Procurement, retainers, deliverables — all of it built for a 2010 economy. AI is the loud part of the change. The rest is structural.
What's actually breaking
The billable hour is breaking because production speed has decoupled from production cost. The retainer model is breaking because clients don't want guaranteed monthly output — they want guaranteed monthly outcomes. The pitch process is breaking because it rewards rendering decks, not solving problems.
What replaces it
Flexible squads, outcome pricing, and shorter contracts. Less revenue per logo, more logos per quarter. Agencies that learn to scope and price against outcomes will be fine. The rest will be acquired or absorbed.
Written by Vincent Maher ·