Anthropic AI launch wipes $285Bn off global tech & BPO stocks
MUMBAI, INDIA — Shares of business process outsourcing (BPO) firms tumbled following the launch of a new artificial intelligence (AI) tool by Anthropic, intensifying fears that automation could replace traditional human-driven services.
According to a report from Moneycontrol, the selloff reflects growing investor concern that AI is reshaping industries once seen as safe havens for BPO and professional services.
Anthropic’s AI tool triggers global tech decline
The launch of Anthropic’s Claude Cowork AI plugins, including one targeting legal workflows, sent shockwaves through the market, wiping billions off tech valuations worldwide.
Indian markets were hit hard, with eClerx Services shares falling nearly 10% to trade at ₹4,459 (US$50.25), while Info Edge, parent of Naukri.com, slid almost 7% to ₹1,166 (US$12.83). Firstsource Solutions and Hinduja Global Solutions also experienced losses of around 2% each.
“Anthropic launched new capabilities for its Cowork to the legal space, heightening competition,” the report said, citing Morgan Stanley analysts, including Toni Kaplan, who wrote in a note on Thomson Reuters, as reported by Bloomberg.
“We view this as a sign of intensifying competition, and thus a potential negative,” they added.
The selloff is part of a broader global trend, with United States software, legal technology, and financial services stocks also suffering heavy losses.
Analysts have dubbed the event a “SaaSpocalypse,” noting that the launch erased roughly $285 billion from valuations in a single trading session.
Thomson Reuters experienced a decrease of 15%, while RELX lost 14%, and LegalZoom reached a 20% decline. The Nasdaq index dropped 1.4%, which caused Indian IT companies Infosys and Wipro to experience market impacts.
AI automation threatens BPO service models
BPO firms provide non-core business services to their customers, which include customer support, IT, finance, and human resources. Industry experts warn that advanced AI capabilities will replace multiple human job,s which will change both operational timelines and cost structures.
“The significance of platforms now deploying AI-driven systems capable of executing complex SAP migrations and enterprise transformations in weeks—work that previously required years of human-led effort—cannot be overstated,” Bhavik Joshi, Business Head at INVasset PMS, emphasized.
“This is not incremental automation; it represents a fundamental compression of time, cost, and manpower across core enterprise processes,” Joshi added.
The market response occurred unexpectedly as BPO companies now face greater challenges in implementing automated systems. The industry has maintained its growth through outsourcing, yet AI tools such as Claude Cowork demonstrate the importance of developing new business strategies.
BPO firms that embrace hybrid models—integrating AI-driven efficiencies with human expertise—may find new opportunities, even as traditional labor-intensive services face disruption.
