The OverheardJune 29, 2026via The Decoder
Deloitte tells its own consultants: AI is coming for the billable hour
Why it matters
Major consulting firms are privately acknowledging that AI agents will fundamentally disrupt their core revenue model. This signals how seriously enterprise leadership is planning for agent-driven service delivery, and what it means for professional services margins.
Key signals
- Deloitte internal presentation projects hourly billing will shrink to 'thin sliver' by 2035
- AI agents positioned as replacement for traditional consulting delivery model
- McKinsey and BCG actively searching for alternative revenue models
- Quote from consultant: 'Our model is toast'
- Published June 29, 2026 — indicates forward-looking strategic concern within Big Three consulting
The hook
"Our model is toast." That's what Deloitte consultants are hearing in internal presentations about AI agents replacing the billable hour by 2035.
An internal Deloitte presentation projects that the consulting industry's classic hourly billing model will shrink to a thin sliver of the total market by 2035, replaced by AI agents. "Our model is toast," one consultant summed up the message. McKinsey and BCG are already searching for alternative revenue models.