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An experiential course at Kellogg School of Management is challenging students to explore the design and ethics of AI tools in negotiation, preparing them for an evolving business landscape.
Professor Leigh Thompson, the J. Jay Gerber Professor of Dispute Resolution and Organizations at Kellogg, asserts that artificial intelligence is becoming a crucial asset at the negotiation table. She states that "the smartest negotiators aren’t resisting AI — they’re using it strategically, ethically and with full awareness of its limits." This perspective underscores a significant shift in modern negotiation practices, where AI is viewed not as a replacement for human skills but as a powerful augmenting force. The article introduces an innovative course, 'Negotiating in a Virtual World,' designed to address this change by immersing students in the practical and ethical challenges of integrating AI into negotiation strategies. This proactive approach by Kellogg aims to equip future business leaders with the necessary tools and mindset to navigate an increasingly AI-driven commercial environment, emphasizing both the opportunities and responsibilities that come with advanced technology.
Thompson's elective course, 'Negotiating in a Virtual World,' offers a unique and highly experiential learning environment spanning five weeks. The course itself is conducted entirely virtually, which includes students collectively negotiating their meeting schedules and deadlines, thereby replicating the inherent pressures and dynamics of real-world business negotiations that often occur without face-to-face interaction. The curriculum is meticulously built upon research-tested frameworks related to virtual negotiation, effective media choice, and the strategic application of AI. Himanshu Bhardwaj ’26, an Evening & Weekend MBA student, highlights the course's strength in bridging academic theory with practical application, noting that every simulation is grounded in robust research. This structure ensures that students gain deep, actionable insights into mastering negotiations in complex digital settings, moving beyond traditional methods to embrace technological advancements.
A cornerstone of the 'Negotiating in a Virtual World' course is a major deliverable where students are tasked with creating their own AI negotiation agents. This hands-on project compels them to confront critical questions regarding the nature and ethics of AI in negotiation. Students must determine the essential qualities of a successful AI negotiation coach, recognizing that effectiveness extends beyond purely economic factors to encompass attributes like warmth, empathy, and confidence. Furthermore, the course delves into the complex ethical dilemma of when to disclose the use of AI during a negotiation and whether AI-negotiation agents should adhere to the same ethical standards as human negotiators. Joey Nassar ’27, an Evening & Weekend MBA student, found the experience of shaping the prompts and parameters for his AI coach to be profoundly insightful, transforming AI into a 'personalized learning tool' rather than merely a source of information. This immersive design process encourages a nuanced understanding of AI's capabilities and its societal implications.
The virtual format of the course attracts a diverse cohort of students from various Kellogg programs, including the Two-Year MBA, One-Year MBA, Evening & Weekend MBA, and JD-MBA. This rich mix of backgrounds introduces a variety of incentives, communication styles, and constraints, closely mirroring the multifaceted dynamics of actual global negotiations. Students consistently highlight the complementary relationship between AI and human capabilities. Joey Nassar observes that the experiential curriculum reinforced the idea that "effective negotiation still depends on human skills like empathy, framing, preparation and strategy," while AI can significantly "accelerate learning by enabling students to simulate scenarios, test approaches and receive quick feedback." Himanshu Bhardwaj appreciated how the course enhanced his ability to "strategize and tactically navigate negotiations when not face-to-face by adapting communication styles to establish trust, prevent misunderstandings and lead remote teams." These testimonials underscore the course's success in demonstrating that while AI is a powerful tool, it ultimately serves to augment, not replace, the irreplaceable human element in negotiation.
Professor Thompson concludes by emphasizing that the core principles of negotiation – thorough preparation, strategic thinking, and emotional intelligence – remain fundamental. However, she notes a critical evolution: negotiators are increasingly entering discussions with "a silent partner: artificial intelligence," often without full awareness. The 'Negotiating in a Virtual World' course actively prepares students for this new reality by providing weekly debriefs with research-backed strategies on how and when to effectively leverage AI. Students also gain practical experience by negotiating with 'Argus,' an AI agent developed by Professor Thompson, offering direct exposure to AI's capabilities and limitations. This forward-thinking curriculum ensures that Kellogg graduates are not just abreast of technological advancements but are also proficient in integrating AI ethically and strategically into their negotiation practices, ready to excel in the complex, AI-augmented business world.