AI pushes McKinsey and other consultancies toward outcome-based fees

In short: AI is making some consulting work faster, and clients are pushing firms like McKinsey to charge more based on results instead of hours.

What's going on

Big consulting firms have long charged by the hour, similar to how some lawyers bill for time spent. That model is being challenged as consultants use AI tools to do tasks like data analysis and problem diagnosis more quickly.

According to the Financial Times, McKinsey is under pressure from clients to link fees to outcomes, like lowering costs, raising profits, or gaining market share. This is a shift from paying mainly for time and slide decks to paying for what actually happens in the business.

This kind of pricing is becoming more common in other AI-related services too. For example, some AI customer support tools charge per issue solved (like paying per completed help desk ticket), and identity check services may charge per verification. Software companies such as Salesforce also offer pay-per-task options, and some customers buy credits upfront to make spending easier to predict.

What to watch

Outcome-based fees can be tricky because results are not fully under a consultant’s control. Wars, new tariffs, or internal company decisions can derail even a solid plan. A likely next step is more mixed pricing, with some work still billed by the hour, and more projects priced around clear targets that both the client and the consultancy agree on.

Source: Financial Times