Mumbai: Shares of Indian technology companies fell sharply on Tuesday after a new artificial intelligence tool raised fears about future jobs and business models in the global IT industry.
The selloff followed the launch of new AI plug ins by US startup Anthropic, which allow its Claude system to carry out tasks in areas such as legal work, sales, marketing and data analysis. Investors worry that such tools could reduce the need for large teams of human workers.
India’s IT sector depends heavily on a labour intensive model, where thousands of employees handle coding, testing and support work for global clients. With AI now able to automate many of these tasks, markets fear that revenue growth and hiring could slow down.
The Nifty IT index dropped more than six percent during the session. Major companies such as Infosys, Tata Consultancy Services, Wipro and HCLTech also saw their share prices decline.
The fall in Indian tech stocks was part of a wider global reaction. Software and data service companies in the United States and Europe also came under pressure as investors reassessed how fast AI could change traditional business models.
Market analysts said the concern is not just about short term losses but about long term change. If companies use AI to do routine work, demand for large outsourced teams could fall. This could affect profits and reduce hiring, especially for entry level jobs.
Other sectors in India showed mixed performance, supported by optimism over trade and economic growth. However, technology stocks remained weak as uncertainty over the impact of AI continued to weigh on investor confidence.
The episode shows how quickly new technology can influence financial markets and raises fresh questions about the future of jobs in the global IT services industry.