AI NEGOTIATIONS
What Procurement Gets Wrong and How to Fix It
Chad Johnson Former Chief Procurement Officer | Pfizer | McKesson | Humana | Centene
All opinions expressed in this paper are the author’s own.
Executive Summary
Enterprises are signing AI contracts they do not fully understand, cannot benchmark, and cannot exit cleanly. The pricing model is unfamiliar, the data risks are underestimated, and the results are reported in terms Finance will never validate.
This paper gives procurement leaders a practical framework to negotiate AI deals the same way Finance expects everything else to be bought: with clear baselines, measurable outcomes, and accountability built into the contract before anyone signs.
It also addresses a scenario most AI negotiation guides ignore entirely: what happens when the AI comes to you. Your existing software vendors are quietly embedding AI into products you already own and calling it an upgrade. No new contract trigger. No procurement review. Just a terms update at renewal and suddenly your data is feeding someone else’s model. That gap is covered here.
AI, Risk and Opportunities
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Chad Johnson is a former Chief Procurement Officer at Humana and Centene, where he led enterprise procurement transformations delivering $650M+ in validated savings across Fortune 20 healthcare organizations. He previously held global category management and procurement leadership roles at Pfizer and McKesson. All opinions expressed in this paper are the author’s own.
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Procurement Challenges in the Real World
What do procurement teams challenges look like in the real world? In this interactive session, we’ll gather input from participants on the issues they face day to day, highlight the common patterns across pricing, contract terms, and negotiation, and map them back to how they can be addressed using the Deal Leverage Management process.
- Common challenges teams consistently face across supplier pricing, contracts, and negotiations
- How those challenges show up in real scenarios (based on actual deal experience)
- How to approach and address them using a structured Deal Leverage Management process
