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Analysis Of The Influence Of Artificial Intelligence On Enterprise Contract Negotiation And Negotiation
- Jan 30, 2019 -

With the advancement and development of technology, enterprises will use artificial intelligence technology to help negotiate and negotiate contracts, which will be a way to change the contract and agreement of enterprises.

Companies sign many contracts each year, including facility leasing, technology licensing, product sales, staff recruitment, and strategic partnerships.One of the biggest challenges companies face in negotiating and negotiating contracts is to cover a wide range of topics.Even knowledgeable and experienced negotiators may encounter difficulties in analyzing contracts that go beyond their scope of knowledge and authority.Needless to say, technical terms in certain contracts may confuse negotiators with misunderstandings or neglect related information.Due to the number and diversity of contracts, many companies have suffered heavy losses due to breach of contract terms. However, the development of artificial intelligence has proven to be a boon for these negotiators because it provides a faster and more efficient way to guide contract negotiations.

Information extraction, storage and analysis

A company's contract contains a lot of hard data, including dates, timelines, prices, returns, and so on.Instead of having the staff analyze the content and terms one by one, companies can use artificial intelligence systems to extract information.In addition, machine learning systems can detect and interpret patterns in data by associating different pieces of data, and workers may need more time to identify these patterns.Artificial intelligence systems can identify specific points of inefficiency or loss of value so that future contracts can be improved.For example, for a retailer with many physical storefronts, the contract management tool can analyze various lease contracts to determine the average price, space efficiency, sales, etc. of the storefront space in order to make recommendations for future negotiation goals.Therefore, artificial intelligence can help negotiators better inform their decisions to evaluate their quotations.Whether the negotiator is in price, time, product, service, idea, quality, or transaction, having the right information and metrics can greatly help negotiators make the best decisions.

Data persistence and transparency

Many people believe that the future development of artificial intelligence is inextricably linked to the blockchain.The blockchain is an indelible digital recording system that can be applied in a variety of ways to make the system more transparent.Smart contracts or contracts embedded in blockchains are one of the most important applications for the development of blockchain platforms.One of the factors that makes the blockchain widely available is to achieve maximum transparency, thus eliminating the need to gain the trust of the other party.The blockchain system requires both parties to take responsibility, whether or not they try to make a quick decision. By using a blockchain to manage contracts, all aspects of the contract are stored in an unalterable, forged or lost manner. In addition, any violation of the terms of the contract may automatically trigger sanctions against the defaulting party.

Value assessment

One of the most important negotiating skills that negotiators can learn is how to calculate the actual economic value of the proposed transaction and its alternatives to assess what will be gained and lost in the transaction.The artificial intelligence system can be programmed to predict value in response to a set of assumptions and past performance data sets, and to calculate these numbers in a more precise manner than the staff.Using machine learning technology, the system can continue to update its models in real time while recording new data.For example, if a company causes losses to the other party due to delivery time issues, which puts more pressure on the company's work tasks and resources, the artificial intelligence system will immediately learn to refuse to accept these terms in future contracts.In this case, there are two main reasons for using artificial intelligence techniques when negotiating contracts: First, it eliminates lengthy processes, and data analysts analyze the data through these processes and try to understand it. In addition, data analysts themselves are usually not negotiators.When the analyst analyzes the data and passes its information to the negotiator, the explanations that may be given are not in place or ignored by the negotiator. If robots based on artificial intelligence are mutually negotiated, they will automatically optimize to the best value that both parties can understand, thus eliminating misunderstandings of the data. Many negotiators believe that this will be the future of business negotiations.

organize information

Artificial intelligence software tools can analyze large amounts of data to predict new information. Therefore, artificial intelligence-based contract management software can identify different types of contracts (such as purchasing and sales) and store this information clearly in the preferred database. These databases can be customized to the specific contractual needs of the business.

Recruitment and human resource management

Contract management and analysis are important not only for external contracts, but also for internal employment contract management and staff recruitment. Human resources and recruitment costs may increase the overhead costs of other operations. The use of artificial intelligence technology to sort through the large job seeker database can accomplish the tasks that human resources staff need to accomplish.If the candidate passes the interview, the artificial intelligence software is important to ensure that the appropriate contract terms are presented for the business.For example, artificial intelligence technology can analyze the lifetime value of all employees in the enterprise, and see that the economic value of providing more vacation time for employees will be higher than rewarding more bonuses. In this case, the human resources representative of the company can emphasize this advantage.This information can enable business managers to benefit from assessing employee value and scalability.

in conclusion

The automation of data analysis and contract negotiations does not eliminate the need for negotiation skills. It simply provides companies with better information and tools to make more informed negotiation options. Negotiators still need a wealth of experience and better safeguard the interests of their companies. However, through artificial intelligence-based contract negotiation software, negotiators can be more confident that they can get the most important information and the best analysis.