Rob Howard, quoting a consulting mentor) ([30:45])

Quote:

• “The ideal is, we work our way up the ladder. We eventually get into retainer or fractional services… so the client is with you for the long term.” – Rob Howard ([30:45])

The Threat of Commoditization & The Value of Bespoke Work

• There is a risk that big vendors (e.g., Google, OpenAI, Zendesk) will commoditize certain AI tools, and it’s easy for others to build similar solutions quickly ([41:48]).
• The real opportunity for agencies is custom work, human connection, and ongoing adaptation—serving clients whose needs don’t fit off-the-shelf SaaS ([44:50]).

Transformational Student Successes

• Many non-techie students have become successful consultants, with example earnings of $3k–$10k per project and 5–10 clients annually.
• Standout: A student with beginner tech skills upskilled, landed consulting engagements (including Fortune 500 trainings), now earning substantial, recurring revenue ([48:23]).
• Quote:
  • “He was one of the first people to score a gig through our directory, which was with a Fortune 500 company who flew him to New York and then is flying him out to the west coast to do paid trainings.” – Rob Howard ([48:44])

Notable Quotes & Memorable Moments

• On the AI Service Market’s Wild West Feeling ([07:12]):

  “It is very much, you know, the wild west in the sense that nobody really has a good handle at like mid size and large companies on exactly how to tackle this.” – Rob Howard

• On Opportunity and Learning Curve ([25:31]):

  “Why would I go do this learning curve to figure this out when I can pay $5,000 and get $25,000 worth of value out of it pretty much instantly?” – Rob Howard

• On Custom Solutions vs. SaaS Threat ([44:50]):

  “We discourage people from trying to compete with the SaaS tools...there's a significant group of clients who want more, and that's where the consultants come in with their more custom work and their strategy.” – Rob Howard

• On the AI Wave vs. Traditional Tech ([16:09]):

  “What you've discovered is the central tension between what I would describe as the old tech economy and the new tech economy...that is rapidly changing.” – Rob Howard

• On Client Education and Building Authority ([33:36]):

  “By providing that training, you're up on a stage or giving a presentation, it is about something that effectively is magic.” – Rob Howard

Timestamps for Important Segments

| Timestamp | Topic/Segment | |-----------|--------------| | 00:00–01:44 | Andrew sets up the core question of the episode: Why are so many AI agencies succeeding, and what do they actually do? | | 02:51–05:20 | Rob describes the explosion of demand from non-technical professionals (doctors, psychologists, etc.) seeking AI document solutions. | | 06:20–08:13 | Advice for agencies: start broad, niche down later; the market is still “the wild west.” | | 08:42–10:34 | Immense demand for beginner AI training and education in the business world. | | 13:29–15:07 | Core tech stack for AI agencies: Zapier, Make, N8N, Airtable, etc.; demo projects for real estate and museums. | | 19:24–21:41 | Step-by-step project design—"easy/medium/hard" versions for clients; value of simple but powerful solutions. | | 23:17–25:31 | How techy do you want to get? The balance between ease-of-use and power in the current automation tools. | | 27:29–29:21 | How agencies acquire their first clients and why human outreach is now more valuable than ever in a spammy world. | | 30:04–31:58 | The importance of thinking beyond the first client engagement; anchoring for long-term relationships and retainers. | | 35:25–40:08 | Additional “magical” project examples (voice notes to docs, AI-powered chatbots for internal use). | | 41:48–45:38 | Addressing commoditization threats from big players and DIYers; why consultants will always have a niche. | | 48:23–51:09 | Success story: Non-techie student upskills, lands Fortune 500 clients, earns $3k–$10k per project. | | 55:42–end | Rob’s parting thoughts: AI consulting is approachable, lucrative, and NOT as scary as it seems. |

Episode Takeaways

• The AI industry is in an early stage; demand far outstrips expertise, and there’s ample room for consultants—especially those comfortable building human connections and offering bespoke solutions.
• Tools like Zapier, Make, and N8N have democratized automation and AI integration; deep coding skills are no longer a prerequisite for building real business value.
• The most successful AI consultants combine moderate tech skills, a teaching/educational approach, and a focus on building trust with clients.
• Even in a world of rapidly advancing SaaS, there will always be clients ready to pay well for customization, handholding, and ongoing guidance.

Relevant Links

• Howard Development & Consulting
• Innovating With AI – Training & Directory – includes a directory to find certified AI consultants

Summary by AI, capturing the conversational depth, tone, and actionable insights from Andrew Warner and Rob Howard’s discussion. Useful for entrepreneurs, agency founders, and professionals considering a jump into the AI consulting wave.