Software Stocks Drop on Report Amazon Is Developing AI Tools

Software stocks dropped on Tuesday after a report on new AI tools from Amazon.com Inc. rekindled the disruption fears that have roiled the sector in the past few months.

Amazon’s cloud-computing arm, Amazon Web Services, is developing an AI agent to automate some of functions for sales, business development and other groups that have been targeted in the tech giant’s sweeping job cuts, the Information reported, citing people familiar with the matter. The agent being developed by AWS handles some of the workload of thousands of technical specialists in areas like cybersecurity and server networking, according to the report.