“To maximize your money, you must become smarter about how you use it, and the usage of your time.” -Greg Williams, The Master Negotiator & Body Language Expert (Click to Tweet)
“Save Money And Time
How To Use AI Personalization Negotiation”
People don’t realize they’re always negotiating.
Everyone wants to do it – save money and time, especially during negotiations. And a myriad of ways has been investigated and created to do that. Some master negotiators have begun using AI (artificial Intelligence) Personalization Negotiation to accomplish that goal.
If you would like to save money and time in your negotiations, continue. You will gain insight into AI Personalization and how it can improve your negotiation position and efforts.
AI Personalization Definition
Question: What exactly is AI Personalization? Answer: First, AI Personalization is the process of assembling data from a substantial size sample to analyze actions performed by selected subjects. Then, once completed, AI Personalization can use its findings to identify and predict how respondents may act in particular situations. And thus, in a negotiation, AI Personalization will give you data to personalize the tactics you use against your negotiation opponent.
AI Personalization In Business Negotiations
AI can assist your negotiation efforts while saving time and money spent in business. It can also prevent you from making too many concessions.
Many companies use AI personalization as part of their digital marketing, content marketing, and e-commerce strategies to make stronger customer connections. Thus, incorporating AI personalization into your negotiation strategy will help you connect better with those you do business with and establish more mutually beneficial agreements.
Three Ways AI Personalization Enhances Negotiations
1. Negotiate Thousands Of Contracts Simultaneously
Companies that regularly negotiate or renegotiate hundreds to thousands of supplier contracts can use AI to negotiate them simultaneously and in minutes. They can also personalize the terms based on data that is unique to each supplier.
This new process has led to increased efficiency for corporations with more significant footprints. But what does that mean if you are a smaller entity with whom they are negotiating?
Negotiation opponents often limit the information they share to reduce the risk of manipulation. There are instances where corporations can uncover information about the suppliers’ terms to which they will agree. With limited information about the opponent’s preferences, machine learning models can combine that data with data from prior negotiations and predict the opponent’s probability of accepting future terms.
The machine can then make personalized offers with a high likelihood of reaching an agreement, resulting in a faster close rate. The AI agent can even complete the entire negotiation process, including signing the contract without human intervention.
2. Learn About Your Negotiation Opponent
AI can analyze a negotiator’s sentiments to determine how genuine they are when making offers. Computer vision can also analyze the opponent’s facial expressions ( AI Facial Expression – How To Use It To Improve Negotiations ) and body language and combine those data points with other data in machine learning models. These models can predict a person’s trustworthiness, whether they will accept or reject an offer, and predict personality types, such as hard, soft, or go-along-to-get-along negotiators.
While the system can decipher tones denoting anger or happiness, it cannot put them into context. Accordingly, someone’s tonality could become altered due to an occurrence unrelated to the negotiation. And much like humans negotiating via telephone, the system cannot detect it.
For this reason, a good rule of thumb is not to negotiate based on one singular factor. It would be best to always observe a cluster of similar occurrences before assigning a value to a negotiator’s intent. And with AI combining multiple data points to yield insights into the person you’re negotiating with, you can adapt your concessions and use personalized strategies to gain better agreements.
3. Simulate Opponent’s Behavior
Algorithmic models exist that can simulate your opponent’s behavior in a negotiation. The opponent model can determine the reservation value, which is the least favorable point a negotiator will accept an agreement.
Meaning, the reservation value is the maximum a negotiator will pay if she is the buyer or the minimum price she will agree to receive if she is the seller. Once the model reveals this, you can adapt your strategy. The model can also predict the deadline of your opponent, which means you can employ tactics to achieve concessions.
Without a doubt, AI Personalization Negotiation enhances the negotiation process. It can save you money and time. But at what cost, if you are on the wrong side of the equation?
With the insights presented, you can better prepare and deal with larger entities if you are a smaller business. And if you are an enterprise organization, you can increase the corporation’s negotiation efforts by delving into the new frontier using AI Personalization Negotiation.
Regardless of the business’ size, to avoid being left behind, I suggest you enhance your knowledge about this cutting-edge technology to improve your future negotiations. And everything will be right with the world.
Remember, you’re always negotiating!
Contributing Author, Yolanda Royster https://aibusinesspartners.com/
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