Kemp Munnik, structuring and tax strategy specialist.
The world of tax consulting is on the cusp of a transformation few could have predicted just a decade ago. I recently had an in-depth conversation on this topic with Johan Steyn, a well-known artificial intelligence (AI) thought leader.
AI is not only revolutionising how tax firms operate but also fundamentally altering client expectations. “Today’s clients are increasingly tech-savvy, leveraging AI tools themselves to streamline their financial operations,” he told me.
As a result, they expect their tax advisors to deliver faster, more insightful and more efficient services. The era of hourly billing is rapidly drawing to a close, and firms that fail to adapt risk being left behind.
AI’s transformative power
AI adoption in tax and accounting is accelerating at a remarkable pace. According to Reuters, AI could free up to 12 hours per week for tax professionals within five years by automating routine tasks such as data entry, document review, e-mail drafting, fraud detection and forecasting (Thomson Reuters, 2025).
Generative AI assistants are already handling complex research and technical analysis, empowering professionals to focus on strategic advisory work and client relationships.
AI is not replacing tax professionals like myself − it is transforming our roles.
Steyn added that AI-powered tools are also enhancing data analysis and decision-making by evaluating financial statements, detecting inconsistencies and highlighting potential tax risks, which improves accuracy and timeliness of advice, while reducing human error (LinkedIn, 2025).
I have already seen how predictive analytics can allow firms to forecast tax liabilities and optimise planning strategies, while natural language processing improves interaction with tax software and extraction of relevant information from unstructured data (Deloitte UK, 2024).
Clients are no longer passive recipients of tax advice − they are active participants, often equipped with their own AI-powered tools for financial analysis and compliance. As clients become more efficient and insightful, they expect the same from their tax vendors (Rightworks, 2025).
They are also increasingly aware of the efficiencies AI brings to tax work, questioning the logic of paying for hours spent on tasks that can now be completed in minutes. This is leading to mounting pressure for billing models that reflect value delivered, not just time expended.
The traditional hourly billing model, once the bedrock of professional services, is now under threat. This model ties revenue to time spent, which can discourage innovation and efficiency.
AI’s automation of repetitive processes means many tasks now require far fewer billable hours, challenging the financial viability of the hourly model (RSM US, 2024).
The profession is witnessing a marked shift toward value-based, fixed-fee and retainer pricing models. These approaches reward efficiency and align firm incentives with client expectations.
According to a recent article by Harness, as firms move into recurring advisory services, it becomes essential to pivot away from hourly billing and toward retainer-based pricing. This shift allows firms to be compensated for the increasing value they create for clients, especially as service offerings become more comprehensive (Harness, 2024).
Steyn says he is already noticing this change. “Clients are increasingly questioning the value of paying for hours, as they do not have control over the number of hours spent and are not guaranteed a desired result.”
Those who pay for agreed outcomes based on one of the above models are much more willing to pay a premium because they can see the value and know upfront what their cost will be.
Value-based billing and fixed pricing models incentivise consultants to work more efficiently and reduce their costs on projects, making them more profitable. Therefore, AI capabilities in consulting firms are becoming more essential and valuable.
In my experience, retainer-based pricing is gaining traction as a way to reflect the true value of tax advisory services.
With this model, firms can offer a diverse range of services − such as tax planning, equity compensation advisory and compliance for trusts or crypto assets − under a predictable monthly or annual fee. This not only provides revenue stability for firms but also sets clear expectations for clients regarding the scope and value of services provided (Harness, 2024).
Transitioning to a retainer model requires careful communication and a clear articulation of value. Firms must be transparent about what is included in each retainer tier, adjust pricing as client needs evolve, and ensure services are tailored to attract high-value clients with complex needs.
AI is not replacing tax professionals like myself − it is transforming our roles. There is growing demand for AI specialists, data analysts and professionals with strong problem-solving and communication skills. Firms must invest in training and transparent billing practices that reflect the blend of human expertise and AI-driven efficiency (EY Global, 2025).
Steyn stressed that the adoption of AI brings challenges. “Data security and the accuracy of AI-generated information are top concerns.” Most professionals support strong ethical standards and human oversight, especially when it comes to providing direct client advice (Thomson Reuters Institute, 2025).
I firmly believe that AI will continue to drive innovation in tax consulting, from advanced natural language processing, to agentic AI capable of independent decision-making (Accountancy Age, 2025).
Tax authorities are also embracing digital transformation, moving toward real-time reporting and compliance. Firms that adapt quickly will not only improve efficiency but also enhance client relationships and open new revenue streams (TaxGPT, 2025).
Steyn agrees with me that tax consulting is at a crossroads. We agree that AI is revolutionising workflows, improving client service, and rendering the hourly billing model increasingly obsolete.
The future belongs to firms that embrace value-based and retainer pricing, invest in new skills, and uphold the highest standards of ethics and transparency. The message is clear: adapt now, or risk being left behind in the AI-driven future of tax consulting.
