Explained: Anthropic’s new AI tool that has caused shares of TCS, Infosys and Wipro to crash
Anthropic's new AI tool for legal teams triggered a sell-off of Indian IT stocks like TCS, Infosys, and Wipro, causing market declines.Summary
Shares of major Indian IT companies, including TCS, Infosys, and Wipro, experienced a significant drop following the launch of a new AI tool by US-based Anthropic. This tool, part of the Cowork suite, is designed to assist in-house legal teams with tasks such as contract review and document management. While Anthropic emphasizes that AI-generated analysis should be reviewed by legal professionals, the launch sparked fears about potential job displacement in the IT services sector, as these tasks are traditionally performed by humans. Dr. V K Vijayakumar of Geojit Investments Limited noted that the US IT sell-off would likely impact the Indian IT index, especially given high valuations and a lack of fundamental support for a sustained rally. He also indicated that a monetary stimulus is currently unnecessary, as the economy does not require it.
(Source：THE WEEK)
