UiPath Inc. stock traded sharply lower on Wednesday after OpenAI introduced a new enterprise automation product, adding to investor concerns that advances in artificial intelligence could intensify competition in workflow automation software. The launch appeared to weigh on investor sentiment toward automation software companies, as market participants debated whether broader adoption of AI agents could reduce demand for traditional robotic process automation (RPA) tools.

OpenAI on Wednesday launched Presence, an enterprise platform that helps companies deploy AI agents across customer service and internal workflows with built-in policies, guardrails and human escalation controls. The platform supports voice and chat agents for tasks such as customer support, outbound sales and employee service requests. Companies can define agent permissions, approval rules and escalation policies, while Codex recommends updates after deployment to improve performance as business needs evolve.

OpenAI said Presence powers its English-language support line at 1-888-GPT-0090, where it resolves 75% of inbound issues without human assistance. The company added that its Codex-powered improvement process reduced human handoffs by 15 percentage points in 10 days. OpenAI also said BBVA is exploring AI-powered voice support in Mexico, SoftBank is testing Japanese-language customer conversations and IAG is evaluating the platform for customer support during high-demand events such as severe weather.

The weakness extended across parts of the enterprise software sector. Shares of ServiceNow Inc., Salesforce Inc., SAP SE and Palantir Technologies Inc. also traded lower on Wednesday.

UiPath remains in a longer-term downtrend. The stock has declined 16.9% over the past 12 months, and its 50-day simple moving average remains below its 200-day moving average following a death cross in March. The shares continue to trade below the 200-day moving average of $12.93. However, they remain above their 20-day, 50-day and 100-day moving averages, suggesting recent support is now being tested.

The moving average convergence divergence (MACD) indicator remains below its signal line, indicating weakening bullish momentum. Key resistance sits near $11.50, while $10.00 remains an important support level above the 52-week low of $9.20. UiPath shares were down 13.16% at $10.45 at the time of publication on Wednesday.

UBS analyst Radi Sultan has maintained a Neutral rating on UiPath (NYSE: PATH) while lowering the price target to $12 from $13. The revised target suggests a more conservative valuation outlook for the automation software company.

Rating and Price Target Adjustment

The decision to lower the price target comes as the firm reassesses UiPath's market position and growth trajectory. Despite the reduction, the Neutral rating indicates that the analyst sees balanced risks and rewards for the stock at current levels.

UiPath continues to operate in a competitive enterprise automation market, and the updated target reflects the latest analysis of its financial performance and sector trends.