AI triggers Teleperformance stock slump
PARIS, FRANCE — Shares of customer experience giant Teleperformance plunged 19% on Wednesday, a 7-year low, over fears that artificial intelligence (AI) could disrupt its core business.
The stock sell-off was sparked after Swedish fintech firm Klarna boasted strong results from its AI chatbot, which is handling two-thirds of customer inquiries just one month after launch.
Klarna said its AI assistant, developed with OpenAI, has had 2.3 million conversations so far, doing the work of 700 agents. The chatbot’s efficiency led Klarna to forecast a $40 million profit boost in 2024.
Analysts warned investors that Teleperformance could face pricing and growth headwinds as AI assistants grow more advanced and replace human workers. The company itself aims to automate 20-30% of its call volume over the next three years.
In response to the share plunge, Teleperformance management stressed that AI is already part of its service offerings and R&D efforts.
“Teleperformance management points out that the Group’s current activity in no way reflects the negative conclusions in its business that could be drawn from the technological developments mentioned in this communication,” the company said in a press release.
Teleperformance Founder and CEO Daniel Julien recently expressed optimism about the company’s growth prospects, despite challenging times marked by currency pressures, economic uncertainty, and hesitant clients.
Julien said that while 2023 was a “difficult year all over the world,” with slower GDP forecasts, Teleperformance will still deliver around 6% revenue growth this year.
