A sharp selloff in U.S. and European data analytics, professional services and software stocks intensified as investors reacted to new artificial intelligence tools unveiled by Anthropic, which many fear could disrupt long-standing business models. The market downturn followed the launch of new plug-ins for Anthropic’s Claude Cowork agent that automate tasks across legal, sales, marketing and data analysis.
Shares of companies heavily exposed to legal and data services were hit hardest. Thomson Reuters plunged nearly 18%, marking its steepest one-day drop on record, as investors worried that AI-powered legal tools could erode revenues from products such as Westlaw. The company’s shares are now down sharply year to date, reflecting mounting skepticism over its growth outlook.
European peers also suffered heavy losses. Britain’s RELX and the Netherlands’ Wolters Kluwer, both major providers of legal analytics, recorded double-digit declines, underscoring growing anxiety that AI automation could undermine the pricing power of professional services firms. Analysts said investors are rapidly repricing the sector as advances in AI compress the “visibility premium” once enjoyed by software and data companies.
The selloff spread beyond legal analytics into advertising and broader technology stocks, with markets across the U.S., Europe and Asia seeing declines. While some executives and chipmakers have downplayed fears that AI will fully replace software, investors appear increasingly cautious, rotating away from sectors seen as most exposed to rapid automation and disruption.
