Anthropic's New Legal AI Sends Shockwaves Through European Markets

A new artificial intelligence tool designed for corporate legal departments triggered a significant sell-off of European data and publishing stocks on Tuesday. The tool, launched by U.S.-based AI firm Anthropic, automates tasks like contract review, compliance checks, and drafting standard legal documents.

The market reaction was swift and severe. Shares in the analytics giant Relx dropped 14%, while Dutch professional publisher Wolters Kluwer fell 10.5%. In London, the London Stock Exchange Group saw its steepest single-day decline in nearly five years, falling 8.5%. The credit agency Experian dropped 8.9%, and publisher Pearson slid 4%. The broader European media sector was on track for its worst day since March 2020.

The declines delivered a fresh blow to prominent fund manager Nick Train, whose Finsbury Growth & Income Trust holds large stakes in several affected companies. The trust's shares fell more than 5%. Train recently apologized for the fund's 'dire' performance at its annual meeting.

Anthropic, founded by former OpenAI staff, stressed its tool does not provide legal advice and that outputs should be reviewed by licensed attorneys. However, analysts from Morgan Stanley noted the launch 'heightens competition' in the sector.

The event has intensified concerns about AI-driven job displacement, particularly in white-collar professions. A recent Morgan Stanley study suggests the UK is losing more jobs than it creates due to AI adoption, with over a quarter of workers fearing for their roles within five years. While businesses report productivity gains, the political focus has shifted to retraining. Technology Secretary Liz Kendall has warned that 'some jobs will go,' outlining plans to train millions of workers in basic AI skills by 2030.

Source: The Guardian