McKinsey & Co is overhauling its compensation structure as clients demand outcome-based fees rather than traditional billable hours. The firm plans to shift more partner pay into equity while building cash reserves, reflecting revenue uncertainty from results-driven billing models.

This transformation stems from AI's impact on professional services. Consultants now use AI for data analysis and diagnosis, making hourly rates less relevant. Lawyers and auditors face similar pressure to pass on AI-driven cost savings to clients. The shift represents a fundamental challenge to century-old billing practices.

Companies like Fin charge 99 cents per customer case resolved, while iDenfy bills £1 per identity verification. Salesforce offers task-based pricing for activities like updating customer records. These models provide budgeting predictability for both providers and clients through upfront credit purchases.

However, outcome-based pricing carries risks when external factors affect results. Wars, tariffs, and client management decisions can derail even the best consulting plans. Despite these challenges, the trend toward results-based billing will accelerate as AI continues reshaping professional services economics.