Beyond Contracting Scripts: Transforming Negotiation Learning Through GenAI-Mediated Immersive Simulation

Abstract

Contracting and negotiation are foundational competences in supply chain management (SCM), yet they are challenging to teach with static cases or analytical exercises that underrepresent the dynamic, behavioral, and iterative nature of real-world negotiation. We present a Generative AI (GenAI)-mediated immersive simulation that enables learners to practice contracting and negotiation through repeated interaction with configurable AI counterparts. A working prototype based on a fashion supply chain workflow supports four structured phases: briefing/information gathering, negotiation, market events and contract execution, and feedback. It features a web-based interface for decision-making and an architecture designed for conversation logging and instructor-facing orchestration. This work-in-progress iLEAD paper contributes a design case focused on immersive learning education and design: we articulate the design rationale, describe the prototype interaction flow and system architecture, and outline a Spring 2026 plan for iterative refinement, pilot testing, and IRB-governed user experience research. At its current stage, the project should be understood as a design case and prototype description rather than a validated intervention. We conclude with practical recommendations for integrating GenAI-supported negotiation simulations into business curricula in ways that align with iLRN’s theme of moving from bounded scripts to more open, participatory, and reflective learning societies.