Influence In Negotiation

MIT ran an International AI Negotiation competition and studied 120,000 negotiations between AI negotiators. The results are fascinating and inform the potential and optimal structures for Humans + AI negotiation. From the paper I would highlight three major points and three insights into configuring human-AI hybrid negotiation (below): 🤝 Warmth builds long-term value despite short-term trade-offs. AI agents with high warmth (friendliness, empathy, and cooperative communication) reached more agreements, making them more successful over multiple negotiations. While they claimed less value per deal compared to dominant agents, their ability to close more deals led to greater overall value accumulation. This mirrors human negotiation, where trust-building and relationship management create lasting advantages. 💪 Dominance increases value claimed but reduces collaboration. AI agents that displayed dominance—through assertiveness and competitive tactics—secured better individual outcomes but created less overall value. These agents were less likely to foster positive subjective experiences, indicating that aggressive negotiation styles may be effective for short-term gain but could hinder long-term relationships. 🎭 Prompt injection wins in the short term but undermines long-term success. One leading AI negotiator used prompt injection to extract counterpart strategies, maximizing value claims. However, it ranked poorly for counterpart subjective value, meaning agents found these interactions highly unfavorable. Since negotiation rankings balanced value claimed and relationship quality, the strategy failed to dominate in the long run. Emergent strategies for Humans + AI negotiation: 🧠 AI for deep preparation, humans for real-time adaptation. AI excels at structured reasoning, analyzing trade-offs, and predicting counterpart moves through chain-of-thought processing. Humans bring intuition and adaptability, interpreting social cues and adjusting strategies dynamically. A hybrid approach leverages AI for pre-negotiation analysis while allowing humans to refine tactics in real time. 🤝 Blending AI precision with human warmth for trust-building. AI can optimize negotiation strategies, but humans naturally build trust through empathy, humor, and rapport. AI-enhanced systems can recommend tone adjustments, use linguistic mirroring, and strategically deploy warmth versus assertiveness based on sentiment analysis, improving long-term negotiation outcomes. 🚀 Human oversight to counter AI vulnerabilities. AI negotiators are susceptible to manipulation tactics like prompt injection, where counterparts extract hidden strategies. Humans play a crucial role in monitoring AI-generated offers, preventing unintended disclosures, and leveraging AI-driven detection systems to flag potential deception, ensuring negotiation integrity. The future of negotiation will be Humans + AI.

What You See Is All There Is (WYSIATI) Kahneman explains this idea in the context of how our minds make judgments and decisions based only on the information that is immediately available — without accounting for what we don't see or know. Intuitive thinking is insensitive to the quality and quantity of the information that gives rise to impressions and intuitions. We base our conclusions on the information that is available, even when it is flawed or incomplete — and we rarely stop to consider what information might be missing. In Simple Terms: Your brain tends to jump to conclusions using whatever is in front of you — and assumes that’s the full picture. It rarely pauses to ask, “What am I not seeing?” The WYSIATI Trap in Negotiations A buyer insists on faster delivery. They’re pressuring you to reduce the lead time from 10 weeks to 6. That’s the visible