Analysis

AI for software houses and IT firms: what it changes in teamwork, pricing and contracts

This article is for owners and management boards of software houses and IT services companies. Clients ask how your team uses AI and increasingly expect a lower price because of it. We look at what research says about how much faster developers work, how this affects billing and contracts, and how to measure the effect in your own team.

Author: Kacper Włodarczyk, CEO of ALGORCOMPPublished: May 30, 2026Reading time: 11 min readArtificial intelligenceFor: Mid-sized company
AI for software houses and IT firms: what it changes in teamwork, pricing and contracts

How much AI really speeds up developers – what the research says

There is no single answer to how much faster developers become. The result depends on the type of task, the developer’s experience and how well the tool knows the project. The table below compares three frequently cited studies that show this spread well.

The GitHub experiment involved one simple task written from scratch. The METR study covered experienced developers working on large projects they had known for years. In the second case, AI got in the way more than it helped, although participants were convinced of the opposite.

METR points out that its results relate to tools from early 2025, and in 2026 it described them as out of date itself. The lesson still matters, though: the team’s perception and the measurements can diverge sharply. That is why a claim like “we are twice as fast” has to be checked against the numbers.

The authors of the DORA report describe AI as an amplifier. In companies with well-organised processes it speeds up work; in chaotic companies it exposes their weaknesses faster.

Three studies on the impact of AI on developers’ work
StudyWho took part and what they didResult
GitHub and Microsoft Research, 2023Developers writing a simple HTTP server in JavaScript from scratchThe group using GitHub Copilot finished the task 55.8% faster
METR, 202516 experienced developers, 246 tasks in their own large projectsWork took 19% longer with AI; participants believed they had sped up by 20%
DORA 2025 (Google), surveyNearly 5,000 IT professionals from many countriesAbout 90% use AI; productivity gains are mainly respondents’ own assessment

Which tasks AI helps the team with, and where it calls for caution

You gain most on repetitive, well-defined work. Risk grows where mistakes are costly and hard to spot. The list below orders typical tasks from the safest to the most demanding.

The 2025 Stack Overflow survey puts its finger on the main problem. Developers complained most often not about code that was completely wrong, but about code that was “almost right”. Such code passes a cursory check, and the defect may only surface after the software has been handed over to the client.

  • Documentation and change descriptions. The gain is clear and the risk is low, because errors are easy to spot when reading.
  • Skeletons of new modules and boilerplate code. AI quickly produces a first version, and the developer adapts it to the project.
  • Automated tests. AI suggests test cases, but someone has to check that they test the right behaviour, not just what the code already does.
  • Initial code review. The tool will catch some obvious defects before an experienced developer reviews the code, but it will not replace that review.
  • Migrating old code to newer library versions. AI cuts down tedious work, provided the project has good tests.
  • Billing, permissions and security logic. Here, AI-generated code needs at least as much scrutiny as code written by a new hire.
AI for software houses and IT firms: what it changes in teamwork, pricing and contracts

How AI changes the way you bill clients for projects

With time-and-materials billing, where you charge for hours worked, every hour saved reduces your revenue. Clients know this and increasingly ask why the rate has not changed if the team uses AI.

You do not have to abandon hourly billing straight away. It is worth, however, choosing the model deliberately to suit the type of work. The table below shows who benefits from the speed-up in each of three common models.

A fixed price only makes sense if you can estimate AI-assisted work well. Without a few months of measurements on your own projects, it is easy to end up with a quote in which the unknowns eat up the entire gain from AI.

Who benefits from faster work under different billing models
ModelWho gains from AIRisk for the IT companyWhen it fits
Time and materials (hours)Mainly the client – it pays for fewer hoursLower revenue with the same teamUnclear scope, maintenance, supporting the client’s team
Fixed price for a defined scopeThe IT company, if it estimated the work wellWrong estimates and disputes over scope changesWell-defined projects and repeatable types of implementation
Outcome-based fee or fixed subscriptionBoth sides, if the outcome measure is fairDifficulty agreeing the measure and disputes over measuring itLong-term collaboration on product development and maintenance

How to use AI in proposals and project estimation

Preparing a proposal often takes several days of work from the most experienced people in the company. AI can shorten this work, but it will not take over responsibility for the estimate.

It works best with your own material. The company collects data from completed projects: scope, estimate, actual time and problems encountered. AI compares a new request with this database and prepares a draft, which the architect then corrects.

Be wary of estimates that AI produces without data from your projects. They sound convincing, but they are based on general patterns, not on how your team works. Below are the tasks in which AI works best for proposals.

  • Summarising the request for quotation (RFQ) and listing questions for the client about unclear requirements.
  • A first breakdown of the work into stages and tasks, which the architect checks and corrects.
  • A draft technical description based on similar earlier proposals.
  • Comparing the estimate with the actual time spent on similar past projects.
  • Checking that the proposal is complete: does it include testing, deployment, documentation and the warranty period?
A team of developers reviewing code prepared with an AI tool before handing it over to the client

Clients do not pay for lines of code; they pay for working software. AI changes the cost of producing it, but it does not take away your responsibility for the result.

Generalist or AI specialist – how to position your company

Many IT company owners are wondering whether to rebuild their offering around AI. This is a decision about the team, sales and risk, not just about a slogan on the website.

A generalist company can use AI mainly to cut its own costs without selling it as a separate service. An AI implementation specialist competes on expertise, but it needs experienced people and operates in a narrower market.

Many companies take a middle path: they keep their existing offering and set up a small team for AI projects. What matters is that this team has real projects, not just an entry in the service catalogue.

