AI Automation Wave Sweeps the Software Industry, Asian Software Giants Suffer Valuation Blow
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Glonghui, February 4th|Asian software stocks declined as investors worried that the widespread adoption of artificial intelligence could have a disruptive impact on business models. During the Sydney trading session, cloud-based accounting software maker Xero plunged as much as 15%, marking its biggest drop since March 2020. Japanese system integrators Nomura Research Institute and Obic each fell more than 6%. Before the regional stock downturn, U.S. peers saw their share prices fall overnight after Anthropic launched a new AI tool that helps automate some legal work functions. American depositary receipts of Indian IT companies Infosys and Wipro each dropped more than 4%. Ortus Advisors analyst Andrew Jackson stated: "This is particularly concerning for software companies, as AI is highly likely to completely replace traditional, workflow-sticky software-as-a-service products, which could potentially destroy their business models."
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