World's Fair 2025
The Billable Hour is Dead; Long Live the Billable Hour — Kevin Madura + Mo Bhasin, Alix Partners
Overview
This talk explores how AI, particularly generative AI, is reshaping knowledge work and professional services. The core thesis is that AI can significantly compress the initial data ingestion and analysis phases of engagements, freeing up experienced professionals for higher-value strategic tasks. This shift moves beyond traditional leverage models to a future where AI replicates and scales the expertise of senior individuals.
Who should watch
- AI Engineers and Builders
- Product Managers
- Consultants and Advisory Professionals
- Anyone interested in enterprise AI adoption
- Those facing challenges with data processing and analysis
- Professionals seeking to increase productivity and impact
Key takeaways
- AI is poised to disrupt professional services and knowledge work, though likely not as steeply as software engineering due to the messiness of real-world data.
- The traditional professional services model, relying on junior-senior leverage, is evolving. AI enables a hybrid model by scaling senior expertise.
- AI significantly compresses the upfront data ingestion and normalization phase of engagements, reducing human effort from potentially 50% to 10-20%.
- Generative AI allows for the analysis of 100% of a data corpus, rather than just a prioritized subset, leading to more comprehensive insights and better outcomes.
- Key AI applications demonstrated include unstructured data categorization using structured outputs and tool calls, and enterprise-scale Retrieval Augmented Generation (RAG) for querying large document sets.
- Extracting structured information from documents, like credit agreements, is a powerful application that can be scaled across vast numbers of documents, reducing review time from days/weeks to minutes.
- Building user trust in AI outputs involves exposing model confidence levels, such as using log probabilities to indicate how confident the model is in specific extracted values.
- Successful enterprise AI adoption requires strong partnerships with business stakeholders, regular demonstrations of capabilities, and a focus on measurable ROI rather than just the latest AI trends.
Notable quotes
*AI can now look at 100% of the corpus of data, whatever that might be, and you can start to derive insights.*
*We've been able to achieve 95% accuracy across 10,000 categorizing 10,000 vendors. Doing in minutes what would have taken days at an order of magnitude less cost.*
*It is magic when it works and it works at scale. It is a total unlock particularly for non-technical folks.*
Unofficial community note. Prefer the recording for nuance.