#outcome-based-pricing

#outcome-based-pricing

This may be the last year that law firms can expect billing rate increases to drive financial stability, according to a new survey of more than 800 senior finance and legal professionals in large firms across North America, the United Kingdom and Ireland. Technology company BigHand's 2026 finance report suggests that firms can no longer rely on traditional measures of profitability, as clients are demanding more efficiency and predictability amid the increased adoption of artificial intelligence across the legal profession, according to Law.com.

From law firms to in-house legal teams, the rules of value are being rewritten. The question is: Who's ready to lead the change? In the first episode of 2026 for the UpLevel View podcast, Stephanie Corey and Ken Callander sit down with Rita Gunther McGrath, Columbia Business School professor and Wall Street Journal columnist, to talk about how AI is forcing professional services to price outcomes instead of hours.

In the year ahead, your relationship with your software vendors may change radically, perhaps even a greater shift than the switch from disks to Software as a Service. You may start paying only for the actual results the software delivers, versus simply paying a monthly charge that you pay even if the application sits on a shelf.Also: 6 essential rules for unleashing AI on your software development process - and the No. 1 risk

Problem: If your pricing is tied to human users, but AI is doing the work, you're leaving money on the table (or worse, annoying customers with irrelevant seat counts). Reality: Customers don't care about seats. They care about results. Manny's take: "Don't sell software. Own outcomes." If your product helps a customer resolve 1,000 support tickets a month, why charge for seats? Charge for resolved tickets.