A selloff in European and North American software, data analytics and advertising stocks deepened on Tuesday after new artificial intelligence models raised concerns over the \u200dpotential \u200bimpact on sectors once seen as AI beneficiaries.<\/p>\n
One catalyst was the launch of Anthropic\u2019s legal plug-in for its Claude generative AI chatbot, according to traders and analysts.<\/p>\n
The move sent Britain\u2019s RELX and the Netherlands\u2019 Wolters Kluwer, both providers of legal analytics services, down as much as 17 per cent and 13 per cent respectively. Toronto-based Thomson Reuters (TRI-T<\/a>, TRI-Q<\/a>), which owns the Westlaw legal database, \u2060fell over 14 per cent.<\/p>\n \u201cThe software companies were assumed to be winners from AI,\u201d said Lars Skovgaard, senior investment strategist at Danske Bank. \u201cBut all of a sudden, you start to worry about whether you can earn the money back (from your AI investments), and\/or will you be outsmarted by updates coming in.\u201d<\/p>\n RELX shares have now almost halved from their \u200cpeak last February and on Tuesday \u200dwere set for their biggest drop since 1988. Its dramatic reversal highlights the pressure AI \u200dis exerting on Europe\u2019s software sector.<\/p>\n Germany\u2019s SAP, which less than \u200ca year ago was Europe\u2019s most valuable company, slumped over 16 per cent last week after its \u2060cloud revenue forecast missed expectations, wiping about US$40-billion off its market value in one day. Its shares were down 4.9 per cent \u200bon Tuesday and more than 41 per cent below 2025\u2019s high.<\/p>\n \u201cArtificial intelligence is increasingly able to perform exactly the sort of programming and knowledge-based services that underpin these business models, so parts of the sector have been under pressure for some time,\u201d said Giuseppe Sersale, fund manager at Anthilia.<\/p>\n U.S. software and cloud computing stocks also fell. Microsoft (MSFT-Q<\/a>) and \u200bOracle (ORCL-N<\/a>) were down 2 per cent and 3 per cent respectively. Salesforce (CRM-N<\/a>), ServiceNow (NOW-N<\/a>) and Photoshop maker Adobe (ADBE-Q<\/a>) all fell over 5 per cent in early trading.<\/p>\n Other professional services firms were also sharply lower. In London, Experian, Sage Group, London Stock Exchange Group and Pearson fell between 4 per cent and 10 per cent. Traders and analysts said fear often outweighed company fundamentals.<\/p>\n Advertising companies were also under pressure. France\u2019s Publicis shares dived over 9 per cent after the company\u2019s results, while U.S.-based Omnicom slumped nearly 6 per cent.<\/p>\n Publicis, the \u2060world\u2019s largest advertising group by market capitalization, said it had earmarked approximately 900 million euros (US$1.06-billion) for acquisitions \u2060in 2026, focusing on AI-powered technologies and data assets.<\/p>\n According to a Barclays survey of buy-side investors published on Monday, advertising agencies are \u200cseen as the most exposed part of European media to artificial intelligence, with WPP, Omnicom and Publicis ranked the top \u201cAI losers\u201d.<\/p>\n Analysts at the bank said companies could most effectively shake off an \u201cAI loser\u201d label by launching and clearly promoting revenue-generating AI products.<\/p>\n Other firms that rely heavily on advertising were also hammered, with Pinterest slipping 4 per cent and Snap falling more than 5 per cent. Ad-dependent Big Tech \u200ccompanies Meta and Alphabet\u2019s Google, however, were down only marginally.<\/p>\n","protected":false},"excerpt":{"rendered":"A selloff in European and North American software, data analytics and advertising stocks deepened on Tuesday after new…\n","protected":false},"author":2,"featured_media":451782,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,901,276,277,888,902,879,877,903,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-451781","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-alberta","tag-artificial-intelligence","tag-artificialintelligence","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/451781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=451781"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/451781\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/451782"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=451781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=451781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=451781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}