How AI is Reshaping Negotiations, Part 1

Artificial Intelligence (AI) is used and discussed by almost everyone in both their personal and professional lives. There is a current debate over whether AI (or Agentic AI) is delivering the anticipated Return on Investment (ROI), with investments reaching billions of dollars. In my DBA research, I studied the application of AI in greater detail than “applying an AI as a chatbot to summarize e-mails or meetings”. We begin, however, with a bit of history…

Do you recall the time when the most cutting-edge technology in a negotiation room was a calculator or Excel? I do; we had dedicated team members that had to deal with super large and complicated deal and margin calculations. We used mental calculations, notes (and, if you were a flashy person, an iPad to write them), and, most importantly, our reading skills to understand the other person across the table. It was a human-centric dance, with technology playing a supporting role, at best.

However, the more I read about the intersection of modern negotiations and (AI) technology, especially in my doctoral research, the more I think of AI as an exoskeleton, rather than a replacement for a negotiator. The way a physical exoskeleton enables a human to carry heavier loads and walk longer distances without substituting for the human inside, AI enhances our mental abilities and leaves the critical aspect of judgment to us. And the difference is more than most people realize.

A common thread has been observed in my recent discussions with senior executives on negotiations: the effective modern negotiator prepares and plans negotiation scenarios with AI, but never the ultimate act of connection. Think of it this way… AI can crunch the numbers, handle multiple thousands of pages of legal precedents, and even can “red team” your arguments by making up an opponent against it. One of the executives I interviewed expressed it with great accuracy:

“We use AI personas to challenge our proposals, simulating the CFO or technical lead. It reveals blind spots.”

It creates the armor, but AI cannot recreate empathy, since it cannot feel even the slightest hesitation in a CEO’s voice or the unspoken pressure that can fill a virtual Zoom meeting. Another participant suggested that,

“AI can prepare you, but it can’t care. A negotiation is still about human connection.”

The value added by the human negotiator (especially empathy) has shifted from information processing to emotional control and subtlety. Interestingly, my research also indicates that openness regarding the use of these tools can, in fact, create trust. Conversely, the misuse of AI, e.g., summarizing meetings with wrong statements, can lose credibility. But when we use AI to control our own biases, we send a message of fairness and accuracy that is respected by our counterparts.

How do we put on this exoskeleton, then, and still retain our empathy? The best negotiators I have witnessed do four things regularly.

First, they audit their online presence before commencing any dialogue. Your counterpart has probably Googled you, looked at your LinkedIn, and made a judgment before you speak a word. In a world led by cognitive trust, where individuals believe in your competence to do something first, before they believe in you as a person, your online presence is your opening handshake.

Second, they over-communicate in virtual environments, describing their actions to counter the lack of physical indicators. The phrase “I’m pausing to think about your proposal” sounds artificial, but it will avoid the silence that can be misunderstood as disapproval.

Third, they apply AI to test their logic before a meeting, rather than to execute it during a meeting. Ask AI what you consider to be the top three counterarguments to your proposal? Make it your sparring partner in a safe place, so you don’t get knocked out in the ring. Then lay it aside at the time of the meeting and be present.

And fourth, they value face-to-face time as a valuable and limited resource. We no longer have to fly around the world to get a status update, and that is why when you fly somewhere, it really means something. Reserve those moments to close the deal, establish trust at the beginning of a deal cycle, or salvage a broken relationship.

Reflecting on my DBA thesis, these results validate the overall change in our profession of negotiations. The open-ended lunches are being replaced with time-boxed and structured virtual meetings. Customers and partners today are more concerned with process, evidence, and efficiency than personality and charisma. They want to know that you can perform, not that you are nice to have a beer with. Let me know what you think.

Ultimately, this supports the main idea of my research: AI is an enabler of efficiency, not a replacement for judgment. It allows us to be better prepared, more precise, and more present. It is the exoskeleton that helps us carry the weight of complex, high-stakes negotiations in a digital world.

Thanks again, Tim H.

@misc{herglotz2026dn03,
  author       = {Herglotz, Tim},
  title        = {{How AI is Reshaping Negotiations, Part 1}},
  year         = {2026},
  month        = {2},
  number       = {3},
  howpublished = {Tim Herglotz, entry № 03},
  url          = {https://timherglotz.com/how-ai-is-reshaping-negotiations-part-1/}
}