The Services Industry's Incentive Problem
Service companies' incentive misalignment steers AI adoption toward gradual change, not transformation
“Service companies optimize three things: how to get into your wallet, how to stay in it, and how to increase their share of it.”
The No Priors segment argues that major services firms like Accenture and McKinsey are structurally incentivized to maximize billing hours rather than drive genuine business transformation. Software vendors compound this by designing products for current 'human assembly line' workflows rather than rethinking them. This matters for AI newsletter readers because it frames a key structural barrier to enterprise AI adoption that goes beyond technology readiness.