WorkThe story, in brief

Deloitte tells its own consultants: AI is coming for the billable hour

"Our model is toast." That's what Deloitte consultants are hearing in internal presentations about AI agents replacing the billable hour by 2035.

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People, judgement and the changing nature of work.AI illustration by KeyNews
The KeyNews take

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.

The key facts

5 to know
  1. Deloitte internal presentation projects hourly billing will shrink to 'thin sliver' by 2035

  2. AI agents positioned as replacement for traditional consulting delivery model

  3. McKinsey and BCG actively searching for alternative revenue models

  4. Quote from consultant: 'Our model is toast'

  5. Published June 29, 2026 — indicates forward-looking strategic concern within Big Three consulting

Go to the source

The Decoderthe-decoder.com

Publisher excerpt: 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…
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