A major shift in artificial intelligence capabilities has triggered turbulence across global equity markets, with technology and IT stocks witnessing heavy selling pressure. The slide followed a key announcement by AI company Anthropic, which unveiled new capabilities for its platform Claude through the launch of the Claude Cowork Agent. The development has sparked what market participants are calling the ‘Anthropic Effect’, reflecting growing investor concern that AI is no longer just a productivity tool but a direct substitute for several established business models.
Anthropic has rolled out 11 new plug-ins for the Claude Cowork Agent, positioning it as a no-code, agentic AI assistant capable of autonomously handling legal, sales, marketing and data analysis tasks with minimal human intervention. The announcement has fundamentally altered investor perception, triggering fears of large-scale disruption across professional services, software platforms and outsourcing-led IT businesses.
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Legal tech stocks take the hardest hit
The sharpest reaction was seen in legal technology and data-driven companies. Claude’s legal agent can independently perform document review, compliance checks and legal drafting at significantly lower costs, directly threatening revenue-heavy workflows in the legal services industry. As a result, LegalZoom shares plunged nearly 20%. Thomson Reuters fell about 15.5%, while RELX declined close to 14%. RELX’s legal data arm LexisNexis, a dominant player in legal research and compliance, was seen as particularly vulnerable to the rapid adoption of agentic AI.
SaaS platforms come under pressure
Concerns quickly spilled over into the enterprise software space. The Claude agent can now integrate directly with internal systems, reducing dependence on traditional SaaS platforms used for workflow automation and customer management. This weighed on Salesforce, whose shares dropped around 6.8%, while ServiceNow slipped nearly 7%. A broad-based sell-off was reported across US and European technology stocks as investors reassessed long-term growth assumptions.
Global tech sell-off intensifies
The fear of AI-driven business model disruption extended across the wider tech universe. PayPal tumbled nearly 20%, Gartner slid about 21%, FactSet fell 10.5%, and Morningstar declined close to 9%. Market participants warned that agentic AI could compress margins and reduce demand for traditional software subscriptions and advisory-led services.
Indian IT stocks also in the firing line
The global rout had a clear spillover effect on Indian IT companies, whose revenues are heavily dependent on outsourcing, back-office operations and contract-based services. Infosys ADRs dropped around 5.5%, while Wipro shares declined about 4.8%. Global IT majors were not spared either, with Accenture sliding roughly 9.5% and Cognizant falling close to 10%.
Fears of a ‘SaaSpocalypse’
Brokerage Jefferies has described the unfolding trend as a potential ‘SaaSpocalypse’, arguing that the narrative around AI is undergoing a fundamental shift. While AI was earlier expected to boost efficiency and billable output for IT and SaaS firms, the new fear is that autonomous AI agents may replace core revenue-generating functions altogether.
Investor takeaway:
Market experts caution that companies dependent on rule-based, repetitive and document-heavy workflows face the highest risk from rapid AI adoption. Conversely, firms that successfully integrate AI into their business models and move up the value chain may still find long-term growth opportunities amid the disruption.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
