Here's how you can navigate the risks and rewards of using chatbots in contract negotiation.

AI-controlled chatbots are a great development and certainly enrich daily work in many areas by taking over clearly structured and narrowly defined work steps. In my opinion, the failure rate is currently still too high for complex contract negotiations. Furthermore, there is a lack of the human element of engaging with the emotions, nuances and negotiation strategies of the other party and flexibly adapting one's own strategy. However, like any learning system (human or machine), this hurdle will also be overcome in the medium term and increasingly become a supporting tool.

Using chatbots regularly can significantly streamline the negotiation process by automating routine tasks, helping ensure consistency in contract language and reduce human error. However, they may lack the nuanced understanding of complex legal language and context, potentially leading to misinterpretations. Sensitive information handled by chatbots poses security risks if not properly protected therefore you should only stick to internal tools provided by your company or if you don’t have them, use external but never put in any type of sensitive information. If you’re not sure if the info is sensitive, it most likely is so don’t use it. Therefore they should be used as a supplementary tool rather than a replacement for human expertise.

It will be really interesting when the models incorporate the ability to identify which negotiator profile the user of the other party has and from this assume the most beneficial role to reach the objective proposed by the company. This will require the models to collect not only descriptive information but also information from the user's negotiating profile (Competitive Negotiator, Collaborative, Compromising, Accommodating, Evasive or Analytical).

Before diving into the complexities of contract negotiation with chatbots, it’s crucial to grasp what chatbots are and how they function. Chatbots are AI software that can conduct conversations with users in natural language through messaging applications, websites, or by phone. They interpret and respond to queries, automating customer service tasks. In contract negotiations, chatbots can be programmed to recognise key terms and clauses, suggest amendments, and draft initial contract proposals based on predefined rules and negotiation strategies. However, chatbots are not lawyers, and it’s essential to consult a qualified legal professional for comprehensive advice.

As I said before we must wait to use CHATBOTS for contract negotiations, AI is an amazing tool but still is too premature to think that is capable to replace the knowledge of a professional or specialist in legal matters. Of course as we are seeing AI is going to be an even more powerful tools than is today to help us to work better even in agreements negotiations. Today human intelligence is not replaceable on contract negotiations.

Understanding the risks associated with using chatbots for contract negotiation is paramount. The most significant risk is the potential for miscommunication. Chatbots may not fully comprehend complex legal jargon or the nuances of human negotiation tactics. This could lead to errors in contract terms or misunderstandings that jeopardise the deal. Additionally, there's a risk of over-reliance on technology, where the human negotiator may defer critical thinking to the chatbot, potentially missing out on better negotiation outcomes. Ensuring human oversight and consulting legal professionals is essential to mitigate these risks effectively.

Despite the risks, the rewards of using chatbots in contract negotiation can be substantial. They offer the ability to process vast amounts of data quickly, identify patterns and commonalities in contracts, and automate repetitive tasks. This efficiency can save time and reduce the workload on human negotiators, allowing them to focus on more strategic aspects of the negotiation. Moreover, chatbots can provide real-time assistance by suggesting negotiation tactics based on historical data, which can lead to more favourable contract terms. While the benefits are significant, it's essential to maintain human oversight and consult legal professionals to ensure optimal outcomes.

A calculator won't help when you're lost in the woods. Similarly, please don't use a chatbot/LLM when negotiating a contract. Just don't.