Source: Brave New Procurement Deals: An Experimental Study of How Generative Artificial Intelligence Reshapes Buyer–Supplier Negotiations (2025)
https://www.sciencedirect.com/science/article/pii/S1478409225000214
Artificial intelligence is no longer just a support tool in procurement—it is stepping into the negotiation room. A recent study explores what happens when a generative AI chatbot takes the role of a buyer in negotiations with suppliers. The results provide valuable insight into how AI might shape the future of procurement interactions.
Content…
What Did the Study Investigate?
The research focused on three key questions:
- Can AI negotiate effectively with suppliers?
- How does AI influence pricing outcomes and negotiation relationships?
- Does negotiation style (competitive vs. cooperative) matter when AI is involved?
How the Study Was Conducted
Researchers carried out three controlled negotiation experiments. In each case, human participants played the role of suppliers, while a chatbot based on generative AI acted as the buyer. The chatbot was programmed with two distinct negotiation styles:
| Style | Characteristics |
|---|---|
| Competitive | Assertive, firm demands, focused on maximizing value |
| Cooperative | Problem-solving tone, interest in long-term collaboration |
The experiments also tested whether the type of product being negotiated—non-critical or bottleneck—changed negotiation outcomes.
Key Findings about AI in Supplier negotiations.
1. AI Can Drive Strong Commercial Outcomes
When the chatbot used a competitive style, it achieved better economic results:
- Larger price reductions
- More favorable terms
- Faster deal agreements
2. Relationship Matters Too
Suppliers reacted differently depending on AI behavior:
- A cooperative AI built more trust with suppliers.
- Suppliers felt more satisfied with the process when the AI was cooperative.
- There was a higher willingness to continue the relationship when AI adopted a collaborative tone.
3. AI Influences Human Behavior
The study also found a mirroring effect:
- When the AI negotiated competitively, suppliers matched that tone, responding more aggressively.
- This suggests AI behavior can shape communication style in negotiations.
4. Product Type Did Not Change the Outcome
Whether the negotiation involved a non-critical item or a bottleneck product, the AI’s negotiation performance and its impact on suppliers remained consistent.
Limitations of the Study
The authors point out several constraints:
- Simulated negotiations—not real-world deals
- Two experiments used students instead of professional buyers
- Only basic AI models and two negotiation styles were tested
- Results based on text-based chat, not voice or video
Reflection from Learn How to Source
This study is a timely reminder that AI is entering the negotiation arena not as a novelty, but as a tool that can reshape the dynamics between buyers and suppliers. For procurement teams, the question is no longer if AI belongs in negotiation workflows, but how we apply it responsibly and effectively.
Three reflections stand out:
- Keep procurement human-led, even when AI scales the work.
Competitive AI agents can deliver strong commercial outcomes, yet trust, fairness, and long-term value still rest on human judgement. Your role is to set intent, choose the style, and decide when to pause, reframe, or escalate. - Be intentional about negotiation style.
The research shows style matters. Buyers need range: the ability to press for value and to preserve relationships. That range comes from preparation, clarity on interests, and a deliberate plan for tone and concessions. - Treat AI fluency as part of core competence.
Knowing how to brief, constrain, and evaluate AI support is now a basic capability. It’s not about replacing the buyer; it’s about augmenting analysis, scenario planning, and message crafting—without losing ethical guardrails.
How Buyers in Training Can Act on This Study
1) Practice AI-supported negotiation (low-risk reps).
Run safe simulations: draft negotiation scripts with AI, test alternative tones and concessions, and review outcomes with a mentor.
Start here: AI & Negotiation in Step 6 and the E-sourcing with AI case.
AI & negotiation in step 6 • E-sourcing case
2) Build a dual-style toolkit (competitive + collaborative).
Train both sides of your range. Use structured methods to keep discussions interest-based, and add practical price-pressure plays for when markets allow.
See: Getting to Yes and Carve-Back Negotiation.
Getting to Yes – course • Carve-Back – course
3) Strengthen supplier relationship skills.
Even with AI in the loop, your credibility and relationship management drive long-term value.
See: SRM 10-minute intro and SRM: two cases.
SRM intro • SRM cases
4) Level up supplier intelligence.
Use modern tools to monitor performance, risk, and market signals so your negotiation inputs are current and defensible.
See: Supplier Intelligence Tools.
Supplier intelligence tools