The Risk and Benefits of Applying Artificial Intelligence in Business Discussions

Abstract

Artificial intelligence (AI) is the development and implementation of algorithms to create a dynamic computing environment replicating human intelligence's fundamental processes. To make a computer think and act like a human requires three essential components: a computing system, data and data management, and powerful artificial intelligence algorithms [1]. With the development of AI technology, more and more companies are turning to AI, for example, to assist them in negotiations. Artificial intelligence is a powerful tool for the mathematical analysis of negotiation situations [2]. Negotiation is a process of social interaction and communication about the distribution and redistribution of power. Traditionally, negotiation assistance has been based on normative and prescriptive research, with analysts and experts as users. Electronic negotiation systems provide services to negotiators, addressing their needs rather than guiding their operations to comply with logic and optimization, as is common in software engineering [3]. Therefore, it was found that artificial intelligence is, to some extent, helpful in negotiation. This study will use some examples, like Pactum, to examine the advantages and disadvantages of AI in business negotiations, and in the end, it will suggest some solutions for the negative impacts.