- New AI tools from Anthropic spark billions in losses across software and data companies worldwide.
- Investors react to automation risk, signalling concern over traditional software revenue models.
What happened: Automation shock shakes global markets
Global software and data firms saw significant market value declines after Anthropic released new AI automation tools for its Claude Cowork AI platform. These tools automate tasks including contract review, compliance workflows, legal briefings, and templated responses, raising concerns that traditional software and analytics services could face revenue disruption. RELX, the parent company of LexisNexis, lost nearly £6 billion in market value with a 15 % share decline, while Wolters Kluwer shares fell around 12 %. Analytics providers such as Gartner and S&P Global also dropped sharply, with the London Stock Exchange Group seeing a 10 % decrease.
The sell‑off extended beyond Europe. Business services and software-heavy indices, including the iShares Expanded Tech‑Software ETF, fell 4 % as investors sought to reduce exposure to AI-driven disruption. Analysts emphasised that this reflects a broader risk perception across the software and data sector rather than isolated reactions. The market response underscores the speed at which AI advancements can influence investor behaviour. Moody’s analytics also confirmed significant valuation drops among companies exposed to AI adoption risk.
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Why it’s important
The Anthropic-induced sell-off highlights investor anxiety over AI’s potential to reshape established software, analytics, and professional services revenue models. With AI automating legal document review and compliance tasks, subscription-based services and proprietary databases face structural challenges. Investors are pricing in long-term disruption, prompting companies to consider accelerated AI adoption to maintain competitiveness.
This event also illustrates broader market sensitivity to AI innovation. ETFs and indices with software-heavy exposure reacted sharply, signalling that AI risk is now embedded in capital allocation decisions. Companies like RELX and Gartner must integrate AI strategically, either to augment existing services or to create new, AI-driven revenue streams.
Moreover, the episode emphasises operational risk. Rapid AI deployment can expose cybersecurity and compliance gaps, highlighting the need for careful implementation. In the long term, firms that balance automation with strategic service innovation may secure investor confidence and sustainable growth. Anthropic’s tools serve as a reminder that AI is both an opportunity and a disruptor in the global software industry.
