How will AI shape the future of freight negotiations?

This fireside chat recap is from Wednesday, the first second day of FreightWaves’ Global Supply Chain Week.

FIRESIDE CHAT TOPIC: M&A activity in 2022 and an outlook for 2023.

DETAILS: Are humans doing too much of the work when it comes to freight and supply chain negotiations? Martin Rand, CEO and co-founder of Pactum AI, dives into how AI dealmaking bots can determine favorable contract terms, identify cost-effective rates and even forge relationships with carriers, vendors and other supply chain players.

KEY QUOTES FROM RAND:

On AI’s ability to navigate seas of data: “Moves are happening all the time, and the environment around these moves is changing. So there is a lot of data surrounding those moves, a lot of complexity, and there’s a lot of fast-moving data. … What a machine can do is go through all the underlying data about, let’s say, a single container moved from point A to point B and understand what moves have been done in the past, which carriers are perfect for this move and how to negotiate the move.”

On AI’s potential to reduce carbon emissions: “If a single entity can negotiate a whole value chain, then what we can do is we can turn carbon emissions into a tradeable term that gets negotiated through the hubs of the supply chain. … Suddenly, it becomes beneficial for the vendor’s vendor to reduce their carbon footprint.”

On the potential for bot-bot negotiations: “If a bot negotiates with a bot, then a deal could be renegotiated at any fluctuation of a commodity price. A deal can happen every couple of seconds if necessary — we are not bound by renegotiating something annually.”

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Editor: Jack Daleo