Artificial intelligence as a means to facilitate mechanism design-based negotiations

Various technology trends trigger the transformation of the procurement function, which could proactively position itself as an initiator by integrating new technologies and, thereby, gain a critical standing. Companies could exploit new technology trends such as artificial intelligence to gain a competitive advantage. Furthermore, the procurement function needs to find new ways to generate savings to cope with future markets. Advanced negotiation methods provide the possibility to increase savings in a competitive environment. Thereby, mechanism design-based negotiations is a negotiation method that could differentiate negotiations by aligning incentives to achieve the best negotiation outcome. Companies could exploit new technologies to enhance the application of new negotiation methods. Artificial intelligence shows thereby the potential of automating mechanism design-based negotiations.