AI-driven software stocks have slumped as investors suddenly re-price the risks and disruption posed by legal-focused models like Anthropic's Claude.
But for law firms, this is a reset, not a retreat, in the legal AI market. The money is shifting from "AI at any price" to "AI that can survive the coming copyright and compliance storm"—and that is clearly where serious firms should now be focusing.
What Actually Happened in Markets
The numbers are staggering. On 3 February 2026, a Goldman Sachs basket of US software stocks sank 6% in a single session—its biggest one-day decline since April's tariff-fueled selloff.
A parallel index of financial services firms tumbled almost 7%. The Nasdaq 100 Index fell as much as 2.4%.
The trigger? Anthropic released new AI automation capabilities targeting legal, sales, marketing, and data analytics—sectors previously thought insulated from AI disruption.
The carnage was immediate and global:
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