India’s IT stocks slumped on Wednesday, tracking a global tech sell-off after fresh fears that rapid advances in artificial intelligence could upend software business models and accelerate automation across white-collar jobs.
The trigger was a new workplace automation tool unveiled by San Francisco-based AI firm Anthropic, which rattled investors worldwide.
The Nifty IT index fell 5.87 per cent, with all 10 constituents ending in the red.
“Nifty IT slid nearly 6 per cent amid concerns about the growing impact of AI, which intensified following Anthropic’s launch of new workplace tools. This triggered a steep sell-off in US tech stocks with ripple effects across Europe and Asia,” said Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services.
What is the concern?
The upgraded Claude Cowork system, an agentic AI tool from Anthropic, introduces multiple automation plugins that go far beyond simple AI assistance. Instead of merely supporting employees within existing software tools, the AI can now perform end-to-end operational processes. In practical terms, many functions that earlier required separate software subscriptions can now be executed within a single AI-driven environment.
“This is especially worrying for software companies as it has the potential to decimate their models, with AI likely able to fully replace traditional workflow lock-in SaaS products,” Ortus Advisors analyst Andrew Jackson wrote in a note, according to Bloomberg.
Analysts at Jefferies dubbed it a “SaaSpocalypse” for software-as-a-service stocks.