Walmart’s suppliers would rather negotiate with AI than a human
Walmart has been using AI to negotiate some supplier contracts, and it's saved money and suppliers love it. But will they love it when it becomes an expert, tough, negotiator?
Key takeaways
- Never mind using Artificial Intelligence (AI) to write books or create content - Walmart is finding it helpful for landing a good bargain.
- The retailer tells Bloomberg that it's using a chatbot from Pactum AI to automatically negotiate some supplier deals.
- Walmart first piloted the tool in Canada, but has since expanded its use to the US, Chile and South Africa.
Cite or link to this article
Griffin, M. (2023) 'Walmart’s suppliers would rather negotiate with AI than a human', 311 Institute, 28 December. Available at: https://www.311institute.com/walmarts-suppliers-would-rather-negotiate-with-ai-than-a-human/ (Accessed: 1 October 2026).
Never mind using Artificial Intelligence (AI) to write books or create content - Walmart is finding it helpful for landing a good bargain. The retailer tells Bloomberg that it's using a chatbot from Pactum AI to automatically negotiate some supplier deals. The technology is not only saving an average of three percent on contracts, but preferable to the vendors. Three out of four suppliers prefer haggling with the AI over a human, Walmart says.
Pactum's system just asks Walmart to set its budget and requirements, such as discounts and payment terms. It 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. Walmart first piloted the tool in Canada, but has since expanded its use to the US, Chile and South Africa.
The AI is currently negotiating only for shopping carts and other store essentials, rather than the products you find on the shelves. It's also not completely replacing humans. At present, Pactum's tech is mainly being used for savings in contracts that aren't necessarily worth much time. The bot still has to negotiate with a real person, so completely automated discussions aren't any option in the near future. This is more to lighten the load of busy procurement teams than to avoid hiring.
That might not reassure people worried about their jobs. The reliance on AI comes right as many companies are conducting mass layoffs to endure a rough economy. Chatbots like this can help Walmart and others minimize the effects of job cuts and hiring freezes. Moreover, Walmart has spent years experimenting with robots that could reduce the need for staff. Humans aren't going away any time soon, but the company isn't depending on them as much as in the past and that’s going to create its own new worries and opportunities.
FAQ
Why does this matter?
Walmart has been using AI to negotiate some supplier contracts, and it's saved money and suppliers love it. But will they love it when it becomes an expert, tough, negotiator?
About the author
Matthew Griffin Founder, 311 Institute
Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath."
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Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath." 15-time best selling author of the "Codex of the Future" series, Matthew is the Founder and Futurist in Chief of the 311 Institute, a global Futures and Deep Futures advisory firm working with royal households, world leaders, G7, G20, and G77 governments, NGOs, and multi-national mid and mega cap firms to help them explore, shape, and lead the next 50 years of business and society.
An award-winning YouTube creator with over a million followers, with an unrivalled global reach and impact, Matthew is a highly sought-after international keynote speaker, lecturer, and mentor who collaborates with global leaders through the United Nations Alliance of Civilizations (UNAOC) and United Nations General Assembly (UNGA) to shape pivotal initiatives such as the UN’s AI for Humanity program, the United Nations Conference of the Parties (UN COP), and the World Economic Forum in Davos.
As the former Global Head of Cloud, National Security, and Enterprise Sales for companies including Atos, Dell-EMC, and IBM, Matthew has a proven track record of building multi-billion dollar business units and turning failing divisions into market leaders. His ability to identify, analyse, and communicate the implications of hundreds of emerging technologies and trends is unparalleled, and his insights are trusted by many of the world’s most respected organisations, including ABB, Accenture, Adidas, AON, ARM, BCG, Centrica, Citi, Coca-Cola, Dentons, Deloitte, Dow Jones, EY, Google, KPMG, Lego, Legal & General, LinkedIn, Microsoft, PepsiCo, Qualcomm, RWE, Samsung, Siemens AG and Siemens Energy, T-Mobile, UBS, VISA, Walmart, Workday, Worldpay and many others.
Regularly featured in the global media including the AP, BBC, Bloomberg, CNBC, Discovery, Forbes, Khaleej Times, Telegraph, TIME, ViacomCBS, WIRED, and the WSJ, Matthews mission is to help organisations create a fair and sustainable future whose benefits are shared by everyone irrespective of their ability, background, or circumstances.
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Sources and further reading
Source: first published by the 311 Institute on 28 December 2023. Cite as: Griffin, M. (2023). Walmart’s suppliers would rather negotiate with AI than a human. 311 Institute. https://www.311institute.com/walmarts-suppliers-would-rather-negotiate-with-ai-than-a-human/
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