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Feb 09
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SHORT
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Ali Ghodsi
CEO, Databricks
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Enterprise clients are using AI to aggressively squeeze costs out of vendors, auditors, and consultants. Tasks that used to justify high fees (e.g., analyzing earnings calls, auditing financial data) can now be done by AI agents in minutes. Clients are demanding fee reductions because they know the vendor's cost of labor has dropped, or they are bringing the work in-house. KPMG was pressured by clients to lower fees because AI made their auditing work cheaper. RBC analysts now use AI to synthesize earnings calls in 15 minutes, work that previously took days. High-end strategic consulting may remain insulated if it relies on human relationships and complex judgment rather than data processing. |
CNBC
Under the hood of the AI economy: Databricks ...
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Feb 09
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SHORT
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Ali Ghodsi
CEO, Databricks
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Corporate clients are using AI to automate complex analysis and are subsequently pressuring human vendors to lower their prices. If an AI agent can read earnings calls, compare competitors, and generate a report in 15 minutes (work that used to take days), the value of the human service provider drops. Clients will no longer pay high fees for billable hours that AI has rendered obsolete. KPMG was pressured by a client to lower audit fees because AI made the work cheaper. Royal Bank of Canada (RBC) analysts are using agents to do equity research in minutes. Regulatory requirements may still mandate human oversight, maintaining a floor on pricing. |
CNBC
Preparing for another tech wipeout: Databrick...
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