PE partner: outsourced dev shops refuse AI yet try to bill clients for it

alex_verem · x · 2026-10-30

A UK PE partner says he cares only about cost-cutting and EBITDA: his portfolio's outsourced dev shop refuses to use AI despite being 2-3x productivity potential, yet tried to pass AI tool costs to the client. A healthcare software CFO told the same story. The author's take: hourly billing makes AI an existential threat to vendors — 3x faster means invoices shrink by two-thirds — so they resist adoption or shift costs to buyers.

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