Why is Anthropic’s new tool, which tanked software stocks on Tuesday, so powerful?

```

A routine update in the field of artificial intelligence has triggered a sharp shock in the legal software sector.

Anthropic’s release last Friday of its Claude Cowork AI agent's legal plugin sparked a collective plunge in related stocks on Tuesday, with several shares dropping more than 15%.

The developer of the Claude AI chatbot introduced a new tool capable of handling various paperwork tasks, including tracking compliance issues and reviewing legal documents. Although this update did not attract much attention outside the legal industry, it sparked a sell-off in software and publishing stocks related to the legal sector on Tuesday.

The stocks that tumbled on Tuesday include: Wolters Kluwer from the Netherlands, down 13%; RELX Group from the UK, down 14%; LegalZoom.com plummeting nearly 20%; and Thomson Reuters dropping 15%. All of these stocks have accumulated declines of at least 20% so far in 2026, with the gradual fall since the start of the year sharply accelerating after the release of Anthropic's legal plugin.

(LegalZoom.com plummeted nearly 20%)

Analysts believe that although the disruptive threat of AI has already been included in Wall Street's outlook for 2026, investors remain highly vigilant about the impact of AI agents.

Claude’s Market Position in Professional Fields

In the fiercely competitive AI market, Claude has become the preferred tool for numerous legal and financial professionals conducting analytical work.

According to Business Insider, well-known short seller Andrew Left said last year that he used the tool in research for upcoming litigation cases.

This recognition in professional fields means that the legal-related features released by Anthropic pose a more direct threat to existing legal software vendors.

Of the affected stocks, only LegalZoom specializes in the legal industry, helping customers streamline tasks by providing guides and independent attorney services.

UK IT group RELX entered the legal field through its legal data and analytics platform LexisNexis. Thomson Reuters’ legal business comes from its ownership of the legal research platform Westlaw. Wolters Kluwer of the Netherlands also has operations in legal information services.

Analysts believe that with the continued advancement of AI technology, investor confidence in the legal publishing industry may be further damaged.

Reports indicate that in 2025, numerous venture capital firms competed to invest in legal tech startups, demonstrating the capital market’s confidence that these AI-centric companies will further disrupt the traditional legal industry.

Risk Warning and DisclaimerThe market involves risk; investments should be made cautiously. This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial circumstances, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific situation. Investing accordingly is at your own risk. ```