Artificial Intelligence
Anthropic’s New AI Legal Tool Sparks Global Sell-Off in Data and IT Stocks
Global markets were rattled this week after U.S. artificial intelligence startup Anthropic unveiled a powerful new AI tool designed to automate legal and professional work, triggering sharp sell-offs across European data companies and India’s IT sector. The announcement intensified investor fears that advanced AI could erode margins, disrupt business models, and accelerate job losses across white-collar industries.
Anthropic, the company behind the Claude chatbot, said its new legal-focused tool can automate tasks such as contract reviews, non-disclosure agreement triage, compliance workflows, legal briefings, and templated responses. While the company stressed that the system does not provide legal advice and should be reviewed by licensed lawyers, markets reacted swiftly.
European Data Giants See Shares Plunge
Shares in major European publishing and information companies fell sharply following the announcement. UK-based Pearson dropped nearly 8%, while information and analytics giant Relx plunged 14%. Dutch legal software firm Wolters Kluwer slid 13% in Amsterdam, and enterprise software company Sage fell around 10% in London.
The sell-off extended to financial data heavyweights. London Stock Exchange Group shares dropped 13%, Experian declined 7%, and U.S.-listed Thomson Reuters saw its stock sink by roughly 18%. Analysts warned that AI tools like Anthropic’s could reduce demand for traditional data services or even bypass them altogether.
Market analysts described the reaction as a sign of deepening anxiety around AI’s ability to “disintermediate” long-established data providers by offering faster, cheaper automated alternatives.
Indian IT Sector Hit by AI Fears
The shockwaves were not limited to Europe and the U.S. In India, shares of major IT exporters slumped as concerns mounted over AI threatening the country’s labor-intensive outsourcing model. India’s IT index dropped more than 6%, marking its worst session in years.
Industry leaders such as Infosys, TCS, Wipro, and HCLTech all posted steep losses. Analysts warned that as global clients adopt advanced AI tools like Anthropic’s Claude Cowork agent, demand for large offshore development teams could decline, squeezing billable hours and profit margins.
There are also concerns that AI automation could replace routine coding, testing, and support tasks, reducing opportunities for entry-level engineers in India’s massive IT workforce.
Rising Job Loss Concerns
Beyond markets, the development has reignited fears about AI-driven job losses. Legal firms and professional services companies have already begun cutting support roles, citing increased use of AI tools. Studies suggest the UK is losing more jobs than it is creating as companies accelerate AI adoption, particularly in white-collar sectors.
Surveys show more than a quarter of UK workers fear their roles could disappear within five years due to AI, even as businesses report productivity gains from automation. Political leaders have warned that cities heavily reliant on finance, law, consulting, and creative industries are especially exposed.
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A Turning Point for Professional Services?
Founded in 2021 by former OpenAI executives, Anthropic has positioned itself as a major competitor in enterprise AI. Its latest launch, along with additional open-source automation tools for sales and customer support, signals intensifying competition across professional services.
For investors, the message was clear: AI is no longer a distant threat. It is already reshaping industries—and markets are rapidly repricing that reality.
