Steve Phillips, CEO of Zappi, breaks down the evolution from a traditional services business to a scalable product company - and what AI means for the future of agencies, consultancies, and insights firms.

He explains why services businesses are “fun to work in but awful to run,” how valuation multiples differ between people-based and product-based models, and why agentic AI systems could reshape the entire industry by making teams exponentially more productive.

👉 Watch the full conversation for why the next generation of agencies will look more like SaaS companies than service providers.

📌 Chapters

00:00 – Building a services vs product business

00:57 – Why services businesses are hard to scale

01:38 – The valuation gap between services and SaaS

02:51 – Why tech companies are valued higher

03:59 – How AI agents will transform service models

04:39 – The future of hybrid teams: humans + AI

05:20 – Why “bread and butter” agency work will disappear

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