Can AI replace your purchasing manager?
Yesterday, I found myself engrossed in an article that highlighted a fascinating trend in the world of business negotiations. It was a piece on Engadget about how Walmart’s suppliers would rather negotiate with an AI than a human. This revelation got me thinking about the implications of AI in business negotiations and how it could reshape the landscape of deal-making.
AI: The New Negotiator on the Block
Walmart, a global retail giant, has been using a chatbot from Pactum AI to automatically negotiate some supplier deals. The AI chatbot not only saved an average of three percent on contracts but was also preferred by the suppliers. Three out of four suppliers preferred haggling with the AI over a human, according to Walmart.
The AI system asks Walmart to set its budget and requirements, such as discounts and payment terms. It then compares a supplier’s demands with trends, commodity values, and competitors’ costs. After that, the AI can strike a deal within a matter of days, rather than the weeks or months of conventional talks.
The Implications of AI in Business Negotiations
The use of AI in business negotiations is a testament to the transformative power of technology. It’s a clear indication that we are on the cusp of a significant shift in how business is conducted. This shift is not just about efficiency and cost savings; it’s about fundamentally changing the dynamics of business relationships.
The use of AI in negotiations could lead to more objective and data-driven decisions. It could eliminate the influence of emotions and biases that often cloud human judgement. Moreover, AI can process vast amounts of data and identify patterns that humans might miss, leading to more informed and strategic decisions.
Preparing for the Future
At Jack Ross, we’ve always been at the forefront of embracing technology to enhance our services and operations. We’ve seen the benefits of automation in accounting processes and have encouraged our clients to do the same. The advent of AI in business negotiations is another wave of change that we need to prepare for.
The use of AI in negotiations doesn’t mean that human negotiators will become obsolete. Instead, it means that their role will evolve. They will need to work alongside AI, leveraging its capabilities to make better decisions and negotiate more effectively.
The Road Ahead
The integration of AI into business negotiations is still in its early stages. However, its potential is immense. As AI technology continues to evolve and improve, we can expect it to play an increasingly significant role in business negotiations.
The future of business negotiations is here, and it’s powered by AI. It’s time for us to embrace this change and harness its potential to drive better outcomes for our businesses. As we’ve learned from our experiences with automation, those who adapt and evolve with technology are the ones who thrive in the long run.
I invite you to join the conversation. How do you see AI impacting your business negotiations? Let’s explore the possibilities together. Call is on 0161 832 4451 or complete the webform and we will be in touch.