PKN Live | Anthropic AI : Asian software and technology stocks witnessed a sharp decline on Wednesday after heavy losses in the U.S. market fueled concerns that artificial intelligence could disrupt traditional business models. Investors across the region reacted nervously to signs that AI-driven automation may reduce demand for conventional software services and weaken future revenue growth.
The selloff followed a difficult trading session on Wall Street, where major software companies faced steep corrections. Market sentiment worsened after AI firm Anthropic introduced new automation features for its Cowork platform, raising fears that advanced AI tools could replace several functions currently handled by software providers and IT service companies.
Anthropic AI : Japanese and Indian IT Stocks Lead the Fall
Japan was among the worst affected markets in Asia. Shares of TIS, a leading Japanese IT services and system integration company, plunged more than 15 percent. Cybersecurity firm Trend Micro dropped over 8 percent, while NS Solutions fell nearly 7 percent. The broad decline reflected growing investor anxiety about how quickly AI could reshape the technology services landscape.
Indian technology stocks also came under intense pressure. The Nifty IT index fell close to 6 percent, erasing recent gains. Major companies such as Tata Consultancy Services, Infosys, and HCL Technologies dropped between 5 and 6 percent. The sudden reversal was notable because Indian IT shares had rallied just a day earlier following news of a trade agreement between India and the United States.
Chinese software companies were not spared either. Kingdee International Software tumbled more than 15 percent, while tech giants Tencent, Alibaba, and Baidu recorded losses between 1 and 3 percent. The broad-based decline highlighted how AI-related concerns are affecting the entire Asian technology ecosystem.
Why Investors Are Worried About Anthropic AI
Market experts believe the current panic stems from uncertainty about how AI will impact the traditional software business. For years, software firms have enjoyed stable revenues through subscription models and long-term contracts. However, AI tools are now capable of automating many tasks that previously required human expertise and expensive software solutions.
Ed Yardeni, president of Yardeni Research, said technology has become far more competitive due to rapid AI advancements. According to him, investors fear that new AI products could reduce pricing power for software companies and make it easier for new competitors to enter the market.
Analysts point out that businesses may shift spending from traditional enterprise software to AI-powered platforms that promise higher efficiency at lower cost. This transition could slow revenue growth for established IT service providers and reduce their profit margins.
Mixed Outlook for the Sector
Despite the pessimism, some experts believe the fears may be exaggerated. Vey-Sern Ling, senior equity advisor at UBP, said the sector could recover if companies prove that AI can boost productivity rather than destroy demand. He suggested that infrastructure software and cybersecurity firms remain attractive because AI could create new opportunities for upgrades and additional services.
In the United States, the impact of these concerns was visible in major tech stocks. ServiceNow fell nearly 7 percent, Salesforce dropped around 7 percent, and Intuit lost almost 11 percent in a single session. These declines dragged the Nasdaq Composite index down by 1.4 percent.
What Lies Ahead
Investors are now closely watching how software companies adapt to the AI revolution. Firms that successfully integrate AI into their offerings and demonstrate clear business benefits may regain market confidence. However, those that fail to innovate could face prolonged pressure.
For now, volatility is expected to continue as markets assess the real impact of AI on global technology spending. The coming quarters will be crucial in determining whether AI becomes a growth driver for the industry or a major disruptive threat.