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The software sector faced renewed market concerns this week after artificial intelligence company Anthropic released new AI tools, triggering a sell-off in software-as-a-service and data provider stocks.
Anthropic’s new AI tools, built for its Claude “Cowork” AI agent, are designed to handle complex professional workflows that many software and data providers sell as core products.
The tools and other similar AI agents target functions ranging from legal and technology research, customer relationship management and analytics. That has raised concerns that AI could undercut traditional software business models.
The S&P 500 Software & Services Index, which has 140 constituents, fell over 4% on Thursday, extending its losing streak to eight sessions. The index is down about 20% so far this year.
