London: European technology companies that have been early adopters of artificial intelligence are facing a sharp decline in their stock values as powerful new AI models hit the market. Shares of major firms, including SAP, Dassault Systèmes, London Stock Exchange Group (LSEG), Sage, and Capgemini, fell significantly following the launch of OpenAI’s GPT-5 and Anthropic’s Claude for Financial Services.

The release of these advanced models has raised concerns that traditional enterprise software providers and data analytics companies could lose their competitive edge, with AI-driven platforms offering faster, more cost-efficient solutions. While broader European stock indexes such as the FTSE 100 and STOXX 600 remained largely stable, high-valuation AI adopters experienced notable drops amid investor uncertainty.

Market analysts note that investors have been growing cautious, demanding tangible returns from companies that have heavily invested in AI. Earlier this year, financial experts warned that European firms needed to demonstrate clear profitability from AI adoption by 2026 or risk losing market confidence. The sudden leap in AI capabilities has intensified these concerns, putting additional pressure on companies to prove their strategies can withstand global competition.

In the broader tech landscape, the AI arms race is accelerating. Oracle recently struck a deal to integrate Google’s Gemini AI models into its cloud services, highlighting the trend of established technology firms seeking strategic partnerships to keep pace with rapid innovation.

Industry observers believe that while the current sell-off reflects short-term uncertainty, it could also present opportunities for long-term investors willing to back companies that can effectively adapt. The challenge for European AI adopters now is to move beyond integration and demonstrate unique value creation before new AI platforms dominate the market.