The launch of a new artificial intelligence tool by Anthropic has sent shockwaves through European financial markets, triggering sharp declines in share prices for major data services firms and reigniting deep-seated fears about widespread job losses caused by the AI boom.
Market Turmoil Hits European Data Giants
European publishing and legal software companies experienced significant stock market turbulence following Anthropic's announcement of its latest AI innovation designed specifically for in-house legal teams. The UK publishing powerhouse Pearson saw its shares tumble by 4%, while information and analytics specialist Relx plunged nearly 11% on the London Stock Exchange. Across the channel in Amsterdam, Dutch software company Wolters Kluwer dropped almost 9% in value.
Further market instability affected the London Stock Exchange Group itself, with shares falling by more than 7%, alongside similar declines for credit reporting giant Experian. This collective market reaction reflects growing investor anxiety about artificial intelligence's disruptive potential within data-intensive industries that have traditionally relied on human expertise.
Anthropic's Legal Automation Tool
Anthropic, the company behind the increasingly popular Claude chatbot, revealed that its new tool can automate numerous legal functions including contract review processes, non-disclosure agreement triage systems, compliance workflow management, legal briefing preparation, and templated response generation. The company emphasised that the plugin does not constitute legal advice provision, stating clearly that "AI-generated analysis should be reviewed by licensed attorneys before being relied upon for legal decisions."
Alongside this legal-focused innovation, Anthropic unveiled several other open-source tools designed to automate various professional activities spanning sales operations and customer support functions, indicating a broader strategy of workplace automation across multiple sectors.
UK Job Market Under Particular Pressure
The announcement has intensified existing concerns about AI-driven employment displacement, with the United Kingdom appearing particularly vulnerable according to recent economic analyses. A comprehensive study conducted by investment bank Morgan Stanley reveals that the UK is losing more jobs than it creates as businesses increasingly adopt AI technologies, suffering more severe impacts than comparable large economies.
Recent survey data examining thousands of employees indicates that more than a quarter (27%) of UK workers fear their positions could disappear within the next five years due to artificial intelligence advancements. Paradoxically, the same research found British businesses reporting average productivity increases of 11.5% through AI implementation, with American companies achieving similar efficiency gains while managing to create more employment opportunities than they eliminated.
London's Vulnerability to AI Disruption
In his recent annual Mansion House address, London Mayor Sadiq Khan highlighted the capital's particular exposure to AI-induced job losses, warning that artificial intelligence could destroy substantial employment sectors throughout the city. Mayor Khan identified London as being "at the sharpest edge of change" due to its heavy reliance on white-collar professionals within finance, creative industries, and professional services including legal practices, accounting firms, consulting agencies, and marketing departments.
Anthropic, founded in 2021 by chief executive Dario Amodei alongside other former OpenAI staff members responsible for developing ChatGPT, continues to expand its influence within the rapidly evolving artificial intelligence landscape, prompting both technological excitement and economic apprehension across global markets.
