In early February 2026, DocuSign faced significant challenges amid a software sector sell-off driven by concerns about AI disrupting traditional software models. The launch of Anthropic’s AI legal automation tools heightened fears that new AI capabilities could diminish DocuSign’s relevance, as they could perform functions like contract drafting and routing more efficiently. DocuSign’s investment narrative hinges on the belief that digital agreements remain essential and that its Intelligent Agreement Management and Iris AI can adapt to automation trends. However, a recent 10.7% decline in share price signals increasing competitive pressure, indicating that if DocuSign’s AI doesn’t advance, standalone eSignature solutions may become obsolete. Investors are monitoring IAM adoption and collaborations with major platforms like Microsoft and Salesforce. Competing fair value estimates for DocuSign range from $70 to $118, suggesting differing perspectives on its potential and further illustrating the urgency for investors to assess its AI roadmap.
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