Contract Price Negotiation Using an AI-Based Chatbot

Abstract

The contract management process is a tedious and often manually performed task in the procurement process in the industry. It includes requesting bids, negotiating, drafting the contract, etc. Within this purview, there is ample opportunity for smart automation. In this paper, we present a general framework for a negotiating bot that can bargain with the vendor for an agreement on the price in the contract negotiation process. Based on the data provided by the vendor, the bot determines a fair price as per market standards, using which the user (procurement staff) can further negotiate for a better deal as per the systematic steps described by the decision bot. This method can benefit the companies by saving a significant amount of time and money for the organization and reducing human dependency on such routine tasks.