Boosting Salary Negotiations with AI: How Pactum AI is Using Chatbots to Improve the Process

Boosting Salary Negotiations with Artificial Intelligence

The Role of AI in Salary Negotiations

Salary negotiations are essential for many employees, as they are emotionally charged and psychologically complex, but they may soon get a boost from artificial intelligence.

Since 2021, Pactum AI, a major global procurement negotiation company, has been using an AI chatbot to negotiate the salaries of its employees.

Ironclad, a startup backed by Sequoia and Accel, is preparing to launch an AI agent that specializes in analyzing business contracts.

Individuals use publicly available chatbots to practice negotiations and brainstorm compensation. Salary negotiations are often unsatisfying, nerve-wracking, and time-consuming for employers. As a result, anything that might improve the process is worth a try.

Workplace disruptions in the age of coronavirus have changed many employees’ expectations about work-life balance, and led some employees to focus as much on benefits as on gross pay.

And repeatedly asking for a raise or benefits from someone you may be dealing with for years to come is difficult.

People who don’t normally negotiate salary or those who want better options beyond salary, such as extra time off or other time off, benefit from AI chatbots.

Its salary-negotiation bot, Pactum AI, was inspired by its independent negotiation platform, which companies such as Walmart use to negotiate with vendors.

The Benefits and Challenges

“Feedback from our 80 employees is positive, and this has taught us the importance of negotiating benefits as well as salary, giving employees multiple offers to choose from,” said Martin Rand, CEO of Pactum AI.

Pactum’s AI salary negotiation bot reduces manager biases and provides a better offer to both sides, but it must be constantly calibrated.

Rand foresees a future of continuously adjusted benefits thanks to bots with unlimited negotiation time when employee priorities change, when companies need to cut costs, or when they have resources to provide additional compensation.

Negotiation is human interaction by nature and requires human intelligence, as artificial intelligence helps in this field as long as it is a complement and not a substitute for human input.

According to AI proponents, the technology expands the scope of negotiation in the workplace to reflect the different priorities of employees at different stages of life and with different family responsibilities, but AI may also harm employees in compensation negotiations.

Potential Risks and Concerns

Employees who are not given full context or who provide poor directions to the chatbot may find themselves at an information disadvantage.

Automating contracts for low-value products is simple, but relying on a chatbot for highly skilled or uniquely talented employees risks alienating those desirable new hires.

An ill-trained chatbot may also jeopardize individual privacy and trade secrets. Pactum AI is now seeing difficulties getting its salary negotiation bot to work at scale, and the company plans to continue focusing on automating purchase negotiations.

In today’s workplace, salary negotiations have become emotionally charged and psychologically complex for many employees. However, there is a potential solution on the horizon – artificial intelligence (AI). Companies like Pactum AI and Ironclad are leveraging AI chatbots and agents to revolutionize the way salary negotiations are conducted.

Pactum AI, a major global procurement negotiation company, has been using an AI chatbot to negotiate the salaries of its employees since 2021. This innovative approach reduces manager biases and provides a better offer to both sides. Martin Rand, CEO of Pactum AI, highlights the importance of negotiating benefits alongside salary, giving employees multiple offers to choose from. The feedback from their employees has been positive, encouraging the company to explore additional possibilities for continuously adjusted benefits using AI bots.

The benefits of AI in salary negotiations extend beyond just providing alternative offers. AI expands the scope of negotiation in the workplace, taking into account the different priorities of employees at different stages of life and with varying family responsibilities. People who do not typically negotiate salaries or those seeking options beyond mary compensation, such as extra time off, can benefit from AI chatbots.

However, there are also concerns regarding the use of AI in compensation negotiations. Employees who do not provide sufficient context or guidance to the chatbot may find themselves at a disadvantage. Moreover, relying solely on chatbots for negotiations with highly skilled or uniquely talented employees may alienate potential hires. Additionally, privacy and trade secrets can be compromised if the chatbot is not properly trained.

Despite the potential challenges, AI has the potential to greatly improve salary negotiations. It is crucial to recognize that negotiation is fundamentally a human interaction that requires human intelligence. AI should be used as a complement, enhancing the process rather than replacing human input.

As companies continue to navigate the complexities of salary negotiations, AI could be a valuable tool. However, it is essential to strike a balance between harnessing the capabilities of AI and ensuring human involvement to create a fair and successful negotiation process.

The post Boosting Salary Negotiations with AI: How Pactum AI is Using Chatbots to Improve the Process appeared first on asumetech.

from Technology - asumetech https://asumetech.com/boosting-salary-negotiations-with-ai-how-pactum-ai-is-using-chatbots-to-improve-the-process/