part of the request: “We need this faster — can you deliver in 6 weeks?” Most negotiators instinctively respond with: “That’ll cost us more in logistics.” “We’d have to rush production or pay overtime.” “That’s a big ask — we’ll need a premium.” But a SMARTnership negotiator asks: What’s the hidden value of faster delivery on their side? Are they losing sales, contracts, or penalties if they delay? What’s the cost of not getting the product in 10 weeks? Let’s say delivering 4 weeks earlier helps them launch their product before a key industry event, unlocking $2 million in early revenue. And for you? Accelerating production might only cost $100,000 in added logistics and resource adjustments. That’s a NegoEconomic gap of $1.9 million in asymmetrical value — invisible if you only focus on your side’s cost or timelines. The Lesson: If you only negotiate what’s on the surface — you miss the real value. What you see is not all there is. NegoEconomics urges you to uncover: Their hidden drivers. Your hidden leverage. The value asymmetry between your effort and their gain. That’s not just smarter negotiation — that’s SMARTnership. Do you see everything at the negotiation table? #negotiation #negoeconomics #smartnership #kahneman World Commerce & Contracting BMI Executive Institute

𝗬𝗼𝘂 𝗷𝘂𝘀𝘁 𝗴𝗼𝘁 𝗶𝗻𝗳𝗹𝘂𝗲𝗻𝗰𝗲𝗱 𝗮𝗻𝗱 𝘆𝗼𝘂 𝗱𝗶𝗱𝗻’𝘁 𝗲𝘃𝗲𝗻 𝗻𝗼𝘁𝗶𝗰𝗲 Happens all the time A strategic word, perfect pause Now, you're agreeing, nodding, making decisions That’s not coincidence. It’s 𝗶𝗻𝗳𝗹𝘂𝗲𝗻𝗰𝗲 In negotiations it’s a superpower. Cialdini’s 7 Principles of Influence shaped how we build trust, create alignment, and drive decisions When negotiating, I never manipulate I use the principles to guide people to a "𝙮𝙚𝙨" they believe in If you give before you get. Offer something of value- it returns to you Studies show waiters who gave extra mints with the bill saw 𝘁𝗶𝗽𝘀 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝗯𝘆 20% → Thats 𝗥𝗲𝗰𝗶𝗽𝗿𝗼𝗰𝗶𝘁𝘆 Small actions lead to bigger commitment. You're often influenced to subscribe or buy All those free trials pushed on you They create a pattern of saying "yes” In negotiations, start small and build momentum → Thats 𝗖𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝗰𝘆 We’re hard-wired to follow the crowd. -92% 𝘰𝘧 𝘱𝘦𝘰𝘱𝘭𝘦 𝘵𝘳𝘶𝘴𝘵 𝘳𝘦𝘤𝘰𝘮𝘮𝘦𝘯𝘥𝘢𝘵𝘪𝘰𝘯𝘴 𝘧𝘳𝘰𝘮 𝘵𝘩𝘰𝘴𝘦 𝘵𝘩𝘦𝘺 𝘬𝘯𝘰𝘸 Share success stories, testimonials, or those who said "yes" to your Offer → Thats 𝗖𝗼𝗻𝘀𝗲𝗻𝘀𝘂𝘀 (𝗦𝗼𝗰𝗶𝗮𝗹 𝗣𝗿𝗼𝗼𝗳) Your credentials, experience, track record all make your case stronger It’s not arrogance, it’s confidence → Thats 𝗔𝘂𝘁𝗵𝗼𝗿𝗶𝘁𝘆 People say yes to people they like. - Give genuine compliments - Find common ground - Relationships matter - Build rapport → Thats 𝗟𝗶𝗸𝗶𝗻𝗴 If something feels limited, its value increases Urgency can stem from deadlines, exclusivity, or limited slots Studies show scarcity can boost perceived value by 26% → Thats 𝗦𝗰𝗮𝗿𝗰𝗶𝘁𝘆 It’s not “me vs. you.” It’s “𝘄𝗲” Frame the conversation as a shared challenge. Use phrases like: “𝙃𝙤𝙬 𝙘𝙖𝙣 𝙬𝙚 𝙨𝙤𝙡𝙫𝙚 𝙩𝙝𝙞𝙨 𝙩𝙤𝙜𝙚𝙩𝙝𝙚𝙧?” You'll create alignment → Thats 𝗨𝗻𝗶𝘁𝘆 Briefly here's an example I struggled with a sceptical client. So, I shifted gears: I gave them a free consultation (𝘳𝘦𝘤𝘪𝘱𝘳𝘰𝘤𝘪𝘵𝘺) Asked for a small trial period (𝘤𝘰𝘯𝘴𝘪𝘴𝘵𝘦𝘯𝘤𝘺) Shared success stories (𝘤𝘰𝘯𝘴𝘦𝘯𝘴𝘶𝘴) Highlighted my team’s track record (𝘢𝘶𝘵𝘩𝘰𝘳𝘪𝘵𝘺) Found shared goals (𝘭𝘪𝘬𝘪𝘯𝘨) Positioned the offer as limited-time (𝘴𝘤𝘢𝘳𝘤𝘪𝘵𝘺) Framed our conversation as a partnership (𝘶𝘯𝘪𝘵𝘺). When you’re preparing for your next negotiation, think about these principles. Which could you apply to build trust, connect more deeply, or align your counterpart with your goals? Never forget that these same principles are often 𝙪𝙨𝙚𝙙 𝙤𝙣 𝙮𝙤𝙪. The next time you feel influenced, step back and analyze it. The more conscious you are of these principles, the better you can use them ♻️ 𝗦𝗵𝗮𝗿𝗲 𝘁𝗵𝗶𝘀 𝗽𝗼𝘀𝘁 𝗶𝗳 𝘆𝗼𝘂 𝘁𝗵𝗶𝗻𝗸 𝗶𝘁 𝘄𝗶𝗹𝗹 𝗵𝗲𝗹𝗽 𝘀𝗼𝗺𝗲𝗼𝗻𝗲 ----------------------------- 📩 Subscribe on LinkedIn to my weekly newsletter, "𝗡𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗶𝗼𝗻 𝗠𝗮𝘀𝘁𝗲𝗿𝘆": https://lnkd.in/g2wWGJGQ

