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20 J. Bus. & Tech. L. 1 (2024)

handle is hein.journals/jobtela20 and id is 1 raw text is: THE ADVENT OF THE AI NEGOTIATOR: NEGOTIATION DYNAMICS IN THE AGE OF SMART ALGORITHMS HORST EIDENMfJLLER* ABSTRACT Artificial Intelligence (Al) applications are increasingly used in negotiations. In this essay, I investigate the impact of such applications on negotiation dynamics. A key variable in negotiations is information. Smart algorithms will drastically reduce information and transaction costs, improve the efficiency of negotiation processes, and identify optimal value creation options. The expected net welfare benefit for negotiators and societies at large is huge. At the same time, asymmetric information will assist the algorithmic negotiator, allowing them to claim the biggest share of the pie. The greatest beneficiary of this information power play could be BigTech and big businesses more generally. These negotiators will increasingly deploy specialized negotiation algorithms at scale, exploiting information asymmetries and executing value claiming tactics with precision. In contrast, smaller businesses and consumers will likely have to settle for generic tools like the C 2024 Horst Eidenmuiller. * Statutory Professor for Commercial Law at the University of Oxford and Professorial Fellow ofSt. Hugh's College, Oxford. This essay was developed from a short contribution to the University of Chicago symposium on How Al Will Change the Law (April 12-13, 2024) which will be published on the UCLR Blog. I would like to thank the participants for their feedback. I am particularly grateful to Omri Ben- Shahar (Chicago), Genevieve Helleringer (Oxford), and Klaus Schmidt (LMU Munich) for their detailed comments and suggestions. Journal of Business &Technology Law 1

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