New AI tools raise concerns about future of software and IT services
Indian IT stocks fell sharply in early trade on Wednesday, pulling the Sensex down by over 100 points. The fall came after a heavy selloff in US technology stocks, triggered by growing worries over Anthropic AI and its new workplace automation tools.
The Nifty IT index was down around 3% at the opening bell. Major IT companies saw heavy losses. Infosys fell by about 8%, TCS dropped 6%, Tech Mahindra also slipped 6%, HCLTech went down 5%, and Wipro lost around 4%.
Why Anthropic AI Is Causing Market Panic
The sharp fall in IT stocks happened after Anthropic AI, a US-based artificial intelligence company, made an important announcement about its new AI tools. The company launched new AI tools that can perform office tasks such as data analysis, legal work, sales support, and marketing—jobs that are usually handled by people or traditional software.
This raised fears among investors that AI may reduce the need for many software platforms and IT services in the future.
New AI Tools Could Replace Traditional Software
Anthropic AI introduced 11 new plugins for its Claude AI agent. These tools can complete tasks directly, without depending on popular business software like Salesforce or ServiceNow.
This news made investors nervous because it suggests that companies may depend less on traditional software services in the coming days. Some experts say this could lead to a “SaaSpocalypse,” meaning a big risk for software companies and their future growths.
US Tech Stocks Fall, Global Markets React
The impact was felt strongly on Wall Street. US stock markets ended the day in the red. The S&P 500 slipped by around 0.84%, while the Nasdaq Composite fell a sharper 1.43%. Big tech stocks were under pressure, with Microsoft and Meta losing over 2% each. Chip giant Nvidia also saw its share price drop by nearly 3%.
Software companies like Salesforce and ServiceNow also saw heavy losses falling close to 7%.
Indian IT Companies Face Growing Risk
Indian IT companies rely mainly on services like customer support, data handling, compliance checking, and contract review. These services are now at risk as new AI tools are able to do many of these tasks automatically. These are the same areas where Anthropic AI is offering automation tools.
The Economic Survey 2025–26 had earlier warned that rapid growth of AI could hurt India’s IT sector if companies fail to adapt quickly. It pointed out that AI power is concentrated among a few global players, which could reduce demand for outsourced IT work from India.
AI Seen as Both Opportunity and Threat
For the last few years, AI was seen as a big chance for growth. Technology companies spent a lot of money on AI training and new AI products. Investors also trusted AI-based companies, which helped their share prices go up.
Now, the mood has changed. Many investors think Anthropic AI’s advanced tools could replace normal software and IT services, not just help them.
What Happens Next?
It is still unclear whether this selloff is a short-term market reaction or a sign of deeper problems for the IT industry. However, one thing is clear—the discussion around AI has shifted.
As AI tools become more powerful, Indian IT companies may need to rethink their business models to stay competitive in a rapidly changing technology landscape.
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