The AI Bargain: Walmart Using AI to Negotiate Prices with Suppliers
It seems like the retail industry might be ready to embrace the power of artificial intelligence (AI). Walmart, one of the biggest names in retail, is reportedly using AI to bargain with suppliers to get the best prices on some of its necessities – and it’s working.
According to a report from Bloomberg, Walmart has been using a chatbot developed by California-based Pactum Inc., a company that specializes in autonomous negotiation software. Walmart can tell the software what products it needs and its budget, and then the AI will communicate with human sellers to get Walmart the best deal.
Similar to the viral AI chatbot from OpenAI called ChatGPT, Walmart’s experience with AI is going swimmingly. Since the program began in 2021, Walmart has reached deals using AI with 68% of its suppliers, saving an average of 3% on the contracts it has negotiated via Pactum’s AI. For a billion-dollar company, that can amount to huge savings.
The AI revolution poses many questions about how AI will intersect with the economy and workforce. A Stanford University and Massachusetts Institute of Technology study found that 14% of employees who used ChatGPT in their workflow saw an increase in productivity, with the least experienced and least skilled workers completing tasks 35% faster.
While OpenAI CEO Sam Altman revealed earlier this month that the company is not releasing ChatGPT-5 anytime soon, it’s clear that AI is making an impact in the retail world. In fact, three out of four suppliers have told Walmart that they prefer to negotiate with an AI instead of a human, according to Bloomberg.
However, Walmart is reportedly only using the AI to negotiate with suppliers that supply the company with essentials like shopping carts and has not yet begun using it to negotiate prices on in-store goods.
If you want to learn more about AI, chatbots, and the future of machine learning, check out GPT News Room’s full coverage of artificial intelligence, or browse their guides to The Best Free AI Art Generators, The Best ChatGPT Alternatives, and Everything We Know About OpenAI’s ChatGPT.
Editor Notes:
AI is revolutionizing every industry, and the retail sector is feeling the impact. Walmart’s use of AI to negotiate prices with suppliers is just the beginning of what we can achieve with this powerful technology. As more companies begin to integrate AI into their workflow, the possibilities are endless. At GPT News Room, we are dedicated to keeping you up-to-date on the latest advancements in AI and machine learning. For more news and insights into this exciting field, visit gptnewsroom.com.
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