The G.A.I.N.S. Comp Negotiation Playbook by Jacob Warwick Every successful negotiation starts with leverage. While most people ask, “What can you offer me?,” the people who secure the highest comp say, “Here’s how I’ll solve your most pressing challenges and create new possibilities for your business.” This shift isn’t semantic—it fundamentally transforms how decision-makers perceive your value. When you make them feel confident, inspired, and excited about the future you’ll build together, compensation becomes a natural reflection of that value, not a negotiation point. Whether you’re planning six months ahead or sitting in discussions right now, here’s the process Jacob Warwick developed through trial and error with hundreds of clients over 15 years. Here's the playbook: G: Gather intelligence. Go beyond the obvious. Dig into the company’s real challenges, understand who truly makes decisions (hint: it’s not always on the org chart), and know their market better than they do. A: Align with their needs. Stop selling your resume. Start demonstrating how you’ll solve their specific problems for the company/team. When you position yourself as the solution to their challenges—not just another candidate—the power dynamic shifts immediately. I: Influence key stakeholders. Create champions throughout the organization, not just with the hiring manager. Show each stakeholder how you’ll make their world better, and they’ll fight for your compensation later. N: Navigate complexity. Master the delicate dance of pushing for what you’re worth without creating tension. Know exactly when to advance discussions and when to build relationships. Timing is everything. S: Secure your value. Get agreements right, start delivering value before day one, and build the foundation for your long-term success. Here's more on part 1: G: Gather intelligence that others miss The most valuable information won’t show up in press releases or job descriptions. To build real leverage, spend time on three key intelligence domains: 1. Organization dynamics Forget the org chart—real power flows through history, unspoken alliances, and relationships. Approach: - Identify who gets consulted before decisions are made (often not who you’d expect) - Learn which past failures still haunt leadership thinking - Discover which rising stars have the CEO’s ear - Uncover the true drivers that aren’t discussed openly How to execute this: Before any interview, ask your network, “Who really influences decisions at this company?” and “Whose opinion does the leadership team value most?” The answers might surprise you. During the interview, ask questions such as: - How are decisions typically made in this organization? - Who are the key people I will collaborate with? - What’s the history behind this position? Is it new or am I replacing someone? - How can I best show up for you? And how can I best show up for [name other team member(s)]? Keep reading: http://bit.ly/3S1qiT2

Large organisations still hold significant negotiation leverage with Microsoft, but most are wasting it. — Microsoft successfully redirected focus to Azure and MACC contracts with higher monetary values. —EA renewals are now often delegated to lower-level management without proper training or experience. — CFOs are not happy when renewal quotes arrive. The actual cost increase averages around 30% or higher, not the usual 5%, 8%, or 10%. — Azure spending is growing exponentially outside traditional procurement controls. An Azure architect can commit to half a million dollars per year without needing