IT stocks lose footing as new AI tools threaten legacy models

IT stocks came under pressure on Wednesday amid a global technology selloff after AI developer Anthropic unveiled new tools that deepened concerns over AI-led disruption.

The Nifty IT index is down 5.37% at 36,538.35, reversing the previous sessions 1.41% gain, as heavy selling gripped frontline technology stocks.

Persistent Systems fell 6.29%, Infosys dropped 6.11%, LTIMindtree declined 6.02% and Coforge slipped 5.72%. Heavyweight Tata Consultancy Services shed 5.41%, while Mphasis lost 4.77%. HCL Technologies fell 4.63%, Tech Mahindra declined 4.39%, Wipro eased 3.78% and Oracle Financial Services Software slipped 3.56%.

Anthropic rolled out new plug-ins for its Claude Cowork agent that can automate tasks spanning legal work, sales, marketing, compliance and data analysis. The move raised fears that AI-powered automation could undermine the business models of established, licence-driven software, analytics and professional services firms.

The move triggered a sharp selloff in U.S. and European data analytics, professional services and software stocks. Investors reassessed the impact of AI on traditional, licence-driven business models.

The launch highlights how fast generative AI is moving up the value chain. It is intensifying pressure on incumbent technology and services firms and raising fresh concerns over long-term revenue disruption.

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