Three ways an IT company can position itself on AI
DirectionWhat it meansWhat it requiresMain risk
Generalist with AI insideAI lowers the team’s cost of work; the offering stays the sameRules for using tools and measuring the effectPrice pressure from clients and cheaper competitors
AI implementation specialistAI as the main service: chatbots, AI agents, document analysisPeople with experience in AI projects and knowledge of the regulationsA narrower market and fast-changing tools
Middle pathExisting offering plus a small team for AI projectsA clear division of roles and the first successful projectsAn AI team with no projects that exists only in the sales offering

What to put in the contract when your team writes code with AI

Clients increasingly raise AI as early as the contract negotiations. They want to know whether their code will go to external services, who is liable for errors and who owns the rights to the code.

Copyright needs particular attention. Polish copyright law protects works that result from creative activity, and the prevailing view is that this means human creativity. Code generated entirely by AI may therefore not be a protected work, so it is worth agreeing the contract wording with a lawyer.

If you are building an AI system for a client, such as a chatbot, agree who is its provider within the meaning of the AI Act. Usually it is the company under whose name the system is put into use – sometimes you, sometimes the client. The provider is responsible for, among other things, the obligation in Article 50: the system must tell people they are interacting with AI. Below are the points worth discussing with the client before signing the contract.

  • A list of the AI tools the team uses, and a rule that the client is informed of any changes.
  • Conditions for passing the client’s code and data to AI services, e.g. only to business versions that do not train models on this data.
  • A rule that every piece of code is reviewed by a person before it goes into the project.
  • Transfer of rights to the code, and a description of how the parties treat AI-generated fragments.
  • Licence checks: a tool may suggest a fragment similar to code covered by an open-source licence.
  • Division of AI Act obligations where the subject of the contract is an AI system for the client.

How to measure the effect of AI in your own team

Before you change your price list or promise a client a shorter deadline, measure the effect on your own projects. A few metrics are enough, and most teams already collect them in their task system, e.g. Jira.

Compare the periods before and after introducing the tools, ideally on similar projects. The number of lines of code tells you nothing here, because AI inflates it easily while quality may drop.

Measurement also reveals hidden costs. If tasks finish faster but the number of bugs reported by the client rises, the gain is illusory. The metrics below show both of these effects.

  • Time from starting a task to deploying the change in the client’s environment.
  • Time from submitting code changes to their approval in review.
  • Number of bugs reported by the client after deployment, per task.
  • Share of tasks that come back for rework.
  • Difference between the estimate in the proposal and the actual time worked.
  • The team’s views, collected every quarter in a short survey.

Where to start – a plan for the first three months

Introducing AI in an IT company is best run like any other project: with a goal, measurement and a decision after the pilot. The steps below show a sensible order.

Clients ask how you yourself use AI. The best answer is written rules and figures from your own team, not general statements in a proposal.

  • Month 1: list the AI tools the team already uses, including on personal accounts, and set rules for client data.
  • Month 1: collect data from the last few months for the metrics in the previous section – this is your baseline.
  • Month 2: introduce selected tools in their business versions in two or three teams, and train people to review AI-assisted code.
  • Month 2: prepare a few proposals with the help of AI and compare the time taken and the accuracy of the estimate with your current approach.
  • Month 3: compare the metrics, decide whether to expand and only then change your price list and contract templates.

Related topics in the knowledge base

Read next

FAQ

AI in software houses – frequently asked questions

The questions IT company owners ask most often when they start bringing order to how AI is used.

Can a client forbid the use of AI on its project?
Yes, it is a matter for the contract. If the client decides to do so, factor it into the price and schedule, because the team then works differently from other projects. Also agree whether the ban covers all tools or only those that send code to external services.
Is it worth giving AI tools to junior developers?
In the GitHub experiment, less experienced developers gained more than more senior ones. The risk is that a junior person will not notice an error in code suggested by AI. That is why review by an experienced colleague is particularly important for them.
Which tool should we choose: GitHub Copilot, Cursor or Claude Code?
Tools and their prices change every few months, so there is no single lasting answer. Start with one tool in its business version and test it on your projects for a few weeks. Before buying, check the terms for processing code and whether the vendor may use it to train models.
Will AI mean I hire fewer developers?
You may need slightly fewer people for the same number of projects. More often, though, companies use the time saved to take on more projects or work they previously lacked people for, such as testing and documentation. Base staffing decisions on your own measurements, not on tool vendors’ claims.
Do we have to tell the client that code was written with the help of AI?
The AI Act does not impose a general obligation to label code written with the help of AI. What you disclose and how is decided mainly by your contract with the client. Open rules usually build trust, while hidden tools come to light at the first dispute at the latest.
How should we talk to a client who demands a lower rate because of AI?
Show data from your own measurements instead of general statements. Propose a fixed price for a well-defined scope, where the client pays for the result rather than the hours. Also explain that some of the time saved goes on code review and testing, which protect quality.

About this page

About the author

Kacper Włodarczyk — CEO of ALGORCOMP

Kacper Włodarczyk

CEO of ALGORCOMP

Kacper specializes in implementing Microsoft 365 Copilot, Copilot Studio, Power Platform (Power Automate, Power Apps, SharePoint) and AI agents for mid-sized B2B companies in Poland. He leads dozens of projects covering AI strategy, Power Platform governance, document workflow automation and sales processes. In his writing he focuses on the practical side of AI adoption in organizations — from the first proof of concept to company-wide rollout — with particular attention to data security, compliance (GDPR, NIS2, the AI Act) and return on investment.

Meet the team

Want to bring order to how your IT company uses AI?

In a free consultation, we will help you set rules for using AI on client projects and choose the metrics you will use to check the effect in your own team.

Featured

Related articles