Anthropic AI Shock Triggers Global Tech Stock Plunge as AI Disruption Hits Software Industry

The release of new enterprise artificial intelligence tools by Anthropic has caused a sharp global market reaction, erasing billions of dollars from the value of established software and IT services companies. This AI shock has sparked widespread investor panic, driven by fears that generative AI platforms will automate key tasks and disrupt traditional business models across the technology sector.

The sell-off began on Wall Street and quickly spread worldwide. In Europe, major providers of data analytics and legal information, such as RELX and Wolters Kluwer, saw their stock prices fall sharply. The parent company of Reuters News experienced a historic single-day drop due to concerns that AI could threaten its legal division. The decline also affected advertising firms like Publicis and WPP, with European software giant SAP also suffering significant losses.

Asian markets were similarly impacted, especially India's main IT outsourcing sector. Stocks for major firms like Infosys and Tata Consultancy Services fell sharply at the start of trading. The worry is that AI automation of document processing, compliance checks, and data analysis directly threatens the labour-intensive, back-office roles that underpin the outsourcing industry. Japanese software developers, including NEC and Fujitsu, also saw steep declines.

Analysts describe this as a fundamental market revaluation. The rapid development of AI capabilities has created deep uncertainty about the long-term future of companies whose services are now vulnerable to automation. Investors are hurriedly adjusting their portfolios, with one major bank analyst remarking that the sector is being "sentenced before trial." Although some industry leaders, such as Nvidia's CEO, argue that AI will not replace software ecosystems, the market is signalling a crucial moment of disruption for white-collar work and the global tech landscape.