Problem Statement
The AI advancements are driven by the need for greater speed, scalability, and strategic agility due to increasingly complex supply chains and disruptions caused by external factors. However, adopting AI isn’t straightforward. Data quality, regulations, and matching the right tools to the right situation, are key challenges. Our research includes studies of major companies at the forefront of applying AI in procurement and negotiation in a variety of industries, including retailing, pharmaceuticals, consumer packaged goods, logistics, and IT.
Research Question
To what extent have AI-driven negotiations had an effect on buyer-supplier relationships? How is the effect of AI-driven negotiations in BSR relationships (focal company and its suppliers) in freight procurement?
Research Methodology
The research approach applies experimental design and causal inference statistics. The analysis relies on a large dataset, in the context of freight procurement, of over 280,000 executed human versus AI negotiations.
Key Results
This research confirms how autonomous systems are redefining buyer-supplier relationships as:
- AI improves cost-effectiveness by 59% in freight procurement compared to humans.
- AI improves time efficiency by 17% in freight procurement compared to humans.
- Equipment properties (size and type), customer status, supplier usability, and AI-supplier success rate have shown significant moderation effects.
References