- Shares of Infosys and Wipro fell over 5% after Anthropic launched a new AI tool
- Anthropic's AI tool automates contract review and legal briefings, raising concerns
- Accenture and Cognizant stocks dropped 9%, while other data firms fell over 10%
New York-listed shares of leading Indian information technology giants Infosys Ltd. and Wipro Ltd. fell over 5% after Anthropic released a new AI automation tool that investors worry could eat into much of their core businesses.
Anthropic on Tuesday released new AI automation tool and this has created fear that it could eat into the core businesses of data & information services firms. Anthropic included a legal tool on its website that it says it can automate work like contract reviewing and legal briefings. “All outputs should be reviewed by licensed attorneys,” according to the website.
The American Depository Receipt (ADR) is a tool for multinationals/foreign companies (primarily based outside the US) or organisations to trade on US stock markets, just like regular shares of US companies.
In theory, an ADR is similar to a special certificate issued by a US bank. It is a negotiable certificate representing shares in a foreign company traded on US stock exchanges.
This comes as Accenture and Cognizant stocks fell 9% on Tuesday. In addition, RELX Plc and Wolters Kluwer NV, both providers of professional analytics, fell over 10%. Experian Plc slid 9.0% while financial data provider London Stock Exchange Group Plc. Thomson Reuters Corp., Legalzoom.com Inc. and FactSet Research Systems Inc. all were down around 10% or more.
The iShares Expanded Tech-Software Sector ETF fell as much as 4.4%, while a UBS Group AG basket of European stocks deemed at risk of AI disruption fell nearly 7%.
Anthropic is part of a rash of AI startups developing tools for the legal industry. Investors have been pouring money into AI products for the legal industry for more than two years now. However with the new entry other AI companies might get affected.
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