Monday, October 6, 2025

How AI Agents Will Render the ‘Billable Hour’ Obsolete

Raju Malhotra, Chief Product & Technology Officer at Certinia, discusses the evolution from billable hours to value-based billing in professional services. The traditional billable hour model, once viewed as a reliable gauge of value, is being replaced as clients demand measurable business outcomes rather than mere time spent. Recent advancements in Agentic AI enable firms to transition smoothly to value-driven pricing by leveraging real-time data and integrated systems. This allows for more dynamic project management, improved resource allocation, and enhanced financial clarity.

Agentic AI represents a transformative leap, enabling organizations to align service delivery with specific client objectives and optimize workflows across disparate systems. By integrating AI into their business architecture, firms can improve decision-making, automate processes, and ultimately deliver higher-value outcomes for clients. This shift not only strengthens client trust but also fosters sustainable growth and innovation, paving the way for a future where service effectiveness is the primary measure of success.

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