Who Does Better? Exploring the role of AI in negotiations

Abstract: Drawing on automation and augmentation theories, this research examines AI's role as both a competitor and a collaborator in human negotiations. Using a recruitment simulation, Study 1 demonstrates that human-AI dyads achieve significantly higher collective scores and greater integrative potential than human-human pairs. To explain these findings, Study 2 utilizes an inductive approach to uncover the underlying process mechanisms unique to human-AI interactions. These results offer critical insights for applied contexts like procurement, where understanding AI-facilitated agreements is essential for optimizing strategic decision-making.

Keywords: Negotiation, AI, automation, augmentation