tyler-smith.com · Questions & Answers

As AI makes our technical deliverables cheaper and faster for clients to generate themselves, we are losing our pricing power. How do we reposition our services on the V/TO® to remain highly valuable?

If your business model is built on doing things that machines can now do for free, your company is facing existential risk. To protect your business and prepare for a successful long-term transition, you must shift your strategic positioning immediately.

The rule here is simple: seek to be an indispensable complement to technologies that are becoming cheap and plentiful, rather than competing directly with tasks machines can do cheaper and faster. If data synthesis, basic coding, or document draft generation are now cheap commodity tasks, your value is no longer in producing them. Your value is in interpreting them, applying strategic judgment, and holding clients accountable to their goals.

On your V/TO®, redefine your target market and your three unique differentiators to focus on high-value human execution. Update your Core Processes to show how you use AI to handle the fast execution, allowing your team to spend their time on advanced advisory work. This transition shifts your firm from a transactional vendor to a strategic partner. It preserves your pricing power, improves your profit margins, and builds a highly resilient business that acquirers will pay a premium for because it cannot be easily commoditized by the next software update.

Category: AI & Business Strategy

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