Anthropic, the AI firm behind the Claude chatbot, sparked an unexpected sell-off across software and publishing stocks with the launch of a new tool that is linked with the legal industry.
Anthropic has recently rolled out a new plug-in for its Claude Cowork AI agent, capable of automating clerical work such as compliance tracking and legal document review.
What looks like a precented advancement in the AI race, investors believe it as a game-changer, and not in a good way.
The AI firm behind the Claude chatbot sparked an unexpected sell-off across software and publishing stocks with links to the legal industry. Investors, already wary of how fast AI is
reshaping white-collar professions, have reacted sharply, and the fallout suggests the market may still be underestimating the scope of AI’s disruption.
Anthropic’s new tool, part of its Cowork capabilities, is aimed squarely at legal professionals. According to the company’s plugin documentation, it can review contracts, summarise legal briefs, and check compliance workflows, though Anthropic emphasises that all outputs should still be reviewed by qualified attorneys.
“All outputs should be reviewed by licensed attorneys,” according to the website.
A previous Anthropic update in January, the launch of its Claude Cowork tool, had already heightened investor anxiety, with traders closely watching how AI could threaten traditional software businesses.
The recent wave of concern has been amplified by other tech releases to. Video game stocks tumbled last week after Alphabet Inc. began rolling out Project Genie, a tool capable of building immersive digital worlds from simple text or image prompts.
The sell-off began even before US markets opened, with traders citing an update on Anthropic’s website as the trigger for sharp declines in the shares of credit and marketing firm Experian Plc, business and legal software provider RELX Plc, and London Stock Exchange Group Plc.
Stocks tied to the legal sector, including LegalZoom, RELX, and Reuters, have fallen at least 20 per cent since the start of 2026.
LegalZoom, which operates exclusively in the legal services industry, helps users navigate routine legal tasks via online guides and access to independent lawyers. RELX, the British IT conglomerate, owns LexisNexis, one of the world’s largest legal data platforms. Reuters’s exposure comes through its ownership of Westlaw, another legal research mainstay.
According to Bloomberg data, just 71 per cent of software companies in the S&P 500 have beaten revenue expectations so far this earnings season, compared with 85 per cent across the broader tech sector, a sign that investor nerves are fraying.
Famed short-seller Andrew Left told Business Insider last year that he had used Claude himself for legal research tied to an upcoming case, describing it as “the most reliable assistant I’ve ever had.” That endorsement, it seems, has now been taken literally by the markets.
End of Article