Feb 3, 2026 – A sell-off in European software, data analytics, and advertising companies intensified on Tuesday, as updated artificial intelligence models sparked concerns about the viability of incumbent business models. This market movement was reported by Reuters.
Traders and analysts identified the launch of Anthropic’s legal plug-in for its Claude generative AI chatbot as a key catalyst for the downturn. The announcement triggered a decline in shares of both Britain’s RELX and the Netherlands’ Wolters Kluwer, which provide analytics services to the legal industry, with both companies reporting drops exceeding 10%.
“The software companies were assumed to be winners from AI,” remarked Lars Skovgaard, senior investment strategist at Danske Bank. “But all of a sudden, you start to worry about whether you can earn the money back (from your AI investments), and/or will you be outsmarted by updates coming in.”
The share price of RELX has plummeted more than 45% from its peak in February of last year. This dramatic decline is indicative of the broader challenges facing Europe’s software sector amid evolving AI technologies. In a similar vein, Germany’s SAP experienced a downturn of over 16% last week after its cloud revenue forecast fell short of expectations, erasing $40 billion in market value in just one day. The company’s shares continued to slide, down 1.9% on Tuesday and 40% from their high last year.
“We maintain the view that deflationary pressure on software-sector multiples could persist as long as the organic monetisation of AI is not clearly demonstrated,” stated Maximilien Pascaud, an analyst at Baader Bank, in a note where he lowered his target on SAP while maintaining an add rating.
Other firms specializing in professional services also faced declines, with Experian, Sage Group, London Stock Exchange Group, and Pearson all seeing share price drops between 4.2% and 8%.
Advertising companies were similarly affected. Shares of Publicis, the world’s largest advertising group by market capitalization, plunged over 8.5% following the company’s results. Publicis announced plans to allocate approximately 900 million euros ($1.06 billion) for acquisitions in 2026, focusing on AI-powered technologies and data assets.
A survey by Barclays published on Monday revealed that advertising agencies are perceived as the most vulnerable segment of European media to artificial intelligence, with WPP, Omnicom, and Publicis identified as the top “AI losers.”
As the landscape continues to evolve, the pressure on established software and advertising firms is likely to intensify, compelling them to adapt or risk obsolescence in a rapidly changing market. The implications of these shifts will not only affect individual companies but may also reshape investor sentiment across the European tech sector.
For further information, please visit Anthropic, RELX, or SAP.
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