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How artificial intelligence augments real-world negotiating – Kellogg School of Management

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Can AI help you win at the negotiation table? 

“Inherently, the answer is yes,” says J. Jay Gerber Professor of Dispute Resolution and Organizations Leigh Thompson ’82, ’88 PhD. “The smartest negotiators aren’t resisting AI — they’re using it strategically, ethically and with full awareness of its limits.” 

Thompson’s Negotiating in a Virtual World (MORS 471-5) course challenges students to design an AI negotiation agent during a five-week elective that delves into how negotiations most often occur: with limited face-to-face — or in-vivo — interaction. Negotiating in a Virtual World is the embodiment of its name. The class never meets in person, and students begin by “negotiating” how and when they will meet. The deadlines are firm, applying pressures that exist in real-world business negotiation. 

“The learning is intentional in bridging science and practice; every simulation is grounded in research-tested frameworks for virtual negotiation, media choice, AI usage and is not just anecdotal ‘war stories,’ ” says Himanshu Bhardwaj ’26 Evening & Weekend MBA.  

Students are presented with a set of AI-related inquiries throughout the course, which include: 

What are the key qualities of a successful AI negotiation coach? (Hint: it stretches beyond economics to include warmth, empathy and confidence) 
“Creating my own AI negotiation coach was one of the most interesting parts of the course. At first, it felt somewhat unconventional, almost like designing your own training partner. But as the process unfolded, I realized how powerful it could be,” says Joey Nassar ’27 Evening & Weekend MBA. By shaping the prompts and parameters, I could tailor feedback to my negotiation style and learning goals. The experience showed how AI can become a personalized learning tool rather than just a source of answers.”
The course takes place in a virtual setting creating space for students from a diverse mix of Kellogg programs and campuses. In the past, this has included members of the Two-Year, One-Year, Evening & Weekend and JD-MBA programs. Nassar appreciated the exposure to other perspectives as they helped him better grasp common notions about AI and negotiations. 

“The experiential curriculum reaffirmed that effective negotiation still depends on human skills like empathy, framing, preparation and strategy,” Nassar says. “However, when used correctly, AI can accelerate learning by enabling students to simulate scenarios, test approaches and receive quick feedback.”

Thompson notes that the diversity of students introduces real differences in incentives, schedules, communication styles, backgrounds and constraints that mimic the kinds of dynamics negotiators face in the real world. 
“The course demonstrated that AI can help students practice more, reflect more deeply and prepare more effectively,” says Nassar. “For business leaders, learning how to integrate AI into decision-making and preparation will likely become just as important as mastering the negotiation frameworks themselves. AI is a powerful tool that can certainly assist with any task, but … it does not replace the human element.” 

Each week, students are required to prepare for a new negotiation, complete the challenge by a firm deadline, submit a post-negotiation survey and actively contribute to the class discussion board. Thompson personally responds to all discussion posts. The highly experiential course is a great fit for students who want to learn by doing. Scenarios include one-on-one, team-based and multi-party negotiations.

“I enjoyed negotiating virtually across a spectrum of situations, which allowed me to become more comfortable both creating and claiming value in complex negotiations,” Bhardwaj says. “The course helped me understand how to strategize and tactically navigate negotiations when not face-to-face by adapting communication styles to establish trust, prevent misunderstandings and lead remote teams.” 

Thompson holds debriefs at the end of each week to provide research-backed tips for how, when and why to use AI in negotiation. Students are also provided the opportunity to negotiate with “Argus,” an AI agent created by Thompson. 

“Negotiation has always required preparation, strategy and emotional intelligence. That hasn’t changed,” she says. “But what has changed is that negotiators — many of them unknowingly — are now showing up to the bargaining table with a silent partner: artificial intelligence. That’s a newer element that everyone needs to be prepared for.”

Read Next: Can Business Negotiation Strategies Work with Friends and Family?

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