Best Practice Report

AI Powers A New Service Provider Pricing Paradigm

Pay For The Tractor, Not Just The Farmer

Jan 07, 2026

Summary

The radical improvements in service delivery stemming from AI-powered work platforms for software, data, consulting, tax, audit, and managed services require new pricing models for services. The days of time and materials as the baseline for achieving productive outcomes are over. It’s time to pay for the assets — the equipment, software, models, knowledge assets, and platforms — as an explicit or implicit line item in the contract. Pay for the tractor, not just the farmer, to achieve your goals. Here’s how.

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