Hippie CEO Life #56 - Agencies Have Discovered ChatGPT
A behind the scenes view of building a more humanistic company.
June 1, 2023
“Embrace change, but never let go of your values.”
—Dalai Lama
i've been doing a lot of pondering lately. When i say a lot, i mean the kind of thinking that keeps you up at night, the kind that has you scribbling ideas on a napkin at 3 a.m. The reason? i've been thinking about billing models and the dawn of AI and automation in the agency world.
We're on the cusp of a new era. An era where our shiny tools aren't just hammers and nails, but complex algorithms and lines of code. These new tools are swift, they're efficient, and they're ready to play the game. But how does this new player affect the rest of the team?
Think about this: An AI tool, fresh out of the box, knocks out a task in a quick 5 minutes. Now, this is a task that a human, even on their best day, would take 2 hours to complete. So, how does the agency bill the client? For the AI's turbo-charged 5 minutes, or the human's 2-hour equivalent?
As we step into this brave new world, harnessing these technologies to pave our way to greater efficiency and enhanced margins, we're left with the question: What happens to the billable hour model? Does it fade away, like an old photograph, or does it evolve to keep pace with our changing landscape?
If agencies boost their hourly rates (fairly and ethically, of course), as the time needed to solve a problem decreases, where does that leave us? And if agencies are unable to justify this rise in rates, do they change their tune from transactional engagements to more high-value business consulting?
And let's not forget our co-travelers on this journey – the clients. As we progress, will they be handed a less personal experience, or will AI, in its cool efficiency, actually deliver superior results in less time, making up for the absence of human connection?
It's like standing at the foot of a mountain, looking up at the winding path. The climb is daunting, yes, but it's also filled with possibilities.
How do you envision the role of AI and automation in reshaping the agency world, especially those tied to the billable hours model? And how do we ensure that we're not just walking, but walking in the right direction, ethically and fairly?
i've been building a services company for the last decade, and i've never been shy about my disdain for the billable hour model. i see it as a relic of the past, something that's outlived its usefulness. But as we step into this new era, it's not just about progress and efficiency. It's about fairness, it's about ethical standards, and it's about the people we're here to serve – our clients.
As we keep climbing this mountain, hand in hand, let's remember that it's not just about reaching the peak. It's about the climb itself. It's about looking out for each other, helping each other, ensuring that every step we take is a step towards a fairer, more equitable future.
So, what are your thoughts? How do you see this new era shaping up? And remember, we're all in this together, so what can i do for you today?
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I, too, don't like the billable hour. I've been doing, for the most part, value pricing, for the last couple of years and I find it works well (with some pitfalls). I have clients that think AI will allow them to do everything instantly and without much effort. I have to spend some time discussing that, but that is part of the process!