AI rattles finance stocks as markets react to disruption fears

AI sparks uncertainty in financial markets, causing sell-offs; leaders see potential, but investor nerves grow amid volatility.

Artificial intelligence is being seen as a growing threat to the financial services sector, with markets reacting fast. Several financial firms suffered sharp share price drops after Anthropic unveiled new AI tools, sparking fears of widespread disruption across data, analytics and market infrastructure.

The selloff quickly spread beyond financial services, hitting software and outsourcing companies as investors questioned the future of jobs and professional roles in an AI-driven economy. The volatility reflects deep uncertainty over how quickly AI could reshape entire industries.

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