Problem The company often overpays when signing service contracts. This happens due to: Employees who initiate purchases and procurement specialists don’t always know what constitutes a fair price for services. There’s no efficient system for quickly comparing current contractor proposals with historical data or market benchmarks. A tendency to avoid conflict: employees rarely challenge inflated prices because they’re unsure of their calculations or hesitant to engage in negotiations.
AI assistant can: • Analyze contract histories to automatically identify average prices for similar services from past projects. • Build a “service-price” library with standardized metrics, allowing price estimates for new, similar services, even when descriptions slightly differ. • Compare prices in real time by checking contractor proposals against internal company data and market indicators (e.g., regional pricing trends, seasonal fluctuations). • Provide negotiation support by highlighting key cost items and suggesting arguments for price reductions. • Recommend ways to reduce uncertainties in scope and specifications, hence reduce the quotation prices
Expected result • Reduced overpayments: contracts will be based on objective data rather than subjective judgments. • Greater confidence for procurement teams: they’ll be able to verify prices quickly and negotiate with solid facts. • Improved transparency: decisions will be backed by historical data and market analysis, making contract approvals smoother. • Risk mitigation: the system will help spot subtle pricing discrepancies and reduce reliance on individual opinions. • Optimized service-related expenses for the company.