SaaSapocalypse: Anthropic's AI Agents Spark Panic Over Future Of Indian IT Services

Global tech and IT stocks fell sharply this week after the US artificial intelligence company Anthropic released a set of new tools that can automate business tasks, prompting investor fears that AI may replace traditional software and services. Analysts and traders have described the market reaction as a "SaaSpocalypse," meaning a severe downturn for software-as-a-service (SaaS) companies. 

Anthropic's new offering, built on its Claude Cowork platform, includes 11 plugins designed to automate tasks such as legal document review, compliance, sales workflows, marketing support and data analysis. Some investors worry these tools could reduce demand for services provided by large software firms and IT outsourcing companies. 

The market sell-off spread across global markets. In the United States and Europe, shares in software, legal-tech and data companies declined sharply. Firms such as Pearson, Relx and Sage saw significant drops in their share prices following the news. 

The impact was also felt in India. Major Indian IT stocks fell as markets opened on Wednesday, dragging down the NIFTY IT index by around 6 per cent - its steepest drop in several years. Shares of companies including Infosys, Tata Consultancy Services (TCS), Wipro, HCLTech and LTIMindtree slipped between about 4 and 7 per cent, as investors reassessed the threat that advanced AI tools pose to traditional service business models. 

Market analysts say fears about automation overtaking established SaaS revenue streams and labour-intensive IT work are behind the rapid sell-off, amid broader concern over how artificial intelligence will change the global technology sector.

What Does The Anthropic's New Tool Do?

Anthropic's latest AI offering, Claude Cowork, is designed to automate a wide range of professional tasks that were earlier handled by specialised software and human teams. At its core is the Claude Legal agent, which assists with document review, compliance checks and drafting legal briefs, while requiring final review by licensed lawyers.

Beyond legal work, Claude Cowork supports multiple plugins for productivity, product management, marketing, finance and data analysis. The tools can plan workflows, create content, analyse datasets, streamline financial processes and search across enterprise systems, signalling a broader shift in how businesses use AI to manage everyday operations.

(With inputs from agencies)