Definition
White label AI refers to artificial intelligence products and services that are built by one company but sold or offered by another company under their own brand name. The end customer sees only the reseller's branding and has no visibility into who actually built the underlying technology.
Think of it like store-brand products in a grocery store. A manufacturer makes the product, but it is sold under the store's label. In the AI space, a technology company builds the AI platform, and marketing agencies, consultants, or service providers rebrand it as their own offering.
White label AI is particularly common in the business automation space. An AI platform might offer voice agents, chatbots, workflow automation, and CRM integration. A digital marketing agency can white label this platform, add their own branding, and offer "AI-powered customer communication" as part of their service package to their clients. The agency sets the pricing, manages the client relationship, and handles support, while the underlying AI technology is provided by the white label partner.
The white label model creates opportunities for several types of businesses. Marketing agencies can add AI services to their offerings without building technology from scratch. Business consultants can provide implementation services around a proven platform. Industry specialists can create niche-specific AI solutions by configuring a general platform for their vertical.
For the white label provider, the model accelerates market reach. Instead of selling directly to thousands of small businesses, they empower hundreds of agencies and consultants to do the selling, each bringing their own client relationships and industry expertise.
Why It Matters for Business
White label AI allows businesses to offer cutting-edge AI solutions without the massive investment of building AI technology in-house. For agencies and consultants, it creates a new recurring revenue stream with high margins. For the end customer (the small business), they get AI solutions packaged and supported by someone who understands their industry, with the reliability of enterprise-grade technology underneath.
Real-World Example
A digital marketing agency specializing in dental practices white labels an AI voice and chat platform. They configure the AI for dental-specific workflows (appointment booking, insurance verification, treatment inquiries), brand it as their own "DentalAssist AI" product, and offer it to their existing clients as an add-on service. They charge $499/month per practice while paying $199/month to the white label provider. Within a year, 40 clients have adopted the service, generating an additional $144,000 in annual recurring revenue for the agency.