We’ve changed the art of negotiation into a science
Negotiation is an incredibly important skill. It makes for successful businesses and for good relationships. But, because it’s incredibly complex, it’s a skill most people aren’t able to master.
The problem is most people treat negotiation as a zero-sum game – one in which someone must lose. At Pactum, we think differently. In fact, we think the best deals get the best for both parties without harming each other – something known as the Pareto optimality.
To reach this win-win requires multiple trade-offs. It requires factors like exclusivity, payment periods, quantities and demands to be considered. It requires serious mathematical heft to get right. It’s something beyond human capability.
This is a problem for most companies because around 80% of their commercial agreements are high volume and low value – tail spend. And because there are so many suppliers, it’s hard for employees to keep on top of them and impossible to manage these deals effectively and efficiently. It’s why so much value gets left on the table and why so many suppliers go unmanaged.
Pactum changes that. Our AI automates contract negotiations between businesses and their suppliers and solutions providers. It can complete complex negotiations in just a few clicks and find an agreement for both parties in as little as 15 minutes. And because it’s automated you can engage suppliers simultaneously and on a mass scale – freeing your people to get on with strategic work.
Welcome to the future of negotiation.
What we do, and how we do it
Our AI will help you and your suppliers to find an agreement that works for both companies. It keeps everyone happy. We know that every company has different needs, which is why the AI is set-up to work within your overall strategy, priorities, and limits. It’ll use those data points to engage your suppliers in a chat-like interface.
It works because Pactum has learnt how to talk about business and to understand the limits of what can be offered on a vast number of factors. It also knows how to value the trade-offs between them. We believe it paves the way for a future in which humans carry out strategy and machines carry out implementation.
You could call it value-creation on autopilot.
Pactum is building software that is solving a crucial component for businesses to prosper. Today we have a fully functioning AI that negotiates contracts on a mass scale. But where we are today is just the beginning of the journey.
Once it has become the norm to reach supplier agreements with a computer system, the technology can be deployed in other use cases, such as employment contracts, licensing, or rental agreements. It will be able tackle the most complex and pressing negotiations. And it won’t stop there.
The reality is, humans struggle to reach agreement on major challenges, especially where global cooperation is required. But we believe that once Pactum has excelled in commercial negotiations it provides a promising platform to reach agreement on major issues affecting humanity. It’s capacity to solve high-level negotiations simply is unparalleled.