---
id: "action-shift-pricing-model"
type: "action-item"
source_timestamps: ["§ Break the rules to build the future", "¶9"]
tags: ["pricing", "business-model"]
related: ["concept-value-based-pricing", "claim-billable-hour-obsolescence"]
action: "Transition pricing strategies from billable hours to fixed or subscription-based fees based on value delivered."
outcome: "Protection of firm revenues as AI drastically reduces the time required to complete client projects."
speakers: ["Atta Tarki", "Joseph Raczynski"]
sources: ["reskilling"]
sourceVaultSlug: "hbr-seg-reskilling"
originDay: 10
articleStem: "hbr-edu-45-consulting-firms-hire-talent"
sourceUrl: "https://hbr.org/2025/10/how-ai-is-upending-how-consulting-firms-hire-talent"
sourceTitle: "How AI Is Upending How Consulting Firms Hire Talent"
---
# Shift to Fixed-Fee Pricing

**Action:** Transition pricing strategies from billable hours to fixed or subscription-based fees based on value delivered.

**Expected outcome:** Protection of firm revenues as AI drastically reduces the time required to complete client projects.

Because AI will eliminate the bulk of billable hours associated with manual grunt work (see [[claim-billable-hour-obsolescence]]), firms must proactively change how they charge clients. Benchmark fees against the value of the outcome or against what slower, non-tech-proficient competitors would charge, moving toward fixed or subscription models — the operational form of [[concept-value-based-pricing]].