FIR #422: Will AI Kill the Consulting Billable Hours Model?

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Neville and Shel both spent time at a global Human Resources consulting firm in addition to their long tenures as independent consultants. At the core of all consulting is the labor-intensive work that takes time, and time is money. Every consultant has an hourly billable rate, and even when quoting project fees, those fees are based on the hours required to complete the project. This model has been under strain for decades, leading to concepts like "value-add," in which hourly fees are supplemented by the additional value the consultant supposedly brings to the project (which is, after all, supposed to be reflected in their hourly rate). Now, AI may be the nail in the coffin for the billable hour model, in addition to fundamental consultant structures and offerings. In this short midweek episode, Neville and Shel examine the state of consulting in the AI age.
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