European publishing and legal software companies saw steep declines in share prices after US AI startup Anthropic unveiled a tool for corporate legal teams. The AI tool, developed by Anthropic—the company behind the Claude chatbot—can automate tasks like reviewing contracts, triaging non-disclosure agreements, managing compliance workflows, preparing legal briefings, and generating templated responses. Following the announcement, UK publishing group Pearson dropped nearly 8%, while information and analytics company Relx fell 14%. London-based software company Sage lost 10%, and Dutch software firm Wolters Kluwer declined 13%. Shares of the London Stock Exchange Group fell 13%, and credit reporting company Experian dropped 7%. In the US, Nasdaq-listed Thomson Reuters shares plunged 18%. Dan Coatsworth, head of markets at AJ Bell, explained that the declines reflect investor worries about AI reducing profit margins for data-driven companies or even displacing them entirely. “The emergence of tools like Anthropic’s could reduce margins or remove these companies as providers,” he said. The FTSE 100 initially hit a record high on Tuesday morning but slipped into the red amid the sell-off. Anthropic stressed that the AI tool does not provide legal advice. “AI-generated analysis should be reviewed by licensed attorneys before being relied upon for legal decisions,” the company said. It also introduced other open-source tools designed to automate professional tasks in sales and customer support. Founded in 2021 by CEO Dario Amodei and other former OpenAI staff, Anthropic has positioned itself as a major player in AI-driven enterprise solutions. Morgan Stanley analysts noted that the expansion of Anthropic’s Cowork tool into legal services increases competition and poses potential challenges for companies like Thomson Reuters. The share price drops also impacted prominent UK fund manager Nick Train, whose Finsbury Growth & Income Trust holds Sage, Experian, London Stock Exchange, and Relx as its four largest investments. The trust fell more than 5% on Tuesday. Train had previously acknowledged the fund’s “dire” performance at its annual meeting after surviving a vote on its future. The news raises fresh concerns over AI-related job losses. Clifford Chance, a leading international law firm, announced in November it would cut 10% of its London business services staff due in part to AI adoption. Office-based roles, along with factory positions, are increasingly vulnerable to automation as AI systems handle cognitive tasks traditionally performed by humans. A Morgan Stanley study found the UK is experiencing more job losses than job creation as AI tools become widespread, hitting white-collar sectors particularly hard. Recent surveys show that 27% of UK workers fear their roles could disappear within five years due to AI. Despite this, companies report productivity gains averaging 11.5% from AI adoption. US firms report similar productivity improvements but have created more jobs than they eliminated. London Mayor Sadiq Khan warned last month that AI could destroy significant numbers of jobs in the capital, which relies heavily on finance, creative industries, and professional services like law, accounting, consulting, and marketing. Technology Secretary Liz Kendall has also cautioned that “some jobs will go” and announced plans to train up to 10 million UK workers in basic AI skills by 2030. As AI tools like Anthropic’s expand, investors and policymakers are grappling with both the opportunities and risks for business efficiency, market competition, and employment.