Overview

Challenges

The professional services industry is facing an existential reckoning due to AI economics, which demands an urgent shift from the effort-based PS 1.0 model to a value-based PS 2.0 framework focused on guaranteed customer outcomes. This playbook provides a comprehensive seven-step roadmap for PS leaders, detailing how to institutionalize services engineering, adopt outcome-based pricing, and evolve consultants into augmented strategists who drive realized business value.

Summary

The article discusses the transformative shift in technology professional services from traditional effort-based models (PS 1.0) to an AI-powered, value-oriented approach (PS 2.0). It emphasizes the crucial need for companies to adapt to AI Economics™ by optimizing their processes, adopting new financial models, and evolving their workforce to remain competitive in a rapidly changing landscape.

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Included in the full report

Adopt AI Economics:

Traditional pricing models like per-seat and hourly billing are becoming obsolete due to the efficiency of AI agents performing tasks at a lower cost.

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Baseline Self-Assessment:

Organizations must evaluate their current practices to identify foundational gaps that may hinder successful AI integration into their service models.

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Emphasize Customer Outcomes:

The shift from supporting product sales to realizing customer outcomes is essential for business transformation and success in the PS 2.0 era.

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Develop a Services Engineering Function:

Companies should enhance their offerings from people-based services to modular, knowledge-driven solutions that leverage AI capabilities for efficiency.

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Evolve Workforce Roles:

Transitioning from traditional roles to positions focused on orchestration and value delivery will maximize the benefits of AI integration within teams.

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Publication date:

January 22, 2026

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