Why LivePerson Stock Skyrocketed Today

What happened

Shares of LivePerson (LPSN 2.49%) climbed 22% on Wednesday after the customer engagement software provider announced some exciting artificial intelligence-powered upgrades to its platform. 

So what

LivePerson wants to help its customers make the most of the stunning recent advances in artificial intelligence (AI). To do so, the web chat pioneer will integrate OpenAI's ChatGPT and other generative AI technologies into its industry-leading Conversational Cloud platform.

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NASDAQ: LPSN

LivePerson

Today's Change

(-2.49%) $-0.07

Current Price

$2.74

Key Data Points

Market Cap

$33M

Day's Range

$2.72 - $2.85

52wk Range

$2.37 - $21.60

Volume

93K

Avg Vol

148K

Gross Margin

62.20%

LivePerson's technology excels at helping companies better understand their customers' intentions during digital interactions. By helping its clients reduce their customer care costs and boost sales, LivePerson has built a large presence in industries such as retail, banking, travel, and telecommunications. 

LivePerson will combine generative AI technology -- which essentially uses algorithms to create text, images, and other forms of novel content -- with its Conversation Assist system. LivePerson says this will make the AI-produced outputs more accurate and useful to customers.

LivePerson will also leverage OpenAI's popular offering, ChatGPT, to provide new tools for customer service agents. ChatGPT allows users to interact with AI in a conversational way. LivePerson will use ChatGPT to enable auto-completion and auto-summarization abilities for its clients, among other features.

CEO Rob LoCascio said in a press release:

With the debut of ChatGPT's LLM [large language model] and other generative AI technologies driving intense public interest in AI capabilities, enterprise brands are scrambling to leverage them in conversational experiences to generate better business outcomes.

Now what

Perhaps most excitingly, LivePerson intends to develop new generative AI solutions that can take action and solve problems rather than simply answer questions. LivePerson believes this will eventually create new use cases for its data-rich Conversational Cloud program, which processed more than 10 billion customer interactions in 2022 alone.