Walmart to use AI to negotiate with Suppliers

Walmart to use AI to negotiate with Suppliers | CIO women Magazine

According to reports, Walmart has apparently started utilizing artificial intelligence to speed up traditionally lengthy cost and purchase terms negotiations with some partners.

Negotiations with Small Contracts

According to Bloomberg, Walmart is negotiating smaller contracts with suppliers who give the retail behemoth the equipment it needs rather than the goods it sells using a chatbot created by the California-based startup Pactum. According to the study, the chatbot has been able to conclude agreements in days as opposed to weeks. Additionally, it was shown that about 75% of suppliers preferred to negotiate with the chatbot as opposed to a human.

Earlier this year, Pactum said that their technology had enabled Walmart to negotiate contracts with 2,000 suppliers at once—“something no human buyer can do”—and that this had resulted in an average 3% cost reduction for the business.

Walmart has been contacted by FOX Business to learn more about their ambitions to use automation in negotiations. By the end of 2026, Walmart’s supply chain will be automated to service approximately two-thirds of its shops, the enormous retailer announced earlier this month.

Automation in Plans

“Through its extensive work, Walmart is reengineering its supply chain to fulfill customer needs with a more intelligent and connected omnichannel network that is enabled by greater use of data, more intelligent software, and automation,” the company stated in a release. “Whether customers shop in-store, pick up their order, or have it delivered, the outcome improves in-stock inventory accuracy and flow.”

By the end of the fiscal year 2026, approximately 65% of Walmart shops will be serviced by automation, approximately 55% of fulfillment center businesses will pass through automated facilities, and average expenses per unit might decrease by nearly 20%, according to the company. According to a Goldman Sachs analysis, the extent to which AI is adopted and how sophisticated AI technologies grow will determine how it ultimately affects the economy through higher productivity, the displacement of labor, and the re-employment of displaced labor.

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