Pactum created a chatbot system. Walmart’s AI is programmed to operate based on pre-defined requirements and budgets. To reach a fair and cost-effective agreement, the chatbot system analyses and compares the supplier’s demands with industry trends, commodity values, and competitors’ costs. The use of AI in this process not only saves time, but it also results in better decisions because AI can analyse and process more data points than a human negotiator.
This chatbot system is currently used to negotiate contracts for store necessities such as shopping carts and other products rather than products sold on the shelves. Walmart has stated that the chatbot system is not meant to replace human negotiators, but rather to aid in the negotiation of contracts that do not necessitate extensive negotiations. The chatbot system still requires human oversight because the deals made by the chatbot must be approved and authorised by a real person.
