Wal-Mart uses AI chat robots to bargain with suppliers, saving 3% more on average.

CTOnews.com, April 30, what else will chatbots do besides writing poems and code? Wal-Mart, the largest retailer in the United States, is using AI to bargain with suppliers, Bloomberg reported.

The chatbot, called "Pactum AI", can automatically bargain with suppliers, saving Wal-Mart an average of 3 per cent more, but three out of four suppliers prefer to bargain with AI rather than communicate with humans, the report said.

As long as Wal-Mart tells Pactum AI the specifications, budget and payment terms of the products he wants to buy, Pactum AI can automatically compare the supplier's demand, price trends, and other competitive prices, and then use this information to negotiate prices with suppliers.

Generally speaking, AI can reduce negotiation time from weeks or even months to days and increase the satisfaction of both sides with the final price, Bloomberg said.

Wal-Mart first tried Pactum in Canada and later extended it to the United States, Chile and South Africa. However, the Pactum AI is currently only used by Wal-Mart to buy its own items, such as store carts or office consumables, and the goods sold on the shelves are still negotiated by humans.