DocuSign (DOCU) Falls 12% as OpenAI Launches DocuGPT

We recently published 11 Stocks Failing to Keep up With The Market. DocuSign, Inc. (NASDAQ:DOCU) is one of the top performers on Tuesday.

DocuSign, Inc. (NASDAQ:DOCU) dropped its share prices by 12.24 percent on Tuesday to end at $72.09 apiece as investors sold off positions after OpenAI launched its own tool called DocuGPT.

The new tool is said to be a powerful AI tool that aims to streamline contract management processes, and an AI agent specifically crafted to manage extensive volumes of contract data.

According to OpenAI, DocuGPT is able to convert contracts into structured and searchable data. Finance teams use it for faster and more consistent review at scale.

The launch posed a significant threat to DocuSign, Inc. (NASDAQ:DOCU), which, for a long time, has dominated the electronic agreements and management industry.

The launch of DocuGPT could put significant pressure on the company’s profit margins, given the former’s quicker support and response, with automatic review and triage of contracts, and making agreement data searchable, among other features.

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READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.