"McKinsey is under pressure from clients to tie its fees to outcomes achieved — such as lower costs, higher profits or increased market share — rather than to t
McKinsey is facing client pressure to shift its consulting fees from an hourly basis to performance-based outcomes. This change is partly driven by the increasing use of AI by consulting firms, which reduces the value of traditional billable hours. Other professional services like law and accounting are experiencing similar pressures to demonstrate value and pass on cost savings. AI
IMPACT Consulting firms are adapting to AI's efficiency gains by exploring outcome-based pricing models.