Daijiworld Media Network - New Delhi
New Delhi, Feb 4: Fresh concerns over the disruptive potential of artificial intelligence sent shockwaves through global technology markets on Wednesday, weighing heavily on Indian IT stocks. The sell-off followed a major announcement by US-based AI firm Anthropic, which unveiled an expanded version of its enterprise AI assistant capable of automating entire business workflows.
The development has reignited investor anxiety over AI replacing large segments of the traditional software and services ecosystem, sparking what market watchers are calling a “SaaSpocalypse” — a broad-based sell-off in software-as-a-service (SaaS) stocks.
According to reports, Anthropic’s upgraded AI platform can independently execute complex tasks such as legal document review, compliance verification, sales forecasting, marketing performance analysis, financial reconciliation, data visualisation, SQL-driven reporting and enterprise-wide document searches. Unlike earlier AI tools that merely assisted employees within existing software, the new system is designed to carry out end-to-end operational processes on its own.
The fallout was felt sharply in Indian markets. US-listed shares of Infosys and Wipro declined significantly, while in domestic trading, Infosys plunged 8.36 per cent intraday and Wipro fell 4.45 per cent.
The weakness extended across global technology and consulting firms. Shares of Accenture and Cognizant dropped close to double digits, while major enterprise software companies including Salesforce, Adobe, DocuSign, Workday and ServiceNow also registered steep losses. Legal and data-centric firms such as LegalZoom and Thomson Reuters were hit hard amid fears that AI-driven automation could disrupt professional services software.
Market participants noted that Anthropic’s automation plugins threaten to consolidate functions that previously required multiple standalone software subscriptions, potentially reducing demand for traditional SaaS platforms.
“India is often seen as an anti-AI trade, but it remains a key software services hub for US companies,” said Vikram Kasat, Head of Advisory at PL Capital. “That said, sentiment around software stocks on Wall Street has turned extremely bearish. Jefferies has even termed the situation a ‘SaaSpocalypse’, reflecting a clear ‘get me out’ mood among investors.”
Highlighting the scale of the sell-off, a basket of US software stocks tracked by Goldman Sachs fell about six per cent in a single session, wiping out nearly $285 billion in market capitalisation, underscoring the growing unease around AI’s impact on the future of the software industry.