Hedge funds ramp up bets against call centre stocks as AI advances

Hedge Funds Short Call Centre Stocks Amid Growing AI Threat

Hedge funds are building short positions against call centre and business process outsourcing companies, wagering that artificial intelligence will erode the industry’s revenue models faster than the market expects.

Shares of Teleperformance out on loan have risen to 6.4% of available stock, up from 3.8% in late January and well above the 2.4% average for European technology-services companies, according to S&P Global Securities Finance data cited by the Financial Times. The Paris-listed company’s short interest has climbed further still — reaching roughly 11% of shares shorted as tracked by independent monitors.shortregister

A Sector Under Pressure

The phenomenon extends beyond Europe. Concentrix, one of the largest US-listed customer experience providers, had 10.52 million shares sold short as of mid-May 2026, representing 17.4% of its float. The stock slid earlier this year on AI disruption concerns, with analysts pointing to the rapid advancement of large language models capable of handling routine customer interactions.yahoo

TTEC Holdings, another prominent outsourcer, has also suffered share-price declines in 2026 as bearish sentiment intensified across the subsector. The Financial Times reported that hedge funds are targeting both the equity and debt of outsourcing firms providing call centres, telemarketing, and related services.ft

The AI Catalyst

The bets reflect a growing conviction that conversational AI has matured enough to replace large portions of contact centre labour. According to Gartner, conversational AI deployments in contact centres are expected to reduce agent labour costs by $80 billion globally. Modern platforms now use large language models, real-time analytics, and predictive intelligence to automate tasks that once required thousands of human agents.cxtoday

The broader “AI disruption trade” has already swept through software, logistics, and insurance stocks in 2026. In early February, software and services companies lost roughly $300 billion in market value after the release of new AI-driven automation tools. CNN Business reported that the sell-off spread from software into insurance, brokerage, real estate, and trucking sectors as investors reassessed which business models face commoditisation.nytimes

Outsourcers Push Back

Some in the industry argue the threat is overstated. Concentrix was named to the Fortune 500 for a third consecutive year in June 2026, touting its own AI capabilities and positioning itself as a technology partner rather than a labour-cost play. Teleperformance appointed a new chief executive in March as it seeks to pivot its strategy.tp

Yet the weight of hedge fund money tells a different story. Short-selling campaigns hit 166 globally in 2025, a 55% increase from the prior year, according to Diligent Market Intelligence — and 2026 appears poised to extend that trend into new corners of the services economy.businessinsider