The market is pricing a new question: can services firms own the AI upside?
The selloff isn't just sentiment. It's a signal that investors believe AI may compress traditional labor-based revenue modelsunless firms can pivot from 'hours billed' to 'outcomes delivered.'
What investors want to see now
- Credible productivity math: where AI reduces cost, improves speed, and doesn't simply lower pricing power.
- Clear productization: reusable platforms, accelerators, and IP that scale beyond headcount.
What this means for buyers of IT services
- Contracts may shift toward outcome-based models and shared savings.
- Vendor differentiation will move to governance, security, domain expertise, and integration capability, not generic 'we use AI too' claims.
The near-term reality
The winners will likely be the firms that can answer a blunt executive question with evidence: How does AI change delivery economicsand why should I believe you'll capture the value, not lose it?