Game Over: Facing the AI Negotiator

13 Pages Posted: 23 Sep 2024

See all articles by Horst Eidenmueller

Horst Eidenmueller

University of Oxford - Faculty of Law; European Corporate Governance Institute (ECGI)

Date Written: July 03, 2024

Abstract

AI applications will put an end to negotiation processes as we know them. The typical back-and-forth communication and haggling in a state of information insecurity could soon be a thing of the past. AI applications will increase the information level of the parties and drastically reduce transaction costs. A quick and predictable agreement in the middle of a visible bargaining range could become the new normal. But sophisticated negotiators will shift this bargaining range to their advantage. They will automate negotiation moves and execute value-claiming strategies with precision, exploiting remaining information asymmetries to their advantage. Negotiations will no longer be open-ended communication processes. They will become machine-driven chess end games. Large businesses will have the upper hand in these end games.

Keywords: Negotiations, Negotiation Dynamics, Artificial Intelligence, Algorithms, Algorithmic Negotiator, Information, Information Asymmetries, BigTech

JEL Classification: K12, K2, K41, M1, M2

Suggested Citation

Eidenmueller, Horst G. M., Game Over: Facing the AI Negotiator (July 03, 2024). Available at SSRN: https://ssrn.com/abstract=4953698 or http://dx.doi.org/10.2139/ssrn.4953698

Horst G. M. Eidenmueller (Contact Author)

University of Oxford - Faculty of Law ( email )

St Cross Building
St Cross Road
Oxford, OX1 3UL
United Kingdom

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
142
Abstract Views
408
Rank
402,794
PlumX Metrics