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Walmart's AI Chatbot: Revolutionizing Supplier Negotiations and Saving Time and Money

Walmart has discovered a new way to strike better deals with suppliers, thanks to a cutting-edge AI chatbot from Pactum AI. Not only is this technology saving an average of three percent on contracts, but it's also a hit among suppliers. In fact, three out of four suppliers prefer negotiating with the AI over a human counterpart.

The Pactum AI chatbot simplifies the negotiation process by asking Walmart to set its budget and requirements, such as discounts and payment terms. It then compares the supplier's demands with market trends, commodity values, and competitors' costs, enabling the AI to strike a deal within days instead of the weeks or months typically associated with traditional negotiations. Initially piloted in Canada, Walmart has since expanded the chatbot's use to the US, Chile, and South Africa.

Although the AI chatbot is currently limited to negotiating for shopping carts and other store essentials, it's not entirely replacing human involvement. Pactum's tech primarily focuses on contracts that don't warrant extensive time investment, and the bot still needs to negotiate with a real person. The goal is to alleviate the workload of busy procurement teams, rather than replace human workers altogether.

Despite these assurances, concerns about job security persist. As companies increasingly rely on AI and conduct mass layoffs to cope with economic challenges, chatbots like Pactum's can help Walmart and other businesses minimize the impact of job cuts and hiring freezes. Walmart has a history of experimenting with robots that could potentially reduce staffing needs. While humans remain an integral part of the workforce, the company's dependence on them is gradually decreasing as AI continues to make its mark in the world of supplier negotiations.