Using AI To Negotiate Lower Monthly Bills
Slash Your Spending With AI Negotiation
Financial experts often suggest cutting small pleasures like lattes to save money, but there are more impactful ways to trim your budget. A powerful, yet often overlooked, strategy is to negotiate your regular bills directly with service providers. If you're comfortable making a phone call, this method can yield significant savings.
Artificial intelligence has become a versatile tool for saving money, from finding grocery deals to locating online coupons. When it comes to negotiation, AI can be your secret weapon. If you're unsure what to say or how to approach the conversation, AI tools like ChatGPT can help you prepare key talking points and even draft entire scripts to make your case.
Given its conversational nature, ChatGPT is an excellent choice to transform you into a master negotiator. It can help clarify complex terms, suggest effective strategies, and organize your arguments for maximum impact.
Can You Really Negotiate Bills?
Absolutely. If you've ever called your internet provider about an outage and received a discount on your next bill, you've already negotiated. It's always possible to negotiate fees and bills, especially when you have a compelling reason for a discount or waiver. To put this to the test, I decided to try using AI in two common financial scenarios:
- Getting one-time bank fees waived.
- Lowering a recurring utility bill.
Using AI to Eliminate Bank Fees
While reviewing my bank statement, I noticed a couple of small fees that had slipped through: a $15 charge for an incoming wire and a $2.50 fee for using an out-of-network ATM. These are easy to ignore, but having a script ready makes the call to the bank much less daunting. I turned to ChatGPT for help.
My First Prompt: "I have two bank fees: A $15 charge for an incoming wire fee and a $2.50 charge for a non-Citibank ATM use. I have a Citibank checking account. What talking points can I use to get these fees wiped?"
ChatGPT suggested a polite and personable approach, emphasizing my history as a loyal customer. It provided specific talking points for each fee, which was very helpful.
The initial script was a bit generic, so I provided more details to refine it.
My Second Prompt: "I've been with Citibank since 2019. Ask how I can avoid incoming wire fees in the future, given I have international clients paying into my checking account. Please update the script."
ChatGPT noted that asking for advice on avoiding future fees shows you're a proactive, long-term customer, which banks appreciate. After a few tweaks to make the AI's draft more concise, here is the final script I prepared:
"Hi, my name is Amanda, and I've been with Citibank since 2019. I noticed two fees on my account: a $15 incoming wire fee and a $2.50 fee for using a non-Citibank ATM. I usually don't incur these types of charges, so I'm calling to see if these fees can be waived?
Also, I have international clients who frequently pay me via my checking account. Could you please advise me on the best way to avoid incoming wire fees in the future?"
This script was straightforward, but I wanted to see how AI would handle a more complex negotiation.
Tackling a Recurring Internet Bill with AI
My Verizon Fios bill is $99 per month, totaling $1,188 annually. I was determined to find a way to lower this recurring expense without sacrificing service quality.
My First Prompt: "I pay $99 per month for my Verizon Fios internet. How can I get a discount or pay less than $1,188 annually?"
ChatGPT offered some excellent preliminary advice: check for current promotions, research competitor offers, and try calling at different times of the day. It also suggested using the online chat feature, which I hadn't considered.
I then asked for more creative strategies that didn't involve downgrading my plan.
My Second Prompt: "I don't want to downgrade my plan. Offer creative suggestions that I can communicate to Verizon."
This time, the AI provided a list of powerful negotiation tactics: extending my contract for a discount, asking for a loyalty discount, bundling services, paying annually, and inquiring about promotional rates or enhanced services at my current price point. I selected the most promising options and asked ChatGPT to build a new script.
My Third Prompt: "Use the extended contract, loyalty discount, annual payment discount, promotional rates, enhanced services at the same rate options in the script."
After personalizing the AI-generated script, I had a strong pitch ready:
"Hi, my name is Amanda, and I've been with Verizon Fios for over four years. I currently pay $99 a month for my internet service, which comes to $1,188 annually. I'd like to explore ways to reduce my monthly bill without downgrading my plan.
I'm willing to commit to an extended contract or pay in full for the year if that could lower my rate. Additionally, as a long-term customer, I believe I should be eligible for a loyalty discount. Are there any loyalty programs or discounts available? I've noticed there are promotional rates for new customers and competitive deals with other providers.
I value Verizon's service and would prefer not to switch providers. Is there anything you can do to lower my bill?"
ChatGPT also provided advice for playing hardball, such as asking to speak with the retention department or mentioning your willingness to switch providers.
The Verdict: Does AI-Assisted Negotiation Work?
Companies often count on customers not advocating for themselves. While there's no guarantee that every negotiation will succeed, there is no harm in trying. A 30-minute phone call could save you hundreds of dollars over time.
Using AI to prepare for these conversations is a fantastic way to build your negotiation skills, which can be applied to more significant financial moments, like asking for a raise. The key is to always be polite, come prepared with facts and figures, and be clear about your desired outcome. Remember, companies don't want to lose a valued customer.
