PE investor refuses hourly-billed AI consultancies: 'This job costs $5,000 — whether it takes 5 hours or 2, we don't care'

alex_verem · x · 2026-11-10

An investor who just raised a fund to buy services businesses says he won't touch anything where AI 'reduces the hours but the pricing goes down with it.' He wants fixed-price work: 'This job costs $5,000. If it takes five hours, great. Two hours, great.'

Most consultancies bill by time, but boards want work faster and margins better — and nobody at the firm gets promoted for finishing in two months instead of twelve. The author's takeaway: you end up funding the slow version of your own AI plan; his team sells outcomes per month instead of hours.

Original post →

More from AGI Musings

AGI Musings channel →