The Role of IoT in Shaping the Future of Supply Chain 23rd edition | Page 67

Negotiation Automation Platform
Within this framework , the utility function and acceptance zone are constructed based on internal company data , such as inventory levels , available resources , production capacity , production plans , target profits , and safety margins . The counterparty ' s behavior and algorithm are inferred from data like logs from past negotiations .
Furthermore , negotiation AI designed for humans and other AI counterparties have been developed . In one case , the negotiation AI can exchange negotiation messages in humanunderstandable language . Some of these systems can even recognize the counterparty ' s reaction based on differences in expressions for the same content of offers and replies .
Technologies have been developed to cope with such scenarios . In cases where the counterparty is also an AI negotiation agent , standardization of negotiation protocols is being undertaken to establish inter-agent connectivity and interoperability . These standardization efforts will be discussed in the subsequent section on the Negotiation Communication Platform .
3.2 NEGOTIATION COMMUNICATION PLATFORM
The communication platform manages negotiation messages and related information exchanged between companies . As such , it supports a range of functions , such as authentication for participating agents , connectivity capabilities with appropriate negotiation counterparties , management of negotiation protocols , and recording of negotiation messages and outcomes .
As mentioned previously , interconnectivity and interoperability are essential in negotiations between AI agents . Consequently , eNegotiation protocols for negotiation messaging are defined and standardized by the United Nations standardization organization , UN / CEFACT 4 .
Among the five fundamental activities in business transactions , eNegotiation standardizes the " negotiation " layer and formalizes protocols and message expressions , as shown in Figure 3-1 .
Figure 3-1 : UN / CEFACT eNegotiation .
4 https :// uncefact . unece . org / display / uncefactpublic / E + Negotiation 62
August 2023