Times of IndiaExplained: What is Anthropic's AI tool that wiped $285 billion off software stocks in a single day
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Investors were assessing on Wednesday whether a selloff in global software stocks this week had gone too far, as they weighed if businesses could survive an existential threat posed by AI. The answer: It's unclear and will lead to volatility. From a report: After a broad selloff on Tuesday that saw the S&P 500 software and services index fall nearly 4%, the sector slipped another 1% on Wednesday. While software stocks have been under pressure in recent months as AI has gone from being a tailwind for many of these companies to investors worrying about the disruption it will cause to some sectors, the latest selloff was triggered by a new legal tool from Anthropic's Claude large language model (LLM). The tool - a plug-in for Claude's agent for tasks across legal, sales, marketing and data analysis - underscored the push by LLMs into the so-called "application layer," where these firms are increasingly muscling into lucrative enterprise businesses for revenue they need to fund massive investments. If successful, investors worry, it could wreak havoc across a range of industries, from finance to law and coding. Read more of this story at Slashdot.
Top stories - Google NewsAnthropic's latest plugin can field clerical tasks for legal professionals. It's unveiling sparked a big sell-off in legal software stocks on Tuesday.
New tools by artificial intelligence companies like Anthropic have reignited worries that businesses will pare down their subscriptions to software services.