{"id":20450,"date":"2026-09-28T01:27:00","date_gmt":"2026-09-28T05:27:00","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/?p=20450"},"modified":"2026-09-25T20:32:40","modified_gmt":"2026-09-26T00:32:40","slug":"services-firms-need-a-new-value-strategy-for-the-ai-era","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/services-firms-need-a-new-value-strategy-for-the-ai-era\/20450\/","title":{"rendered":"Services Firms Need a New Value Strategy for the AI Era"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>By Dave Valliere, Founder &amp; CEO of<\/em> <a href=\"https:\/\/www.form-function.co\/\"><em>Form &amp; Function Consulting<\/em><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">AI isn&#8217;t simply changing how professional services firms deliver work. It&#8217;s changing what clients are willing to pay for. Billable hours used to be a workable proxy for the scarce expertise clients were buying from services firms. Now, as AI reduces the time and effort needed to complete many tasks, the relationship between time and value is breaking. As AI makes many of the capabilities clients once relied on services firms to provide more accessible, and creates an expectation that execution should happen faster, the value of execution alone is increasingly under pressure. 32% of <a href=\"https:\/\/www.prnewswire.com\/news-releases\/ai-is-ready-but-firms-are-not-how-falling-behind-on-ai-implementation-is-costing-clients-and-talent-302806199.html\">legal and accounting firm clients<\/a> will reevaluate their needs over the next 12 months, with $143 billion in revenue up for reconsideration, according to a new Thomson Reuters report.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The shift is exposing which firms have built operating models capable of creating value beyond execution. Firms that can move toward higher-value problems where expertise, judgment, proprietary knowledge, and outcomes matter more than the labor required to execute are in the best position now to retain clients. Some firms are already dealing with AI-related repricing challenges. Visibility into your own firm can also make it easier to reprice AI-enabled delivery. Rather than guessing or matching competitors (who might be guessing, too), you can make pricing decisions based on actual cost savings, capacity impact, and margin. And you&#8217;ll be able to make data-driven decisions about pricing for your strategic services portfolio as it grows. The same discipline should extend to how your services evolve. Use what you learn from client engagements to continually refine your offerings, delivery model, and project economics, creating a feedback loop between the problems you solve for your clients and how your own business creates value.<\/p>\n\n\n\n<h2 id=\"h-how-leading-services-firms-are-creating-strategic-value-now\" class=\"wp-block-heading\"><strong>How Leading Services Firms Are Creating Strategic Value Now<\/strong><strong><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Start by benchmarking your value-creation posture with a few questions for the leadership team.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Do you know which of your firm&#8217;s existing capabilities deliver the most impact for your clients?\u00a0<\/li>\n\n\n\n<li>If so, do you also know which activities generate the least impactful outcomes for your clients?<\/li>\n\n\n\n<li>Does your firm already have language to describe how you create and measure value for clients?<\/li>\n\n\n\n<li>Do you have client outcome data to support that value-creation description?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">With that information, services firms can take steps to improve metrics and develop strategic offerings:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Measure client value alongside delivery effectiveness.<\/strong> Utilization, resource allocation, margin, and billable hours are still important metrics of how effectively a services firm operates, but they tell you little about the value the work actually creates for clients. What&#8217;s needed now is an additional set of KPIs that focus on the impact of the firm&#8217;s work on clients&#8217; businesses, such as revenue growth, cost reduction, speed, risk reduction, or other measurable business impact. Understanding both sides of the equation allows firms to see not only what work they can deliver efficiently, but also which work creates the greatest value. Over time, that insight can inform where the firm invests, which capabilities and offerings it prioritizes, and where it has an opportunity to move beyond effort-based pricing.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Create advisory engagements that combine a base fee with bonuses tied to the achievement of client KPIs.<\/strong> This changes the focus from project scope (hours and deliverables) to demonstrable value creation. This model exists across multiple industries, including finance, digital transformation, recruiting, and advertising.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Shift from a focus on one-off deliverables to building reusable delivery models and intellectual property.<\/strong> A framework developed for one client can serve as a template for future engagements. For example, a Maryland CPA firm that specializes in succession planning for family businesses has packaged its experience in that area as a <a href=\"https:\/\/www.journalofaccountancy.com\/issues\/2025\/jun\/real-life-ways-accountants-are-using-ai\/\">custom ChatGPT tool<\/a> for clients and prospects. The chatbot serves as a lead-generation tool because users must sign up for the firm&#8217;s email list to access it. Then, the bot nurtures those leads and establishes trust by answering their questions based on real expertise in the field.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Use capacity freed by AI and automation for senior strategic development instead of more billable hours.<\/strong> The time saved by AI can free up teams&#8217; capacity. But if that capacity is simply reallocated to the same kind of execution teams have been delivering all along, new AI pricing constraints still apply. Long-range planning can deliver more value over time than simply racking up more hours, especially if those hours have been repriced down because of AI. Cultivating expertise also allows firms to &#8220;command premium fees that are based on expertise rather than volume,&#8221; according to the recent <a href=\"https:\/\/www.thomsonreuters.com\/en-us\/posts\/tax-and-accounting\/future-of-professionals-tax-audit-firms-paper-2026\/\">Future of Professionals<\/a> report.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Establish a channel for proposing and evaluating value-creation ideas.<\/strong> New strategic offerings don&#8217;t usually emerge from one planning session, and the most innovative ideas will be inspired by real client needs, which change over time. When the people closest to the clients&#8217; challenges and needs have a defined process for sharing their ideas, collaborating, and getting feedback, firms can translate more of their insights into valuable offers. This aligns with the need for internal visibility.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These steps support creating value through solutions, judgment, IP, and data, not just expertise and capabilities that AI is commoditizing. When you stop treating all of your firm&#8217;s work hours as products and invest some of those hours in strategy, your firm builds longer-term value.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">AI&#8217;s pressure on pricing isn&#8217;t going away. Clients know it saves them time in-house, and they know it makes execution faster and cheaper for the firms they partner with. That means treating this as a temporary issue is a strategic error. We already see leading firms repricing and finding new ways to create value. This requires a mindset shift from hours to value, but the most important change is improving your firm&#8217;s internal visibility. Having that data will allow you to identify areas where you can optimize your own operations, understand clients&#8217; challenges, and deliver the kind of value that positions your firm as an advisory partner.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Author Bio:<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Dave Valliere currently serves as Founder &amp; CEO of<\/em> <a href=\"https:\/\/www.form-function.co\/\"><em>Form &amp; Function Consulting<\/em><\/a> <em>and is a seasoned executive with a proven track record of scaling high-performance organizations. During his decade-long tenure as CEO of Velir Studios, Dave transformed the 250-person consultancy into a digital powerhouse, navigating its successful sale to Stella Point Capital and the strategic acquisition of Brooklyn Data Company. Having guided digital transformation and AI-enabled experiences for over 150 global brands and Fortune 500s, Dave now leverages his deep expertise in strategy and operational rigor to help organizations navigate complexity and drive sustainable, high-impact growth. Dave also serves on the Board of Directors for CAMP Digital and the Board of Trustees for the MelroseWakefield Hospital in Melrose, MA.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you stop treating all of your firm&#8217;s work hours as products and invest some of those hours in strategy, your firm builds longer-term value.<\/p>\n","protected":false},"author":26,"featured_media":20451,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","editor_notices":[],"footnotes":""},"categories":[1],"tags":[5],"topics":[2],"class_list":["post-20450","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-data","topics-editorial"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.5 (Yoast SEO v28.5) - 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