Software Stocks Ditched on Fears AI Will Gut Industry
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Shares of legal software firms and other data service companies plunged on Tuesday after Anthropic released a new artificial intelligence automation tool.
Photographer: Gabby Jones/Bloomberg
Wall Street sentiment around software stocks went from bearish to doomsday with traders dumping shares as fears pile up about the potential destruction coming via artificial intelligence.
The anxiety was underscored Tuesday after AI firm Anthropic released a productivity tool for in-house lawyers, sending legal software and publishing firms tumbling. Selling pressure was evident across the sector with London Stock Exchange Group falling 13%, while Thomson Reuters plunged as much as 21%. CS Disco sank as much as 14% and Legalzoom.com declined 19%.