Walmart suppliers prefer to negotiate with AI rather than a human

The chatbot even helps Walmart save money.

Never mind using AI to write stories: Walmart finds it useful for closing a good deal. The retailer tells Bloomberg that it uses a Pactum AI chatbot to automatically negotiate certain deals with suppliers. The technology not only saves an average of 3% on contracts, it is better than suppliers. According to Walmart, three out of four vendors would rather haggle with an AI than a human.

Pactum's system simply asks Walmart to set its budget and requirements, such as discounts and payment terms. It compares a supplier's demands with competitors' trends, product values ​​and costs. After that, the AI ​​can close a deal in days, rather than weeks or months of conventional talks. Walmart first tested the tool in Canada, but has since expanded its use to the United States, Chile and South Africa.

The AI ​​currently only trades shopping carts and other store essentials, rather than the products you find on the shelves. It also does not fully replace humans. Right now, Pactum's technology is mostly used to save money on contracts that aren't necessarily worth a lot of time. The bot still has to negotiate with a real person, so completely automated chats are no longer an option in the near future. It's more about easing the load on busy procurement teams than avoiding hiring.

This might not reassure people worried about their work. The reliance on AI comes at a good time, as many companies are making mass layoffs to support a tough economy. Chatbots like this can help Walmart and others minimize the effects of job cuts and hiring freezes. Additionally, Walmart has spent years experimenting with robots that could reduce staffing requirements. Humans aren't going away anytime soon, but business isn't as dependent on them as it once was.