Bloomberg reported that PwC has been cutting prices for some services after clients pushed back, saying that if the firm is bragging about efficiency gains from AI, they should get a fair share of those savings.
PwC’s Chief AI Officer was quoted saying:
“Clients would hear us talking about using AI and say, we want our fair share of those efficiencies. We certainly, as appropriate, give our clients the pricing benefit of the efficiencies that we are achieving.”
The article also notes that PwC and other Big Four firms are facing challenges retaining partners, with hundreds leaving in recent years.
It’s interesting to see this tension. On one side, firms want to showcase how AI is making them more efficient and innovative. On the other, clients are essentially saying, “If you’re doing the same work faster and cheaper, then we should pay less.”
Do you think this trend of clients demanding “AI discounts” will spread beyond consulting and audit firms? Or will companies try to pocket the margin improvements instead?