How AI Is Reshaping Supplier Negotiations

AI is revolutionizing supplier negotiations, driven by the need for speed, scalability, and strategic agility in complex supply chains. Initially used for automating low-value tasks, AI can now play a crucial role in a growing number of key procurement decisions. The transition to adopting AI for supplier negotiations should be step by step: from the assisted stage, where AI tools act as copilots but do not replace human decision-making; to semi-autonomous systems, where the systems can accept pre-approved clauses or adjust prices in contracts within set limits, but critical decisions remain under human control; to the fully autonomous stage, where the systems handle negotiations end to end—within guardrails.