UBS downgrades stock of a company with 400,000 workers — thanks to 'significant uncertainty' from AI

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The investment bank cut its price target for the stock by 65%.

UBS has downgraded the shares of Teleperformance , which has around 400,000 customer service agents worldwide, over the "significant uncertainty" the company faces from the rise of artificial intelligence. The investment bank downgraded its rating on the stock from "buy" to "neutral," citing concerns that new AI tools could significantly disrupt the customer experience industry that the Paris-listed company dominates.

According to the analysts, it could take several years before the full implications of AI disruption become apparent. They pointed to past cases of disruption, such as digitalization and offshoring, in which valuations remained depressed for long periods unless financial performance improved. However, as an incumbent market leader, Teleperformance should be able to partially offset that impact by embedding AI into its operations to improve employee productivity and offer new services, UBS noted.

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