Walmart Accelerates Contract Negotiations with AI Chatbot

Walmart Accelerates Contract Negotiations with AI Chatbot

Walmart has started using an AI chatbot to negotiate costs and purchase terms with certain suppliers, streamlining the process and saving the company money. The chatbot, developed by Pactum, has been able to close deals in days instead of weeks and is preferred by 75% of suppliers. Walmart plans to increase automation throughout its supply chain, with a focus on an intelligent, connected omnichannel network.

Key takeaways:
  • Walmart uses Pactum's AI chatbot to negotiate smaller contracts with equipment suppliers.
  • Deals close in days instead of weeks, with 75% of suppliers preferring the chatbot over human negotiators.
  • Pactum's technology has helped Walmart save an average of 3% by negotiating with 2,000 suppliers simultaneously.
  • By the end of 2026, Walmart aims to have 65% of its stores serviced by automation, with 55% of fulfillment center volume moving through automated facilities, potentially improving costs per unit by 20%.
  • A Goldman Sachs report suggests that generative AI tools could expose two-thirds of U.S. jobs to some level of automation, impacting the economy through increased productivity, labor displacement, and re-employment of displaced labor.
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