European Data Company Shares Fall After Anthropic Launches Anthropic AI legal tool
Anthropic AI legal tool : Shares of several European publishing, data, and software companies dropped sharply after US artificial intelligence startup Anthropic introduced a new tool designed for corporate legal departments.
Anthropic, best known for its Claude chatbot, said the product can automate tasks such as contract reviews, non-disclosure agreement triage, compliance workflows, legal briefings, and templated responses. The announcement triggered concerns among investors about the long-term impact of AI on data-driven businesses.
In London trading, shares of Pearson declined nearly 8%, while information and analytics firm Relx fell 14%. Sage dropped about 10%, and Dutch software group Wolters Kluwer slid 13% in Amsterdam.
Other companies also came under pressure. London Stock Exchange Group shares fell 13%, while Experian dropped 7%. In the US, Nasdaq-listed Thomson Reuters plunged 18%.
Dan Coatsworth, head of markets at AJ Bell, said companies such as Relx, London Stock Exchange Group, Experian, Sage, Informa, and Pearson were hit hard after Anthropic revealed its new product. He warned that tools like these could reduce margins for data providers or potentially remove them from the value chain entirely.
The sell-off weighed on broader markets. The FTSE 100, which had reached a record high earlier in the day, was dragged into negative territory as the declines spread.
Anthropic emphasized that the tool does not offer legal advice, noting that AI-generated analysis should be reviewed by licensed attorneys before being used for legal decisions. The company also announced additional open-source tools aimed at automating tasks in areas such as sales and customer support.
Founded in 2021 by chief executive Dario Amodei and former OpenAI employees, Anthropic has been expanding its presence in professional services automation.
Morgan Stanley analysts said Anthropic’s move into legal applications signaled intensifying competition, which they viewed as a potential negative for established players such as Thomson Reuters.
The sharp declines also hit investors heavily exposed to the sector. UK fund manager Nick Train’s Finsbury Growth & Income Trust fell more than 5%, as its largest holdings include Sage, Experian, London Stock Exchange Group, and Relx.
Train recently apologized for the poor performance of the trust, which is among the worst-performing UK equity income funds over both one- and five-year periods.
The development has renewed concerns about job losses linked to AI adoption. Law firm Clifford Chance said last year it reduced business services staff in London by 10%, citing increased use of AI.
Office-based roles are increasingly seen as vulnerable as AI systems take on cognitive tasks traditionally performed by humans. A Morgan Stanley study found the UK is losing more jobs than it is creating as companies adopt AI, with a larger impact than in other major economies.
A recent survey showed that 27% of UK workers fear their jobs could disappear within five years due to AI. While businesses reported productivity gains of more than 11%, UK firms have created fewer jobs compared with US companies.
London Mayor Sadiq Khan recently warned that AI could eliminate large numbers of jobs in the capital, particularly in finance, creative industries, and professional services. UK technology secretary Liz Kendall has also cautioned that job losses are inevitable, announcing plans to train millions of workers in basic AI skills by 2030.
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