Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Business AI negotiators

Walmart has been successfully using an AI tool to handle some of its vendor negotiations, saving employees time and the company money. (Photo by Joe Raedle/Getty Images)

By Hannah Bryan Leaders Staff

Hannah Bryan

News Writer

Hannah Bryan is a news writer for Leaders Media. Most recently she was a reporter for the Sanilac County News...

Full bio


Learn about our editorial policy

Apr 26, 2023

Let A.I. Do the Talking

As companies look for potential uses for artificial intelligence (AI), Walmart has found one possible new use—handling supplier negotiations.

Key Details

  • Walmart is using an AI chatbot developed by California company Patcum AI to negotiate vendor contracts. 
  • Executives at Walmart give the chatbot information such as budget and priority needs, and the AI deals with human sellers to find an agreement, Bloomberg reports. 
  • So far, the retailer is only using the software to negotiate prices on equipment such as shopping cars, but the company says the AI has significantly reduced negotiating time. 
  • Not only is the system faster, but it has successfully secured deals with 68% of suppliers and saved the company around 3% on its contracts since Walmart started using the program in 2021.

Why it’s news

Even if companies only use AI to handle some negotiations, the software still represents a significant time saver. Negotiations between vendors typically require an entire team of people, but with AI, those employees can focus on more urgent or nuanced negotiations.

Walmart was one of Patcum’s first customers and is one of the few retailers to adopt AI negotiations. Amazon uses AI to negotiate certain vendor discussions, and one of Walmart’s biggest rivals, Target, does not use AI software for negotiations at all.

Walmart has not shied away from adopting AI technology. In 2018, the company announced a partnership with Microsoft to develop AI and other technologies. In December, Walmart announced that its website would use an OpenAI chatbot to have conversational messages in its text-to-shop tool. Over 50 million customers now use the chatbot to check the status of orders or returns, Bloomberg reports. 

For now, Walmart still relies on human negotiators to handle the minute details of vendor relations. Patcum’s systems can help the company save money on contracts that would otherwise be considered too small to take up much of a procurement manager’s time. 

The AI can discuss discounts, payment terms, and individual product prices. It can analyze historical data, competitor prices, and commodity price changes to determine if an offer is fair. Human negotiators can adjust prices as needed.

So far, the bot is not intended to replace human negotiators, but Patcum is working on that. The company is working on bot-to-bot negotiations, where both the retailer and vendor use AI to negotiate. However, that technology still has a ways to go.

Home / News / Let A.I. Do the Talking
Share
FacebookTweetEmailLinkedIn

Related Stories

Seattle Takes The Crown For Advanced Tech Talent

by PJ Howland Leaders Staff
Tech

Oct 24, 2023

Seattle tech talent

Seattle has emerged as the metro area with the most advanced tech talent, beating out tech hubs like San Francisco and Silicon Valley.

Key Details

  • According to a new ranking by the Burning Glass Institute, Seattle has the highest proportion of advanced tech workers compared to other cities with similarly sized tech workforces.
  • The ranking evaluated 60 million high-paying, in-demand tech job postings and histories to identify cities with cutting-edge roles like AI and cybersecurity rather than legacy tech positions.
  • With tech giants Amazon and Microsoft headquartered in Seattle, the city edged out the San Francisco Bay Area, Boston, Austin, and Raleigh on the list.
  • The report found that demand for software developers and IT support specialists has declined over the past five years as companies seek more specialized tech talent.

Go deeper

FacebookTweetEmailLinkedIn

More Americans Can’t Keep Up With Car Payments

by Colin Baker Leaders Staff
Loans and Borrowing

Oct 23, 2023

car loans, used cars

A record number of Americans are behind on their car loan payments as higher interest rates and prices weigh on consumers.

Key Details

  • According to data from Fitch Ratings, 6.11% of car loans were at least 60 days delinquent in September, the highest since tracking began in the early 2000s.
  • Some interest rates on used cars can rise to as much as 21%, according to Bankrate.
  • Soaring prices and rising interest rates are squeezing consumers, making it difficult for some to keep up with their auto loans.

Go deeper

FacebookTweetEmailLinkedIn

Chevron Makes $53 Billion Deal Amid Surging Gas Prices

by PJ Howland Leaders Staff
Markets

Oct 23, 2023

Chevron Gas Deal

Chevron is acquiring Hess Corp. for $53 billion, the second significant oil producer acquisition this month as crude prices climb.

Key Details

  • Chevron is purchasing Hess in an all-cash deal worth $53 billion, including debt and preferred stock redemption.
  • This comes just weeks after ExxonMobil announced its $59.5 billion purchase of Pioneer Natural Resources.
  • With oil over $80 per barrel, major producers are using their windfall profits to acquire smaller players and boost payouts to shareholders.
  • Chevron expects the deal to close in H1 2023 pending regulatory approvals and Hess shareholder vote.
  • Hess CEO John Hess will join Chevron's board once the acquisition is complete.

Go deeper

FacebookTweetEmailLinkedIn
nike logo
Company Culture

Oct 20, 2023

Nike to Require More In-Office Days From Employees

by Colin Baker Leaders Staff
blue collar workers
Retirement

Oct 20, 2023

Explaining The ‘C+ Grade’ Retirement Ecosystem in The United States

by PJ Howland Leaders Staff
netflix building
Entertainment

Oct 19, 2023

Netflix Hiking Prices While Adding Millions of Subscribers

by Colin Baker Leaders Staff

Recent Articles

Hiring

Nov 1, 2023

Learn the Winning Answers to the Most Common Phone Interview Questions

Come to your next phone interview fully prepared

Personal Growth

Oct 30, 2023

85 Quotes on Self-Love to Boost Your Self-Esteem

Don’t fall into the trap of harsh self-criticism

Company Culture

Oct 27, 2023

What is a Sabbatical? Your Ticket to Restful Growth and Meaning

Sabbaticals can benefits both employees and businesses

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2025 Leaders.com - All rights reserved.

Search Leaders.com