Global software stocks came under heavy pressure as investors reacted to fresh signs that advances in artificial intelligence could rapidly undermine traditional business models. Shares across Europe and the United States fell for a second session, with losses spreading into Asia, after new AI capabilities from Anthropic intensified concerns over sector-wide disruption.
The selloff was triggered by Anthropic’s launch of new plug-ins for its Claude Cowork agent, which automate tasks across legal work, marketing, sales and data analysis. Investors fear such tools could erode the pricing power of software companies whose revenues rely on routine, repeatable services. Analysts said the pace of AI development is clouding visibility beyond typical three-to-five-year business forecasts, making valuations harder to justify.
In Europe, legal and data analytics providers were hit hardest. Britain’s RELX and the Netherlands’ Wolters Kluwer suffered sharp declines, while shares in SAP slid again following a recent weak cloud outlook. U.S.-listed software firms also struggled after days of losses, with some of the biggest names still under pressure in premarket trading.
The downturn extended to Asia, where Japanese and Indian technology stocks posted steep declines. Market participants said investors are increasingly rotating toward chipmakers and infrastructure providers that benefit directly from AI spending, while avoiding software companies viewed as vulnerable to automation. The episode underscores growing anxiety that AI-native tools could rewrite the economics of large parts of the global software industry.
