Anthropic Just Sent Shockwaves Through the Entire Stock Market by Releasing a New AI Tool

"Last week, Anthropic released a new AI tool for automating legal work, precipitating a mass stock market selloff over fears that the tech could upend huge software customers in industries ranging from law to finance, Reuters reports - an urgent example of the power that AI currently has over financial markets and even the economy writ large. The S&P 500 software and services index fell by nearly nine percent over five trading sessions, and is down over 20 percent from its October peak following the release of the AI tool. The Nasdaq 100 Index is similarly despondent, down by around 2.6 percent. Thomson Reuters, Reuters' parent company which operates a large legal division, saw its stock plunge by over 20 percent over five days. Both the SaaS heavyweight Salesforce and the global cloud-based cybersecurity firm Crowdstrike fell by around percent, but eased on Wednesday."

""We are not yet at the point where AI agents will destroy software companies, especially given concerns around security, data ownership and use," Ben Barringer, head of technology research at Quilter Cheviot, told Reuters,"

"The buzz centers on a new plugin for Anthropic's Claude Cowork AI agent, which was released last month. Simply titled "Legal," Anthropic says it can speed up and even automate contract review, non-disclosure agreement triage, and compliance workflows - "all configurable to your organization's playbook and risk tolerances." Of course, none of what it produces should be construed as legal advice: "All outputs should be reviewed by licensed attorneys," Anthropic cautions."

Anthropic released an AI plugin for its Claude Cowork agent that automates contract review, NDA triage, and compliance workflows, configurable to organizational playbooks and risk tolerances. The S&P 500 software and services index fell nearly nine percent over five trading sessions and sits over 20 percent below its October peak; the Nasdaq 100 declined about 2.6 percent. Thomson Reuters shares plunged more than 20 percent over five days, while major SaaS and cybersecurity firms also declined before easing. Analysts and market participants expressed concern about AI-driven disruption but noted security, data ownership, and usage limitations, and Anthropic cautioned that outputs require attorney review.

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