AI in negotiations
: the perspective of procurement managers

  • Jordin Aaron Schurer (Student)

Student thesis: Master's Thesis

Abstract

This study explores the adoption and impact of artificial intelligence (AI) in negotiations through qualitative interviews with 22 procurement managers and negotiation experts. Using the Technology Acceptance Model, the research investigates AI adoption, perception, and influencing factors in negotiation processes. Findings reveal early-stage AI adoption with growing interest. AI is perceived as beneficial for efficiency, data analysis, and communication, particularly in more straightforward standardized negotiations. Key adoption factors include negotiation frequency and complexity, data quality, security concerns, and the perceived value of human skills. Despite its advantages, professionals express concerns about AI's limitations in creativity, interpreting subtle signals, and potential impact on supplier relationships. There is a preference for using AI as a support tool rather than for full automation. The study recommends gradual AI implementation through low-risk pilot projects. It highlights the need for professionals to communicate the use of AI transparently to suppliers and evaluate AI tools thoroughly prior adoption. Further research is needed on integrating AI with human skills, evaluating AI effectiveness across negotiation phases, and exploring ethical implications, especially regarding supplier relationships.
Date of Award17 Oct 2024
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorFilipa Andrêa Godinho de Lancastre Serpa Pinto (Supervisor)

Keywords

  • Artificial intelligence (AI)
  • Negotiation
  • Technology acceptance model (TAM)
  • AI adoption
  • Negotiation automation

Designation

  • Mestrado em Gestão e Administração de Empresas

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