In a recent LinkedIn post, Lee McCabe critically examines the evolving billing strategies of major consulting firms in the age of artificial intelligence. McCabe highlights a trend where traditional advisory services are being repackaged and billed under the umbrella of AI transformation, leading to concerns about duplicated billing and inflated costs for clients.
McCabe points out the significant financial ambitions of top consulting firms related to AI. He notes:
“Bain wants 50% of revenue from AI-driven work by 2026. BCG is aiming for 40%. McKinsey is already calling 40% of projects AI-related. Accenture is doing what Accenture does best, turning it into an industrial process with a very large invoice attached.”
The “Discovery” of AI by Consulting Giants
The author suggests a dual narrative: consulting firms have “discovered” AI, but perhaps more accurately, AI has “discovered” consulting. McCabe argues that much of what was previously billed as premium advisory work involved tasks that are now ripe for automation.
He elaborates on this point:
“Because a lot of what used to be sold as premium advisory was actually structured synthesis, benchmarking, workflow mapping, reporting, project management, and the sacred art of putting the client’s own data back into a slide with a triangle on it.”
According to Lee McCabe, these foundational tasks, which formed a significant portion of consulting revenue, are now being challenged not by advanced AI directly, but by broader automation, improved tooling, and more cost-effective delivery models. Clients, he implies, are becoming more discerning about the value received for substantial fees.
Rethinking the Consulting Economic Model
McCabe contends that the future success of consulting firms will hinge less on their AI-related press releases and more on fundamental shifts in their economic models. He advocates for a move away from traditional hierarchical structures and performative client engagements.
As Lee McCabe puts it:
“The firms that win will not be the ones with the most AI press releases. They will be the ones that change the economic model.”
He outlines a vision for a more effective consulting approach, emphasizing:
- Proprietary data utilization
- Repeatable workflows
- Embedded execution
- Measurable EBITDA impact
McCabe contrasts this with what he describes as less productive client interactions, such as excessive alignment meetings that yield little tangible outcome.
The Evolving Role of the Billable Hour
While acknowledging that the billable hour is not obsolete, Lee McCabe suggests its current form is unsustainable. He uses a vivid analogy to describe its precarious position:
“The billable hour is not dead. It is just looking a little overweight, underperforming, and nervous in a quarterly review.”
In essence, McCabe’s analysis on LinkedIn serves as a call for greater transparency, efficiency, and genuine value delivery within the consulting industry as it navigates the AI revolution, urging firms to adapt their business models rather than simply adopting new terminology.
📝 About This Content
This article is based on insights shared by Lee McCabe on LinkedIn.
📅 Originally posted on July 16, 2026 | View original post on LinkedIn →