Software Stocks Crash as Anthropic's New AI Tool Claude Cowork Sparks Automation Fears
Summary
Software stocks crash as Anthropic unveils Claude Cowork, a powerful AI assistant that automates file management and document drafting across multiple industries, sending Thomson Reuters down 15.83% and Legalzoom plummeting 19.68% amid fears that AI automation will devastate traditional software subscription models.
Key Points
- Anthropic launches Claude Cowork, an AI tool that can read files, organize folders, and draft documents, with industry-specific plugins for sales, finance, marketing and legal sectors
- Software stocks plummet with Thomson Reuters dropping 15.83% and Legalzoom falling 19.68% as investors fear AI tools will replace traditional software-as-a-service business models
- Wall Street worries companies using AI to automate tasks will reduce subscriptions to external research and data services, though some analysts believe the sell-off is overblown and sentiment-driven