Mumbai, February 5: A significant sell-off hit global technology markets on Wednesday as investors reacted to Anthropic’s launch of Claude Cowork, a new agentic AI platform. The announcement, which included 11 specialised plugins designed to automate professional tasks, wiped approximately USD 285 billion off the valuation of software, legal technology, and professional services firms in a single trading session.

The market reaction, dubbed the “SaaSpocalypse” by investment bank Jefferies, reflects growing fears that autonomous AI agents are evolving from productivity tools into direct competitors for established Software-as-a-Service providers. In India, the impact was particularly severe, with the Nifty IT index plunging nearly 6 per cent, marking its steepest single-day decline since 2022. Anthropic Mocks ChatGPT Ads in Super Bowl Commercial, Rejects AI Advertising in Its Claude Model.

Claude Cowork and the Rise of Agentic AI

Claude Cowork represents a shift from generative chat to agentic execution. Unlike standard chatbots, Cowork allows the Claude AI to access specific local folders on a user’s computer to read, edit, and organise files autonomously. The system is designed to act as a digital colleague that can handle multi-step workflows such as sorting messy data, drafting reports from scattered notes, and processing expense spreadsheets without constant human prompting.

Anthropic has strengthened this capability with 11 open-source plugins targeting high-value sectors such as legal, sales, marketing, and data analysis. These tools are designed to perform end-to-end tasks that were previously the core business of platforms like Salesforce, ServiceNow, and Thomson Reuters. For example, the legal plugin can triage NDAs and track compliance, while the data analyst plugin can process large datasets at a fraction of the cost of traditional consulting.

SaaSpocalypse Market Crash

The scale of the SaaSpocalypse was felt most acutely by companies whose revenue models rely on per-seat licensing. Investors are concerned that if one AI agent can perform the work of multiple junior employees, the total number of paid software seats across enterprises will shrink. On Wall Street, SaaS leaders such as Salesforce and ServiceNow saw shares drop by roughly 7 per cent, while legal information provider Thomson Reuters recorded a 16 per cent slump.

In the Indian market, major IT firms including TCS, Infosys, Wipro, and HCL Technologies saw their valuations erode by nearly INR 2 lakh crore in a single day. Analysts suggest that Indian IT exporters are particularly vulnerable because their business models are heavily tied to billable hours for data and back-office services, precisely the functions these new AI plugins are designed to automate.

Impact on Software and IT Services

Despite the panic, some industry leaders have pushed back against the existential threat narrative. Tech Mahindra CEO Mohit Joshi described the market reaction as a significant overreaction, arguing that every major technology shift has historically acted as a tailwind for the services industry. He noted that while AI can automate simple tasks, integrating AI into complex legacy corporate environments still requires substantial human oversight and service-provider expertise.

Anthropic, currently seeking a valuation of USD 350 billion, maintains that its goal is to empower a new generation of AI-native companies rather than destroy the existing ecosystem. However, with Cowork currently available as a research preview for Claude Max subscribers on macOS, the immediate focus for investors remains on the structural repricing of the software sector. Why IT Stocks Are Down Today? Infosys, TCS and Wipro Shares Plummet as Anthropic’s New AI Tools Spark Automation Fears.

Anthropic Claude Cowork Features

Looking ahead, the shift towards software as a worker rather than a tool is expected to force a fundamental re-engineering of business models. Companies that merely provide user interfaces for data entry are viewed as high risk, while those that own proprietary data moats or deliver high-trust advisory services may survive the transition. As AI agents gain more autonomy, the industry is bracing for further volatility as clients reassess their long-term software and outsourcing commitments.

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(The above story first appeared on LatestLY on Feb 05, 2026 11:30 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).