AI rewrites the economics of Amazon's cloud-consulting business
Business Insider
February 26, 2026
AI-Generated Deep Dive Summary
AI is reshaping the consulting industry by driving demand for more efficient, cost-effective solutions. Amazon's ProServe cloud-consulting unit, which influences over $10 billion in annual revenue, is at the forefront of this shift, with clients pushing for AI-driven discounts and fixed-price projects. Major customers like Booking.com and Danske Bank are renegotiating contracts to secure "AI-delivered pricing" that offers faster results at lower costs. This trend reflects broader industry changes, as traditional billable-hour models face pressure from automation and generative AI tools.
ProServe is adapting by reorganizing its operations around AI agents, which it describes as "digital employees." The unit aims to transition up to 75% of projects to fixed-price deals by this year, aligning with client demands for agile, outcome-based engagements. This shift is not unique to ProServe; other major consulting firms like Accenture and Deloitte are also emphasizing outcome-based pricing and investing heavily in AI technologies. McKinsey has even added 25,000 AI agents to its workforce, while PwC, EY, and Boston Consulting Group are accelerating AI deployments.
The move toward AI-driven consulting models is driven by efficiency gains and cost savings for both firms and clients. ProServe expects significant productivity improvements, with automation potentially handling up to 90% of certain tasks. This transformation positions AWS as a leader in building and managing AI agents, while enabling faster innovation for customers at lower costs. As the industry evolves, consulting firms are increasingly prioritizing measurable results over labor-based work, reshaping how services are priced and delivered.
For businesses, this shift matters because it promises more value for their money through faster, smarter solutions. The consulting industry's embrace of AI agents and outcome-based pricing is not just a trend—it's a fundamental reimagining of how services are delivered. Companies like ProServe are leading the way, but the entire sector is moving toward a future where efficiency, automation, and clear ROI drive success. This shift could redefine the economics of consulting, making it more accessible and impactful for businesses worldwide.
Verticals
businessfinance
Originally published on Business Insider on 2/26/2026