Shares in several of Europe’s largest data, publishing, and legal software companies fell sharply after AI company Anthropic launched a new legal productivity tool aimed at in-house legal teams. The announcement unsettled investors who have largely viewed the sector as well-positioned to benefit from AI adoption.
In London, Relx dropped close to 11 per cent, while Pearson fell around four per cent. London Stock Exchange Group and Experian were both down more than seven per cent. Elsewhere in Europe, Wolters Kluwer sank almost nine per cent in Amsterdam.
The market reaction followed the release of Anthropic’s new tool, which is designed to automate tasks such as contract review, non-disclosure agreement triage, compliance checks, and straightforward legal responses. Anthropic stressed that the software does not provide legal advice and said outputs should be reviewed by qualified professionals.
Despite this, the sell-off reflected growing investor concern that legal software platforms and premium data subscriptions could become easier to replace as general-purpose AI tools improve. Analysts have warned that AI models trained on large volumes of public material may increasingly replicate tasks that have traditionally relied on high-margin, proprietary platforms.
According to UBS data, a group of European stocks seen as most exposed to AI disruption fell to record lows this week. The decline also mirrors broader weakness in global software markets, with investor sentiment increasingly shaped by uncertainty around how quickly new AI products will translate into sustainable revenue.
The sell-off also comes amid wider economic concerns. Research from Morgan Stanley suggested the UK is already losing more jobs than it is creating as AI adoption accelerates, with professional services among the sectors most exposed. London mayor Sadiq Khan has also warned that white-collar roles in law, finance, and marketing may be among those most affected.
Source: City AM – https://www.cityam.com/anthropics-new-ai-legal-tool-wipes-billions-off-european-data-stocks/
Disclaimer
This post is a summary of information published by the original source and is shared for informational purposes only. It does not constitute legal advice and should not be taken as an endorsement of any company, product, or service by LegalTechTalk. If you believe any content should be updated or removed, please contact us at [email protected]
