UiPath (PATH) stock plummeted 5.06% in pre-market trading on Friday, as the company's traditional Robotic Process Automation (RPA) business model continues to face challenges from the rapid advancements in generative AI technology.

Many investors are concerned that the rise of generative AI models could potentially disrupt UiPath's core RPA software, which is used for automating repetitive tasks such as filling out expense reports or inputting data into spreadsheets. These types of tasks could potentially be automated using generative AI, threatening UiPath's business model.

However, UiPath is not idly standing by. The company has unveiled a new strategy to adapt to the changing landscape with its "AI Agents" software called Agent Builder. This platform allows users to build AI agents to perform various tasks using third-party large language models (LLMs). According to UiPath, over 1,000 organizations have already signed up for Agent Builder, indicating significant interest in the new offering.