tyler-smith.com · Questions & Answers

Our clients are demanding to know whether their deliverables were produced by AI, and some are asking for fee reductions if automated tools were used. How do we adjust our Proven Process and client agreements to resolve this pushback?

When clients demand fee discounts because you use AI, the root cause is almost always an outdated commercial model based on inputs rather than outcomes. If your contracts and Proven Process describe your service in billable hours, word counts, or manual tasks, clients will naturally discount the value when they realize software did the heavy lifting.

Solve this by modernizing your Proven Process and client agreements around three clear operating rules:
- Outcome-based value definition: Redefine the milestones on your Proven Process to focus entirely on business deliverables, verified results, and risk mitigation. Stop detailing the raw production hours required to create deliverables.
- Explicit quality governance: Update your documented methodology to show that AI is used strictly for accelerated baseline synthesis, while every final recommendation undergoes rigorous human verification, stress-testing, and expert sign-off.
- Professional liability and warranty: Emphasize that clients are not paying for keyboard time. They are paying for your commercial accountability, subject-matter judgment, and the legal responsibility your firm assumes for the accuracy and efficacy of the work.

Update your client agreements to state clearly that your firm utilizes advanced technological tools, including AI, within secure and confidential environments to optimize delivery speed. Frame tool usage as an operational standard that ensures the client receives faster, higher-fidelity intelligence rather than an excuse for discounted rates.

Category: AI & Business Strategy

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