Anthropic’s AI Tool Launch Hits Indian IT Market
The introduction of a new AI tool for corporate legal teams was released by US AI firm, Anthropic, which toppled the global stock market. European legal software companies, US technology firms and Indian IT stocks have been sold-off since the last week of announcement.
What is the Claude CoWork?
Anthropic says that the new AI tool-Claude CoWork, is designed to burden down the legal activities such as the regular legal framework which includes contract checks, non-disclosure agreement reviews, legal summaries and draft tasks. It functions like a plugin for in-house legal teams as it is part of the company’s AI assistant Claude.
The company said although the AI tool is made to use for routine work it does not allow it to give legal advice and have asked lawyers to review AI generated content before use.
Investors have strong opinions with regards to the AI tool as they believe the traditional legal research software and service might come in danger.
Also read : Taiwanese Chipmaker Foxconn Faces Tax, Norms Row In Devanahalli; Gram Panchayat Issues Notice
Reactions From Legal Software Firms
The shares of European legal and publishing firms like RELX PIc, Wolters Kluwer NV fell by almost 10 % even Pearson PIc dipped down in trading as soon as the AI tool was launched by GitHub.
10 % shares of PayPal, Expedia Group, EPAM Systems, Equifax, and Intuit while more than 12 % shares of Thomson Reuters, LegalZoom, and London Stock Exchange Group fell indicating massive impact on software sectors across US companies. Moreover, nearly $300 billion hit is borne by two S&P indices tracking software, financial data, and exchange-related stocks.
US markets reacted overnight but Indian markets experienced this tremor by Wednesday morning. Nearly 6% shares of Infosys, Tata Consultancy Services, HCLTech, Tech Mahindra, and Wipro dropped sharply.
Indian IT Response
The pressure felt by the rest of the markets were seen high in comparison to that of Indian IT sectors as the investors here are willing to adapt to the AI era but at adjustable risk. With time, many firms here are already investing in cloud computing, automation and AI led industry.