Anthropic's AI legal tool sparks concern among European data services firms
The introduction of a new AI legal tool by US-based company Anthropic has caused a stir in the European market, particularly among publishing and legal software firms. The tool, designed for in-house lawyers, has led to a significant decline in share prices for several European companies.
The UK publishing giant Pearson witnessed a 4% drop in its share price, while the information and analytics firm Relx experienced a more dramatic fall of nearly 11% on the London Stock Exchange. In Amsterdam, the Dutch software company Wolters Kluwer saw its shares plunge by almost 9%.
The impact of AI on data companies was a common concern, as the London Stock Exchange Group and credit reporting firm Experian both saw their stocks decline by over 7%.
Anthropic's tool promises to automate various legal tasks, including contract review, non-disclosure agreement triage, compliance workflows, legal briefings, and templated responses. However, the company emphasizes that it does not provide legal advice. They advise that AI-generated analysis should be reviewed by licensed attorneys before being used for legal decisions.
This development comes as no surprise, given the ongoing debate about AI's potential to disrupt the job market. The UK is already facing a job loss crisis, with more jobs being lost than created as AI tools become more prevalent. A recent study by Morgan Stanley highlights the UK's vulnerability compared to other major economies. Moreover, a survey reveals that over a quarter of UK workers are concerned about the possibility of job displacement within the next five years due to AI.
London Mayor Sadiq Khan has also expressed concern, stating that AI could destroy numerous jobs in the capital. He attributes this to London's heavy reliance on white-collar workers in finance, creative industries, and professional services like law, accounting, consulting, and marketing. These sectors are at the forefront of the AI revolution, raising fears about the future of employment in these fields.
Anthropic, founded in 2021 by Dario Amodei and former staff from OpenAI, has also introduced several open-source tools to automate various professional activities, including sales and customer support. This move further intensifies the debate about AI's role in the future of work, leaving many to wonder how these advancements will shape the job market.
