** Virtual signing platform DocuSign's DOCU.O shares fall 2.3% to $70.45 on Weds, adding to a big loss in prior session

** DOCU shares on Tues tumbled ~12% following OpenAI's launch of DocuGPT

** Jefferies analyst Brent Thill says in note on Weds the shares fell on fears of AI displacement, pointing out that DocuGPT can analyze a contract and extract key terms for further review by workers in OpenAI's finance department

** The feature "looked compelling in OAI's specific use case," Thill says, but adds that a similar feature has been available for several months in DOCU's IAM (Intelligent Agreement Management) suite, including AI-powered contract insights

** Thill also argues that DOCU's IAM and CLM (Contract Lifecycle Management) products are "more attractive to most customers, who aren't building bespoke features internally, as they provide a proven, off-the-shelf suite" for small businesses to enterprises

** He sticks with 'buy' rating on DOCU and $105 PT

** Of 23 analysts covering DOCU, 7 rate the stock "strong buy" or "buy", rest rate "hold"; median PT is $90.61, according to LSEG data

** With the decline on Weds, stock down ~22% YTD

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com ; 1-646-279-6380))