- Anthropic’s AI plugin has sent investors scurrying from legal-software stocks.
- The maker of the Claude AI chatbot unveiled new tools capable of handling compliance tracking and legal document reviews.
- Investors are proving to be very sensitive to threats posed by AI technologies.
A recent announcement from Anthropic has triggered a significant retreat within the tech sector.
The AI powerhouse has launched a new plugin for its Claude Cowork AI agent, enabling it to carry out various clerical functions, such as compliance tracking and legal document review.
While this update may not have made headlines outside of the legal field when released last Friday, it has incited a sell-off among stocks in software and publishing that are connected to the legal industry.
Here are the major movements registered on Tuesday:
The potential disruption posed by AI was already being contemplated by many on Wall Street as we head into 2026, but the market’s response to Anthropic’s announcement highlights that investors are particularly anxious regarding the threat posed by AI agents.
Claude, among many options available, is recognized by numerous professionals in the legal and financial sectors. High-profile short-seller Andrew Left remarked to Business Insider last year that he has utilized it for research in his pending court case.
Among the three software stocks involved, only LegalZoom operates solely within the legal domain, simplifying tasks for clients with guidance and access to independent attorneys. The British conglomerate RELX possesses the legal data and analytics platform LexisNexis. At the same time, Thomson Reuters has ties to the sector through its ownership of the legal research platform Westlaw.
These stocks have encountered struggles in 2026, registering declines of at least 20% year-to-date. Each began the year with gradual decreases that sharply accelerated following the introduction of Anthropic’s legal plugins.
Investor faith in the legal publishing sector may continue to wane as these advancements evolve. Numerous venture capital firms rushed to fund legal tech startups in 2025, signaling confidence in the capacity of these AI-driven companies to further disrupt the industry.
