This could be a monster stock in the making



UiPath (NYSE: PATH) specializing in automation. The tech company went public in April 2021, and the stock is down 25% from its all-time high at the time of writing. But the market may be underestimating UiPath’s long-term growth prospects.

In this Backstage Pass video, which was broadcast September 27, 2021Motley Fool contributor Trevor Jennevine shares his thoughts on how UiPath uses artificial intelligence and why this action could be a big winner for long-term investors.

Trevor Jennevine: UiPath’s mission is to fully automate the business. Essentially, it means automating any business process or workflow that can be automated. The company has the tagline, and it’s a robot for every person and they’re talking about software robots. Management is essentially looking to the future where robots will work alongside people, helping them improve efficiency, productivity and this can be anywhere – in the office, at home, in any environment.

It may sound ambitious but I wanted to frame it. In 1980, Bill Gates, when he was CEO of Microsoft had an equally ambitious vision which was a computer on every desk and in every home. I think UiPath’s vision is 10, 20, 30, 40 years old and I think we’re going to look back and think about it as it’s evident in hindsight.

To achieve this, UiPath wants low-code development of different technologies, which simplifies software development with drag-and-drop tools, automating robotic processes, which basically allows automating simple, repetitive, and based tasks. rules in order to connect to applications. Move files and folders, copy and paste data, find important dates on a calculator or calendar, then they infuse these technologies with artificial intelligence. There are a few different kinds. We talked about this earlier.

They use computer vision, which allows software robots to see natural language processing, which allows them to understand language, then machine learning, which allows them to make complex decisions, then imitate and to learn about human behavior. For example, AI allows bots to initiate conversations. They can understand documents, tax returns filed, sales figures make sense. In theory, if you work in HR and receive resumes or job applications every day, you can use these bots to help you sort through those job applications, they can identify promising ones, match them with the offer. appropriate job, summarize the information and email the hiring manager, then dial and respond to the candidate himself, letting them know what the next step in the application process will be.

A bit more complex scenario and I like this one, it has to do with mortgage origination. UiPath uses this example in one of its videos. But basically, these robots could help automate mortgage processing and mortgage application processing. They could accept the application, fill in information such as income, credit scores, add other personal information, verify title and deeds, interpret home inspection notes, and then predict risk of default, then pass all that work on to human employees. They did the background, all of the prep work for the human employee.

This is how UiPath relies on artificial intelligence and one of the things I really love about this company is that it has been recognized as a leader by many different research companies. . Forrester, Gartner, IDC has all recognized UiPath as a leader in the goal of essentially automating enterprise workflows. Then just one number that I think really pushes this house: In 2020, UiPath added more revenue to its bottom line than the next nine competitors combined.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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