The blog post on the Harvard Program on Negotiation(PONS) raised an interesting and timely issue: using chatbots to assist in negotiations. In her post, “Chatbot Negotiations: What can AI Do for You?” author Katie Shonk (August 8, 2024) relays the story of Walmart’s use of a chatbot to negotiate with suppliers. As Walmart has more than 100,000  suppliers, it is a daunting task to deal with each of them individually. Thus,  enters the chatbot. In a three-month pilot program using a chatbot created by Pactum, the chatbot negotiated with 89 suppliers. The buyers helped train the chatbot by providing typical negotiation situations that the chatbot used to develop scripts. “The chatbot closed deals with 64% of the suppliers in an average of 11 days for an average 1.5% cost savings….” (Id.) More importantly, 83% of the buyers rated the negotiations with the chatbot favorably.  (Id.)

So, can chatbots be used for other types of negotiation?  Most definitely! The blog post discusses its use in salary negotiations and, more specifically, in obtaining advice on such negotiations. (Id.)  As  others have cautioned, the chatbot gives the best advice “when asked “a specific, individual question as part of a thread” …” (Id.)  The more specific the question or prompt, the better the answer  (unless the chatbot starts hallucinating!)

Chatbots can also play a role in mediation, whether it is a party using one to decide on their next proposal or a mediator  using it to break an impasse. A quick internet search will reveal several chatbots that can be helpful in these situations. Just remember, it is crucial to be specific in your prompt to get a useful answer. And, of course, never share confidential information, as chatbots are public and accessible to  others.

So… in this brave new world, do not feel hindered by your lack of negotiation skills. A chatbot can always come to your rescue.

… Just something to think about.

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