AI & Enterprise
AI upends consulting revenue model as outcome-based fees gain ground
Generative AI is changing how consultants work and putting long-standing billing systems under pressure, with clients increasingly demanding lower costs as working hours fall. As a result, outcome-based pricing is drawing attention as an alternative to hourly billing and fixed fees. Under this model, clients pay a base fee and tie the remaining compensation to agreed targets such as cost savings and profit improvements, though the approach carries risks.
