(News Bulletin 247) – The title of the specialist in outsourced customer relations has regained nearly 12% since Friday, as investors qualify the repercussions of generative artificial intelligence on the group’s business model.

Teleperformance has been performing a small stock market rally for the past few sessions. With the increase of 4% this Tuesday to 157 euros around 3:20 p.m., the outsourced customer relations specialist has taken up nearly 12% in the space of three sessions, i.e. since Friday at the opening.

It is possible that the market will take a small breath of relief, the group having been maintained within the CAC 40, unlike Vivendi which will give way in a few days to Edenred, as announced Thursday evening by the scientific council of Euronext. The fall in the group’s title, by 30% since January 1, the strongest of the Parisian index, could potentially threaten its place in the stock market elite.

A Parisian analyst nevertheless evokes other factors to explain the rise in price. “Several research firms have published positive comments and the market is probably now trying to make sense of the impact of artificial intelligence (AI) on society. was excessively oversold, which explains the rebound of the title”, he explains.

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AI, threat or opportunity?

The Teleperformance share was penalized by publications below expectations in terms of growth, the announcement of a large-scale acquisition (Luxembourg Majorel for a total of 3 billion euros) not necessarily well received by the market, with a little dilution of shares in the key, Teleperformance planning partly to pay this redemption in shares. But also, therefore, by fears that the emergence of generative AI, personified by conversational robots like ChatGPT, will disrupt the company’s business model.

The whole question, however, is whether the market has over-sanctioned the stock. In a note released last week, Royal Bank of Canada answered in the affirmative. “We consider Teleperformance shares to be grossly oversold due to investor anxiety over the long-term disruptive impact of ChatGPT and the like,” wrote the Canadian bank, which maintained its rating at “outperform” and downgraded its price target at 230 euros.

“Regardless of the scenario chosen,” “we believe that AI will profoundly change the landscape of the customer experience industry in the long term. However, we believe that the current share price does not take into account the potential for Teleperformance to continue to adapt, capitalize on new AI-related revenue streams or benefit from increased outsourcing penetration and organic market share gains,” Royal Bank of Canada also argues. . The bank is also positive on the acquisition of Majorel, which should allow a double-digit accretion in earnings per share in 2025, according to it.

Recall that Teleperformance made an effort, during the presentation of its first quarter turnover, at the end of April, to present generative AI as an opportunity.

The company has also developed its own product “TP GPT”‘ which integrates technologies from OpenAI, the company behind ChatGPT. The company considers that 20% to 30% of its volumes could be automated in the next three years and stressed that AI could “optimize its operations”. She gave as an example a telephone call whose length was reduced by 39% thanks to these technologies.

“ChatGPT is a great opportunity to continue to develop new, more efficient hybrid solutions, combining automation and employee expertise. Teleperformance is also using this technology to accelerate the transformation of its own operations, particularly in terms of recruitment and training”, said his side said Bhupender Singh, chairman of the group’s transformation, quoted in a letter to shareholders published in June.