AI legal tool rattles European data stocks
Analysts warned that AI-driven automation may intensify competition and weaken pricing power across data-heavy legal and financial businesses.
European data and legal software stocks fell sharply after US AI startup Anthropic launched a new tool for corporate legal teams. The company said the software can automate contract reviews, compliance workflows, and document triage, while clarifying that it does not offer legal advice.
Investors reacted swiftly, sending shares in Pearson, RELX, Sage, Wolters Kluwer, London Stock Exchange Group, and Experian sharply lower. Thomson Reuters also suffered a steep decline, reflecting concern that AI tools could erode demand for traditional data-driven services.
Market commentators warned that broader adoption of AI in professional services could compress margins or bypass established providers altogether. Morgan Stanley flagged intensifying competition, while AJ Bell pointed to rising investor anxiety across the sector.
The sell-off also revived debate over AI’s impact on employment, particularly in legal and other office-based roles. Recent studies suggest the UK may face greater disruption than other large economies as companies adopt AI tools, even as productivity gains continue to rise.
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