Martin RandCEO and co-founder of an AI-powered autonomous trading solution, Pactwas the special guest of the last Supply Chain Digital Expo. The following is an edited version of the interview that took place on the show.
Tell us about Pactum and yourself
Pactum was founded in 2019, and it is an AI solution that conducts autonomous negotiations for global companies. I used to be a sales manager for a climate company and my job there was to negotiate. During these negotiations, I saw all the cognitive biases and cultural differences involved in human negotiation interactions and the amount of value that was left on the table.
That’s how I co-founded Pactum – to solve the fundamental problems of trading with AI, while being able to scale across an entire business.
Negotiations are fluid. How can AI reproduce this?
Only about 20% of negotiations with a company’s strategic suppliers take place in this way. The rest of the negotiations are quite one-sided as most of the suppliers are not strategic and, at the moment, the procurement professionals do not have enough time to deal with them.
AI can negotiate important contract terms for both the company and the supplier. Additionally, machines can reach this optimal state faster than humans and with greater precision – transforming the traditionally time-consuming and complex contract negotiation process into a faster, easier and better experience for all parties involved.
Our standalone trading platform brings that human touch to these trades. The system contacts suppliers and asks on behalf of the company how it can help them grow and what benefits it can bring them. A large company cannot pay so much attention to this process.
With Pactum, businesses can do more while unlocking millions of dollars of new business value. The machine strengthens supply teams and makes them more powerful.
Can AI Negotiate Legally?
Pactum can trade anything humans can, the only difference is scale. We cannot negotiate one-off deals, but rather things that are negotiated hundreds of times. This creates a certain level of standardization and repeatability. This even allows us to negotiate the legal conditions.
Where do you see your technology in five years?
Our slogan is: “Strategy for humans and implementation for machines”. Machine learning focuses on the abstract level, where a person has to explain the strategy to a machine. The machine then learns to do what is asked of it.
This is only the beginning of the journey towards autonomous negotiations. The technology may be deployed in other areas in the future, such as employment contracts, licenses or rental agreements. It also offers the opportunity to help people reach agreements on major challenges, especially where global cooperation is required.
- Martin Rand will speak at Procurement and Supply Chain LIVE: The Risk and Resilience Conference. The two-day hybrid event will be held April 27-28, 2022, in-person and streamed live via our fully interactive virtual platform. To attend Procurement & Supply Chain LIVE: Risk & Resilience in person or virtually, Click here. To discover the full agenda of Procurement & Supply Chain LIVE: Risk & Resilience, Click here.