Global software stocks came under renewed pressure on Wednesday as a sharp selloff spread from Europe and the United States into Asia, driven by growing fears that rapid advances in artificial intelligence could undermine long-established business models.
European data analytics, professional services, and software shares fell for a second straight session, mirroring declines elsewhere. The weakness followed fresh concerns sparked by Anthropic’s latest AI developments, which highlighted how quickly automation could disrupt sectors once seen as relatively insulated.
In Europe, London Stock Exchange Group shares slid nearly 7%, extending a steep drop from the previous session. Asian markets also felt the strain, with Indian IT exporters tumbling and Japanese software and systems developers posting losses of up to 11%, dragging regional benchmarks lower.
The selloff has revived broader anxieties about a potential technology bubble, with some investors questioning whether valuations properly reflect the long-term risks posed by AI-driven disruption across software and IT services.
Analysts say sentiment has shifted decisively. Investors are now focused on structural growth challenges that extend well beyond traditional forecasting horizons, with concerns mounting over competition from AI-native firms and clients increasingly building solutions in-house.
A key catalyst was Anthropic’s recent launch of new AI agent capabilities, enabling automated tasks across legal, sales, marketing, and data analysis. The move intensified fears that large swathes of white-collar software demand could be reshaped faster than expected.
Advertising and enterprise software stocks—viewed as among the most exposed—remained under pressure, while Europe’s largest software names also slid following recent guidance disappointments that erased billions in market value.
With AI leaders and chipmakers powering U.S. indices to record highs, regulators have warned of financial stability risks tied to uneven AI adoption. For now, uncertainty around what AI agents can truly replace is keeping investors cautious—and largely on the sidelines.
