Shares of Teleperformance fell 20% on Thursday, after the French call center and office services group failed to meet its full-year revenue target and reported a “volatile economic environment.”
Investors have been spooked by the potential impact of AI on their business model, as companies become more able to directly leverage the technology for their own benefit.
Teleperformance shares fell 16% last week, according to LSEG data, after Swedish financial services company Klarna said its open AI-powered customer service assistant was handling two-thirds of customer service calls.
But Teleperformance CEO Daniel Julian said Thursday that artificial intelligence will be positive for its business model — but it will not completely replace the value of human interaction.
“AI is part of the solutions we provide to clients,” Julian told CNBC's “Squawk Box Europe.”
“AI helps increase the accuracy of our employees…which is great, but ultimately we are here to reduce the friction between the citizen, or the customer, and the companies they purchased a product and service from.”
“It's not just a transactional relationship, it has a lot to do with reassurance, trust and empathy,” he stressed. “So we view AI as enhancing the job that our human employees do, but not replacing them at all.”
Teleperformance stock price
Teleperformance reported 2.3% higher revenue to €8.345 billion ($9.091 billion) in 2023, with net profit falling year-on-year from €643 million to €602 million. Diluted earnings per share were €10.18, down from €10.77.
The company said in its results that it is working with clients on 250 AI projects, including generative AI, and has expanded its portfolio with new partnerships in this field.
“Even the most advanced high-tech companies or the most involved in artificial intelligence are clients of Teleperformance. We have chosen to have integration, not separation,” Julien told CNBC, referring to the company's agreement with the tech giant and major player in the field of artificial intelligence. Microsoft.
“They are there to provide a solution that will increase productivity, increase the quality of information that can be provided to the customer, but at the end of the day, the customer is a human. The day the customer becomes a human it will be a robot, and AI will probably replace humans.”
