Inside Consultants’ Messy Shift From Hourly Billing - WSJ
Wall Street Journal
W
Wall Street Journal
Original Source
As artificial intelligence threatens to render hourly billing obsolete, major consulting firms are grappling with a difficult transition to new client charging models. Deloitte has signaled that traditional labor-based consulting work will significantly shrink as a proportion of the overall market in the coming decade.
Inside Consultants’ Messy Shift From Hourly Billing - WSJ
The Wall Street Journal
* Use Alt + Down Arrow to expand. * Print Edition * Video * Audio * Latest Headlines * Puzzles *
* World * Business * U.S. * Politics * Economy * Tech * Markets & Finance * Opinion * Free Expression * Arts * Lifestyle * Real Estate * Personal Finance * Health * Style * Sports
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.
Inside Consultants’ Messy Shift From Hourly Billing
As AI threatens to make the billable hour obsolete, professional-services firms wrestle with reinventing how they charge clients
By
Mark Maurer
---
!Illustration of a businessman sinking in an hourglass on a computer chip, symbolizing AI overhauling billable hours.
*Thomas R. Lechleiter/WSJ*
Warnings about existential risks that AI poses to consulting firms are forcing a rethink of entrenched billing practices in the profession, but the transition to charging clients a new way is proving slow and difficult.
A Deloitte executive unveiled a chart at a town hall last month showing that traditional labor-based, hourly-rate consulting work is expected to shrink significantly as a proportion of the total market over the next decade.