The launch of a new artificial intelligence legal tool by the US firm Anthropic has sent shockwaves through European financial markets, triggering significant share price declines for major data services and publishing companies. This development has also reignited widespread fears about potential job losses caused by the accelerating AI boom, with particular concerns focused on the United Kingdom's economy.
Market Reaction to Anthropic's Announcement
Following Anthropic's announcement of its AI tool designed for in-house legal teams, several prominent European firms experienced sharp drops in their stock values. On the London Stock Exchange, shares in the UK publishing group Pearson fell by 4%, while information and analytics giant Relx plunged nearly 11%. The London Stock Exchange Group itself saw its stocks decline by more than 7%, as did the credit reporting company Experian.
Across the Channel in Amsterdam, shares in the Dutch software company Wolters Kluwer dropped almost 9%. These substantial market movements reflect growing investor anxiety about the disruptive impact of artificial intelligence on traditional data and professional services companies.
Capabilities and Limitations of the New AI Tool
Anthropic, the company behind the popular Claude chatbot, revealed that its new legal tool can automate various professional tasks including contract reviewing, non-disclosure agreement triage, compliance workflows, legal briefings, and templated responses. The company emphasized that the plugin does not provide actual legal advice, stating clearly that "AI-generated analysis should be reviewed by licensed attorneys before being relied upon for legal decisions."
Alongside this legal tool, Anthropic unveiled several other open-source tools aimed at automating professional activities in sales and customer support sectors, indicating a broader strategy to penetrate multiple professional service markets.
Renewed Concerns About AI-Driven Job Displacement
The announcement has brought job security concerns back to the forefront of economic discussions. According to a recent study by investment bank Morgan Stanley, the UK is losing more jobs than it is creating as companies increasingly adopt AI tools, with Britain being hit harder than other major economies by this technological shift.
A survey of thousands of employees revealed that more than a quarter (27%) of UK workers fear their jobs could disappear within the next five years due to AI advancements. Interestingly, the same research found that British businesses reported an average 11.5% increase in productivity aided by AI implementation. While US businesses reported similar productivity gains, they managed to create more jobs than they eliminated, highlighting a concerning disparity for the UK labor market.
London's Particular Vulnerability
In his annual Mansion House speech last month, London Mayor Sadiq Khan warned that AI could destroy swathes of jobs in the capital. He noted that London finds itself "at the sharpest edge of change" due to its heavy reliance on white-collar workers across finance, creative industries, and professional services including law, accounting, consulting, and marketing.
This concentration of professional service roles makes London particularly vulnerable to automation technologies that target precisely these knowledge-based occupations.
Background on Anthropic
Anthropic was founded in 2021 by Dario Amodei, who serves as chief executive, along with other former staff members from OpenAI, the company that developed the groundbreaking ChatGPT. The firm's rapid development and market impact underscore the accelerating pace of innovation in the artificial intelligence sector and its growing influence across traditional industries.
