What is
AI purchase negotiation?
AI purchase negotiation is an approach in which an AI agent negotiates prices with suppliers within criteria built from years of accumulated data and human expertise, and records every step. The buyer decides only the exceptions, while the agent handles repeated negotiations.
How it differs from negotiation by people
| Aspect | Negotiated by people | Negotiated by an AI agent |
|---|---|---|
| How many negotiations | As many as the buyer has time for | All at once, regardless of the number of suppliers |
| Negotiation time | Half a day to a day per supplier | A few minutes per supplier |
| Consistency of criteria | Varies with the buyer and the situation | Applies the same criteria, built from accumulated data, every time |
| Records | Scattered across email and calls | Every offer and response is kept automatically |
| Know-how | Stays with the individual buyer | Deal results build up as the baseline for the next negotiation |
What to hand over and what to keep
Good work for an AI agent
- Repeat purchases of the same items
- Items with several suppliers whose quotes must be compared at once
- Small deals that used to go through without negotiation
- Deals that need negotiation records for audits
Work people keep
- Adding field experience and expertise to the negotiation criteria
- Approving terms outside the criteria
- Strategic deals such as long-term contracts and finding new suppliers
- Managing supplier relationships
Start small, then expand
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Organize data
Organize items, suppliers and recent purchase prices. You can start in Excel.
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Build the criteria
Build the target price, concession range and award criteria for each item from purchase history, negotiation records and the buyer's experience.
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Pilot
Run a trial with some suppliers, starting with items you buy repeatedly.
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Expand
Add items and suppliers based on the results, refining the criteria as you go.
Related client stories
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AI purchase negotiation trained on tens of thousands of real deals
Working with KT Commerce, AIO2O trained a negotiation model on real transaction data so that an AI agent can take over the price negotiations that repeat across business-to-business deals.
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Automated raw-material purchase negotiation for manufacturing
AIO2O demonstrated AI negotiation applied to raw-material purchasing in photonics manufacturing, where specifications are complex and suppliers are few.
AIO2O's AI purchase negotiation solution
NEGOTIUM negotiates prices with each supplier one-to-one, in parallel, through to the award.
Frequently asked questions
What is AI purchase negotiation?
An approach in which an AI agent negotiates prices with suppliers within criteria built from years of accumulated data and human expertise, and records the results. The buyer decides only the exceptions.
Could the AI agree to terms outside the criteria?
It is designed not to. The criteria come from years of accumulated data and human expertise, and terms outside them are passed to the buyer.
Which items should we start with?
Repeat purchases of the same items, items with several suppliers, and small deals that used to go through without negotiation tend to show results first.
What changes for suppliers?
Because negotiation follows the same criteria, suppliers can more easily predict what terms to offer. The negotiation history also makes it easy to check terms again.
What do human buyers do?
They add their expertise to the criteria, approve exceptions outside the criteria, and focus on strategically important deals and supplier relationships.
AIO2O · Last updated