AI’s next target: often-stressful salary negotiations

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Salary negotiations — among the most high-stakes, emotionally fraught and psychologically complex processes many employees will ever experience — could soon get the artificial-intelligence treatment. Pactum AI, the world’s largest provider of automated procurement negotiation, has been using AI chatbots to negotiate the packages of its employees since 2021. Ironclad, a startup backed by Sequoia and Accel, is gearing up to launch an AI agent that specializes in employment contract analysis.

Individuals can use publicly available chatbots to role play negotiations and brainstorm compensation packages.
Salary negotiations are often unsatisfying and nerve-wracking for workers, time consuming for employers, and deliver subjective and unequal outcomes — so anything that might improve the process is worth considering.

COVID-era workplace disruptions changed many employees’ expectations around work-life balance and led some workers to focus as much on benefits as on gross salary.

In the rosiest scenario presented by AI proponents, the technology could broaden the scope of workplace negotiation to reflect different priorities workers may have at different stages of life and with varying family responsibilities.

Few people enjoy negotiating — and it can be difficult to repeatedly demand more money or benefits from a person you may have to deal with for years to come.