AI will end hourly billing: Microsoft South Asia President says inefficiency economy is on its way out

At the India AI Impact Summit 2026, Puneet Chandok, President of Microsoft India and South Asia, highlighted a significant shift in business service billing due to the rise of artificial intelligence. He emphasized that traditional revenue models based on time spent, often referred to as an "inefficiency economy," are likely to be disrupted as AI continues to advance. Chandok illustrated this concept by pointing out that professionals like lawyers and doctors often profit from extended engagements. "Your lawyer makes more money when the case goes on for longer. Your doctor makes more money when you're sick for longer," he explained. This reliance on time can hinder efficiency, but with AI's capacity to deliver quick outcomes, the focus will shift from hours worked to results achieved. He argued that AI's ability to draft documents in mere seconds drastically changes the billing landscape. "If AI can draft a legal document in 30 seconds, your lawyer will not be able to charge you by the hour," he asserted, suggesting that service providers will increasingly be evaluated based on the value they generate rather than the time they invest. Chandok also noted the remarkable advancements in AI over recent years, stating, "AI is unlike anything I've seen before, at least in my lifetime." He reflected on the unprecedented potential of AI to create intelligence, emphasizing that this capability could redefine value across industries. As businesses begin to leverage AI for intelligence, Chandok envisions a future where this resource becomes abundant and accessible. He stated, "Imagine a world where intelligence moves from something scarce and expensive to something abundant and easy to work with. This is the future we are preparing for, and it will fundamentally alter how we conduct business and govern our nation."