"The trigger for the selloff appears to be an updated chatbot release from AI developer Anthropic, the company behind the chatbot Claude, designed to automate legal work such as contract reviewing, non-disclosure agreement triage, compliance workflows, legal briefings and templated responses. The news had an immediate impact in London yesterday, where information and analytics company Relx plunged 14%, UK publishing group Pearson fell by nearly 8%, and the London Stock Exchange Group fell by 13%."
"Last night in New York, Salesforce, Datadog and Adobe lost about 7%, Synopsys and Atlassian fell about 8%, and Intuit slumped 11%, as investors anticipated that their business models could be disrupted by AI. And now the selloff has swept around the globe. Shares of Indian information technology firm bellwether Tata Consultancy Services are down 6.8%, while Infosys has lost more than 8%."
A selloff in software and data company stocks began in Europe and spread to Asia-Pacific markets via losses on Wall Street. Software stocks slid from India to Japan amid concerns that AI could displace existing business models. An updated chatbot from Anthropic, aimed at automating legal and research tasks, precipitated sharp falls in London, including Relx (-14%), Pearson (-nearly 8%) and the London Stock Exchange Group (-13%). US data and software names also tumbled, and the downturn extended to Indian, Chinese and Japanese software firms. Markets had only just recovered from a metals slump before the renewed technology-driven selloff.
Read at www.theguardian.com
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