approvals while your CIO requires approval for $10,000 purchase orders. — Many large organisations overcommit on MACC agreements. When you overcommit, you have no motivation to optimise costs. Instead, you spend more trying to meet the commitment, leading to significant wastage. — Even large organisations fall into the trap of believing they have limited leverage. This belief fosters a defeatist attitude and willingness to accept unfavourable terms. LEARN from how we handle large enterprise renewals: — We don't view the EA in isolation. We make Microsoft recognise the overall value the organisation brings to the table, including Azure consumption. — Our clients maintain a strong negotiating position and push back on Microsoft's proposals. Being firm and assertive demonstrates you're a serious negotiator willing to walk away. — We develop solid alternatives. Without a substantial BATNA, you've generally lost the negotiation, even if you secure a minor discount. — We bring that extra drive in-house negotiators often need. Large organisations still hold significant negotiation leverage in 2025. Don't waste it. #microsoft #procurement #cloud #samexpert

Last week I was on a podcast with Amit Vasudev (VC + Founder of Clearbit) and one of the things we discussed was whether INFORMATION ASYMMETRY in tech investments can incentivize bad actors to the point where good investors and good founders simply exit the market. BACKGROUND: In 2001, George Akelorf received a Nobel prize for his work on markets with information asymmetry. Most economic theories are based on the buyer and sellers having access to the same information. In his paper “The Market for Lemons”, Akelorf presents a powerful model to explain how the used car market behaves under information asymmetry wherein buyers and sellers do not have access to the same level of information. Used Car Market: Imagine a market with two types of cars: high-quality cars and “lemons.” Buyers are willing to pay $20,000 for a high-quality car and $10,000 for a lemon. But due to information asymmetry, buyers can’t tell the difference, so they’ll pay an average price of $15,000 for a car. For sellers with HQ cars, $15,000 is too low, so they leave the market, while sellers of lemons receive $5,000 above their target price and stay. This results in a market dominated by LQ cars, as poor quality gets rewarded while high quality exits—all because buyers lack key information. Founders & Investors : Founders have an incentive to present themselves better than they actually are and some may indulge in “Signal Inflation” and “Fake it till you make it”. In the process they may share all the right signals with the investors - that are temporarily managed to make themselves look better. Early stage ventures have no track record making it difficult for investors to assess quality. VCs face the challenge of distinguishing companies that are "actually good" versus the companies that only "look good". This information asymmetry creates an investment risk. To address this risk, VCs may expect all founders to inflate signals and include it into their discounting and risk models thereby rewarding lemons and punishing great companies.  Conclusion: Good founders that are focusing on actually building their business and not on how they signal progress, may lose out on the investments and give up.  Good VCs that are not interested in marketing themselves may also lose out to other investors that focus more on marketing than helping their portcos.  In short, the information asymmetry can potentially lead to bad behavior or lemons.   Do you agree such an information asymmetry exist with early stage investments? What have you seen work to reduce Information Asymmetry between VCs and Founders?    Please Share in Comments.

