Score: 3

The Automated but Risky Game: Modeling and Benchmarking Agent-to-Agent Negotiations and Transactions in Consumer Markets

Published: May 29, 2025 | arXiv ID: 2506.00073v4

By: Shenzhe Zhu , Jiao Sun , Yi Nian and more

BigTech Affiliations: Stanford University

Potential Business Impact:

AI agents can make bad deals for shoppers.

Business Areas:
Machine Learning Artificial Intelligence, Data and Analytics, Software

AI agents are increasingly used in consumer-facing applications to assist with tasks such as product search, negotiation, and transaction execution. In this paper, we explore a future scenario where both consumers and merchants authorize AI agents to fully automate negotiations and transactions. We aim to answer two key questions: (1) Do different LLM agents vary in their ability to secure favorable deals for users? (2) What risks arise from fully automating deal-making with AI agents in consumer markets? To address these questions, we develop an experimental framework that evaluates the performance of various LLM agents in real-world negotiation and transaction settings. Our findings reveal that AI-mediated deal-making is an inherently imbalanced game -- different agents achieve significantly different outcomes for their users. Moreover, behavioral anomalies in LLMs can result in financial losses for both consumers and merchants, such as overspending or accepting unreasonable deals. These results underscore that while automation can improve efficiency, it also introduces substantial risks. Users should exercise caution when delegating business decisions to AI agents.

Country of Origin
πŸ‡ΊπŸ‡Έ πŸ‡¨πŸ‡¦ Canada, United States

Repos / Data Links

Page Count
18 pages

Category
Computer Science:
Artificial Intelligence