US EditionGlobal software stocks hit by Anthropic wake-up call on AI disruption
Anthropic's new AI legal tools automate contract review and NDAs, triggering a sharp selloff with software and data stocks dropping up to 17%, raising disruption concerns.
- Anthropic PBC launched Claude Cowork plug-ins including a legal tool that automates contract review and NDA triage, while traders said a Feb 3 sell-off cited the updated Claude chatbot and `agentic AI` tools as catalysts.
- The roll-out renewed fears that AI will threaten existing business models and hit sales and growth, while analysts said AI’s speed makes long-term valuations harder to defend for firms charging per-user fees.
- Across the FTSE 100, RELX PLC and Wolters Kluwer plunged as much as 17% and 13%, respectively, on Tuesday, amid heavy market declines, traders said.
- The sell-off deepened on Feb 3 across US and European software, data analytics and advertising stocks, with the Goldman Sachs US software basket down 6% and the iShares Expanded Tech-Software Sector ETF off 4.6%, as traders said fear often outweighed company fundamentals.
- The rapid pace of AI advancement is making long-term valuations harder to defend and threatens per-user revenue models, while investors have poured money into legal-AI startups such as Harvey AI and Legora.
27 Articles
27 Articles
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Times of India
The Economic TimesWhat is Anthropic’s new legal AI tool and why investors are dumping software stocks
Anthropic new AI tool: Explore Anthropic's new AI tool designed for the legal industry, its implications on software stocks, and the rising competition in legal AI.
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