The best reinvention consultants can make in the AI era is to their pricing model
Consulting firms are struggling to adapt their business models to the AI era, moving away from traditional billable hours toward outcome-based pricing. The shift is driven by the need to prove the value of AI integration to clients who are skeptical of 'AI-native' branding.
Why it matters
This reflects a broader shift in the professional services industry as AI automation forces a re-evaluation of how value and labor are monetized.
Oscar Wong/Getty Images This post originally appeared in the Business Insider Today newsletter. You can sign up for Business Insider's daily newsletter here . Consultants are having an identity crisis. AI's arrival has raised questions about the value consultants provide. And while people have always questioned what consultants actually do, the AI era has magnified the issue. Consultants are rebranding themselves and overhauling how they pitch their services to clients. It's led to the rise of the "AI-native" consultant , where the tech sits at the center of everything they do, writes BI's Polly Thompson. From cutting major partnership deals with AI companies to leaning into tech-driven projects and away from generalist work, it's a big shift for a trillion-dollar industry. But just saying you're AI native doesn't make it so. Polly spoke to insiders about whether the AI capabilities and experience consultants tout are more bark than bite.
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