Free White Paper: "PRICING AI FOR FAILURE"
Paying for hours: the fastest way to lose the partners who get you to 20x
AI is compressing delivery by an order of magnitude, and most
contracts still bill the hours it just erased.
The split. Every AI deployment creates value: what the buyer keeps and what the provider earns
for creating it. Price by the hour or the head and you gradually defund the only part of the deal
that was ever going to keep compounding.
The trap. The usual response is inaction — blaming Procurement for clinging to old methods. That
is the commercial hallucination: treating a broken business model as a sourcing problem. The lever
is the incentive underneath the contract, not the rate on top of it.
The choice. Extraction pays a partner to protect its hours, which sends its next investment
elsewhere. Alignment pays a partner to protect your outcome, because that is now what its own
economics depend on. The era you choose decides whether your best partners keep building
for you.
The fine print. The model on the cover sheet matters less than who controls team design,
whether there is a floor and a quality gate, and whether the outcome is measured or merely
claimed. The hour is not always the villain; handing the provider a fixed org chart is.
The proof. The 5% of companies that see real returns from AI are not better at the technology.
They are better at aligning incentives, and incentives live in the commercial model.
The fix. Treat that model as a living decision, repriced against impact rather than the renewal date.
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