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By Gary Anders
For decades, accounting and other financial services firms have priced work around billable hours on the assumption that the human time spent on work for clients should be the core pricing input.
But that pricing model is now under serious threat, with the growing use of artificial intelligence (AI) technologies enabling firms to complete complex tasks that once took hours or days — in minutes.
So, should clients expect to pay lower professional services fees where the use of AI and automation has resulted in a reduction in billable human time?
The impact of AI on professional services fees
Tim Williams, founder of the US-based Ignition Consulting Group, who works with firms on creating and capturing value, says “the final nail in the coffin of the hourly rate is artificial intelligence”.
“Are we going to bill by the nanosecond? How do we monetise and capture the significance of what AI can do in an hourly-based business model? It simply does not work.”
Williams says firms need to “stop being slaves to the billable hour” and find ways to productise their business in a way that allows them “to capture the value of AI by baking it into their solution sets, irrespective of how much time is spent”.
"I do think, as we evolve our use of AI, that this discussion about transparency, productivity, the labour, the technology and how it is adding efficiency to the audit, means clients may start to look more closely at their fee and potentially demand some savings if they can see less labour is used and there is more technology."
Dr Angela Hecimovic, a senior lecturer at The University of Sydney Business School, is undertaking extensive research into the impacts of technology adoption, particularly AI, on the auditing and assurance profession.
Hecimovic and her colleague Dr Ravi Seethamraju published a research paper in 2023 titled Adoption of artificial intelligence in auditing: An exploratory study and are currently conducting fresh research into the use of AI by audit firms. They have noted, from their interviews with auditors, that there is a degree of “tension” regarding fees.
“We are almost seeing two camps of people,” says Hecimovic, a former auditor herself. “There are the ones who are saying, ‘We might be able to charge more because we are providing more insights into parts of their audit that we were not able to before, such as fraud detection.’ But then there are others who are a little hesitant.”
The need for transparency in AI accounting services
Hecimovic notes that the Big Four accounting firms — KPMG, PwC, Deloitte and EY — have spent billions of dollars over recent years integrating AI technologies into their operations. For example, KPMG Clara and ChatPwC.
“They are all saying that AI is transforming audit, and it is allowing them to value add to their clients. So, in a way, they are selling this idea they will be able to do more for their clients — not just in audit, but in consultancy as well,” Hecimovic says.
KPMG’s Transparency Report 2025 states that KPMG Clara now includes AI and generative AI capabilities, but it is also made clear that “people make the difference and remain at the heart of every audit”.
"AI is a tool, and I am seeing that it will actually amplify expertise and help practitioners to increase their margins and fees, but only for high value advisory. You do not charge less for it, because your customers will want more outcomes and more problems solved."
Likewise, in its Audit Transparency Report 2024–25, PwC Australia notes that its network of AI-based audit platforms have a “human‑in‑the‑loop auditor interface [that] enables strong quality review and approval at appropriate testing points by our auditors”.
“As AI tools and intelligent agents increasingly take on routine tasks in our audits, human skills like communication, critical thinking and decision making are even more valuable,” says Sue Horlin, PwC Australia’s assurance leader.
Deloitte and EY US have similar transparency reports.
Hecimovic says she is not sure that audit clients have enough understanding of where AI is being used by their auditors.
“I do think, as we evolve our use of AI, that this discussion about transparency, productivity, the labour, the technology and how it is adding efficiency to the audit, means clients may start to look more closely at their fee and potentially demand some savings if they can see less labour is used and there is more technology,” she says.
When and where pricing models need to be reviewed
Joanna Wells, founder and managing director of global pricing consultancy Taylor Wells, says the use of AI will ultimately reduce some professional fees.
“AI is really good at accelerating repeatable tasks and processes, and anything that has a workflow becomes commoditised. I think for commoditised work, firms will really have to think about their pricing model and strategy because the market will basically force that to happen.
“But for advisory work, things that require judgement, decision-making or problem-solving, I think clients will realise the benefit of human expertise and AI combined once they see the outcomes. Because when you see the impact coming through to your profit and loss based on consistent margin improvements, clients see those results as tangible and want more of them.”
Wells says firms will need to leverage their expertise using AI.
“AI is a tool, and I am seeing that it will actually amplify expertise and help practitioners to increase their margins and fees, but only for high-value advisory. You do not charge less for it, because your customers will want more outcomes and more problems solved.
“Why should firms charge less for high-value work just because it is done more quickly? They should be charging less for low value work when it is done faster, but not for the higher value work,” she says.
“AI is rapidly dividing the consultancy market, and some consultants will have the ability to charge higher prices while others will be stuck in a commoditisation trap.”