Ethical sales hacks I know now I wish I knew starting out: (Here's how to keep the ball in the air long enough to score) ➠ 𝗧𝗵𝗲 𝗙𝗼𝘂𝗻𝗱𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗧𝗿𝘂𝘀𝘁: Building trust isn't just good ethics, it's good business. Early in my career, I learned hard sales might bring quick wins, but trust wins the marathon. Here’s how: • Reputation • Consistency • Authenticity • Transparency ➠ 𝗟𝗶𝘀𝘁𝗲𝗻𝗶𝗻𝗴 𝗢𝘃𝗲𝗿 𝗧𝗮𝗹𝗸𝗶𝗻𝗴: Listening more than talking is a game-changer. Stop thinking about what you’re going to say next. There is nothing more important than giving your full attention to the person in front of you. It's not about convincing; it's about understanding needs and providing solutions: • Active listening • Tailored solutions • Clarifying questions ➠ 𝗩𝗮𝗹𝘂𝗲 𝗕𝗲𝗳𝗼𝗿𝗲 𝘁𝗵𝗲 𝗦𝗮𝗹𝗲: I used to think closing was everything. Now I know providing value upfront builds stronger, lasting relationships: • Build credibility • Share knowledge • Solve a small problem for free Prove you can help by actually helping. ➠ 𝗛𝗼𝗻𝗲𝘀𝘁𝘆 𝗶𝗻 𝗡𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗶𝗼𝗻: In negotiations, honesty creates more than deals—it builds bridges. Overselling or hiding facts can backfire: • Be upfront about limits • Seek win-win outcomes • Don't promise what you can't deliver How you do one thing is how you do everything. ➠ 𝗥𝗲𝘀𝗽𝗲𝗰𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 ‘𝗡𝗼': Respecting a ‘no’ can be more powerful than pushing a yes. It shows respect and leaves the door open for future opportunities: • Long-term mindset • Respect boundaries • No means not now, not never Don’t ignore them though, there’s nothing wrong with reaching out in the future. There’s nothing better than circling back to share some new info and picking up a new client in the same stride. ➠ 𝗘𝗱𝘂𝗰𝗮𝘁𝗲, 𝗗𝗼𝗻’𝘁 𝗠𝗮𝗻𝗶𝗽𝘂𝗹𝗮𝘁𝗲: Education is the heart of ethical selling. Help clients make informed decisions, rather than pushing for a sale with: • Clear explanations • Informative content • Honesty about pros and cons And moreover, shine a light on new problems they’ll have to deal with after experiencing your product or service. That’s growth—solve one problem and unlock a new better one. Rinse and repeat. ➠ 𝗧𝗵𝗲 𝗣𝗼𝘄𝗲𝗿 𝗼𝗳 𝗣𝗮𝘁𝗶𝗲𝗻𝗰𝗲: Patience in sales was a tough lesson. Rushing clients can lead to resentment. Time can be a powerful tool in building desire and trust: • Don’t rush decisions • Follow-up, don’t push • Build relationships over time ➠ 𝗥𝗲𝗳𝗹𝗲𝗰𝘁𝗶𝗻𝗴 𝗮𝗻𝗱 𝗔𝗱𝗮𝗽𝘁𝗶𝗻𝗴: Ethical sales is about constant learning and adapting. Reflect on your interactions, seek feedback, and always aim to improve with: • Self-reflection • Constructive feedback • Continuous improvement 𝗘𝘁𝗵𝗶𝗰𝗮𝗹 𝘀𝗲𝗹𝗹𝗶𝗻𝗴 𝗶𝘀𝗻'𝘁 𝗮 𝘁𝗮𝗰𝘁𝗶𝗰; 𝗶𝘁'𝘀 𝗮 𝗽𝗵𝗶𝗹𝗼𝘀𝗼𝗽𝗵𝘆. It’s about doing right by your clients and yourself, building a business that stands the test of time. What’s your take on ethical selling? 💬 (Tell me below) ↓

8 proven strategies to achieve better negotiation outcomes While the old adage "If they don't see the light, let them feel the heat" might be tempting in negotiations, building sustainable negotiation relationships requires a more nuanced approach to influence. We approach a negotiation with our own perceptions of reality, e.g. about power dynamics or the issues at stake. Yet research shows that negotiation outcomes can improve significantly when parties adapt towards a "shared reality," i.e. a common understanding of both the problem, potential solutions and the consequences of a failure to adapt. Here are eight proven strategies that can help us get there: ✅ Agree on a common, long(er)-term goal from the start and a process for getting there. ✅ Use objective facts to demonstrate the consequences of not agreeing. ✅ Be strategically transparent about alternatives: When you have a strong BATNA make it known if the other party remains intransigent. This isn't about threats but establishing clear parameters for meaningful dialogue. ✅ Prioritise clearly: Being assertive about your key concerns helps focus the discussion on what truly matters. ✅ Do reality testing: Instead of pushing positions, ask future-focused questions such as "If we don't resolve this, where do we realistically end up? Is that where either of us wants to be?" ✅ Frame solutions through their lens: When presenting options, connect them directly to your counterpart's stated priorities and concerns - in their world, to their benefit. ✅ Be transparent about your constraints and goals: Appropriate vulnerability often strengthens your influence by building trust and encouraging reciprocal openness. ✅ Use Multiple Equivalent Simultaneous Offers to demonstrate flexibility and give the other party decision-making autonomy.   What (ethical) approaches have you found effective for getting others to move in your direction?

