Artificial intelligence must be brought to the HR negotiating table

Will we soon be negotiating with machines? It’s possible. Artificial intelligence already analyses body language, recognises emotions in fractions of a second and calculates the most convincing conversation strategies in real time.

AI is successfully used in training courses to recognise and analyse non-verbal signals such as micro-expressions and stress patterns. Pure AI negotiation systems are now competing against each other in science – with the more emotional, empathetic systems coming out on top. Why not let AI do the job?

Rethinking negotiations: What does AI really change?

What seems like Orwell’s not-so-brave new world to some is fascinating to others. The fact is that AI is unavoidable when considering efficiency and time savings as a relief in routine negotiations, for example. If you negotiate prices, discounts and terms with Walmart in the US today, AI is sitting at the table with you. The software checks offers in a matter of seconds and calculates alternatives: payment terms, delivery times, raw material prices, transport costs, discounts, advertising subsidies. Whereas entire departments used to spend weeks poring over columns of figures, an algorithm now takes care of the routine business. This is a liberating development for negotiators, who can now concentrate on the difficult tactical issues.

Fast, clean logging, data quality and transparency – another unbeatable strength of AI. Estonian start-up Pactum AI has developed a platform that automatically adjusts thousands of supplier contracts. Suppliers who respond to emails or fill out online forms often don’t even realise they are dealing with a machine. A machine that never gets tired, never seems irritated and never thinks of taking a spontaneous break.

AI can screen CVs in recruitment processes and compare them with requirement profiles. It can minimise human bias in the initial selection process, thereby ensuring equal treatment. Automated salary agents define possible offers within certain ranges.

Contracts can be negotiated identically instead of being redrafted each time. Law firms such as A&O Shearman use their ContractMatrix platform to reduce the negotiation time per contract by several hours. The start-up HyperStart CLM combines automated redlining, risk reports and AI-supported decision-making support – and advertises time savings of up to 75 per cent in contract negotiations. Its customer list ranges from insurers to software companies. This list could go on and on. Welcome to the new negotiating table!

AI as a coach

While bots act as independent negotiators in pilot projects, there are also successful approaches to using artificial intelligence as a discreet coach. One such approach is being trained in practice at the Centre for Negotiation at Quadriga University Berlin using various AI tools to support negotiators. The systems play to their strengths in the background – as invisible companions.

For example, AI can whisper tips in real time during ongoing negotiations: alternative wording, ideas for compromises, advice on tone of voice. Those who accepted the advice during training performed measurably better. Samuel Dinnar, a lecturer at MIT, even sees this as an opportunity for people who have previously avoided negotiations out of fear: ‘AI can build bridges, especially for people who shy away from negotiations. It provides security, offers training opportunities and opens up negotiation skills to broader groups.’

Platforms such as Gong go even further, recording sales and negotiation talks and breaking them down into data points: Who spoke for how long? What terms were used? When did the tone of voice fluctuate? The result is a coaching tool that shows where negotiators are too dominant or where a pause would have had more effect. AI-supported coaching and simulations can therefore improve tactics and the quality of negotiations.

Balance between humans and machines

AI has long been more than just a theoretical experiment. It is fundamentally changing the way we negotiate – from preparation to real-time support at the table. But as promising as the technology is, it also raises new questions: What happens when both sides rely too heavily on algorithms? Will cultural nuances be levelled out when AI standardises communication patterns? And how can companies prevent a wrong prompt or hidden bias from ultimately overturning a million-pound deal?

The answer lies in balance. AI can sift through mountains of data, recognise patterns and run through scenarios. But creativity, moral judgement and the ability to build trust remain deeply human. And perhaps that is the real revolution: not the replacement of the negotiator by AI, but the expansion of their capabilities. The art will be in using technology as a tool – without losing sight of the human aspect.