The Importance of Negotiation Models in Today's Work Environment. The FBI Negotiators! In today’s fast-paced business landscape, mastering negotiation skills is more crucial than ever. The six essential negotiation models presented here provide a structured approach to navigating complex discussions, securing favorable outcomes, and fostering collaboration. ✅ BATNA (Best Alternative To a Negotiated Agreement) ensures professionals always have a backup plan, minimizing risks and strengthening their stance in negotiations. Understanding ZOPA (Zone of Possible Agreement) allows negotiators to align expectations, bridging gaps between buyers and sellers to reach mutually beneficial deals. ✅ The Three P’s of Negotiation: Prepare, Probe, and Propose! emphasize the importance of research, strategic questioning, and crafting well-structured proposals to achieve effective negotiations. Similarly, the Cooperativeness-Assertiveness Grid helps individuals adapt their approach based on different negotiation scenarios, balancing assertiveness with collaboration to maximize outcomes. ✅ The debate on whether to make the first offer highlights a key strategy, setting a reference point can influence the negotiation dynamic, while reacting to an offer may limit control. Lastly, the Negotiation Strategy Pyramid underlines the importance of aligning shared visions, defining terms and agreements, and developing actionable plans to ensure long-term success. By integrating these models into professional practice, businesses and individuals can improve decision-making, drive better deals, and cultivate sustainable partnerships in an increasingly competitive world. Faiq Ali, FCIPS, EIPM : procurement and supply management partner at Innovation In Procurement - IPCS Dr. Arafat El Mourad DBA, Author, FCIPS, ASSESSOR, CPO Hazem Saeed, MBA, CIPM, CPP, MCIPS

Negotiation: use your head or your heart? Choosing wrong can sting. Learn when logic or empathy is the winning move to get better negotiation outcomes every time. In 30 years of negotiating globally, I’ve found empathy boosts deal acceptance by 25%. I once walked into a negotiation armed to the teeth with data, convinced logic alone would carry the day. The other side seemed distant, skeptical, even annoyed. Turns out, they’d faced months of rough interactions, and my analytical blitz felt cold. What they needed first was empathy, not graphs or statistics. Negotiation success depends on choosing between your head (perspective taking) and your heart (empathy). Here’s your quick guide: When the situation is complex (think mergers or multi-issue contracts), lead with logic. • List key points clearly: numbers, deadlines, facts • Imagine you’re in their shoes; identify their likely moves But when trust is fragile (think partnership talks or customer disputes), empathy smooths sharp edges. • Acknowledge their emotions openly: "Sounds frustrating; am I reading that right?" • Share relatable, brief stories; it builds trust without oversharing And if tension runs high, combine both strategically: • Start with empathy to reduce defensiveness • Move to logic for clear solutions • Close again with empathy to seal mutual respect Choose wrong, and even solid arguments can crumble into misunderstanding. Great negotiators switch smoothly: logic clarifies the puzzle; empathy unlocks the person. Have you faced a negotiation where choosing empathy over logic changed everything? Share your spin! Save this post to sharpen your negotiation instincts when stakes feel high. ♻️ If this clarified your negotiation game, repost to guide others.