Why in the News?
Global technology stocks fell sharply in early February 2026 after Anthropic launched an AI driven workplace automation suite, triggering fears that artificial intelligence could replace traditional software platforms and IT services.
What Triggered the Selloff
- Anthropic launched new workplace automation tools for its AI agent Claude
- Tools can independently perform tasks in legal, sales, marketing, finance and data analysis
- AI agents can now bypass traditional Software as a Service platforms
- Investors feared large scale disruption of the global software and IT services industry
Market Impact
- United States
- S&P 500 fell about 0.8 percent
- Nasdaq Composite declined over 1.4 percent
- Major technology firms like Microsoft, Meta Platforms and Nvidia saw sharp losses
- SaaS firms such as Salesforce and ServiceNow fell significantly
- India
- Nifty IT index dropped nearly 3 percent
- Major IT firms including Infosys, Tata Consultancy Services, HCLTech, Wipro declined sharply
Why Indian IT Is Vulnerable
- Indian IT model depends on service based outsourcing
- AI tools can automate contract review, compliance, customer support and data processing
- Reduced dependence on human intensive IT services threatens revenue streams
Economic Survey Link
- Economic Survey 2025–26 warned about concentration of AI data and compute
- Highlighted risks of technological dependence and loss of comparative advantage
- Called for rapid adaptation to sustain India’s IT competitiveness
| [2020] With the present state of development, Artificial Intelligence can effectively do which of the following?
1. Bring down electricity consumption in industrial units 2. Create meaningful short stories and songs 3. Disease diagnosis 4. Text-to-Speech Conversion 5. Wireless transmission of electrical energy Select the correct answer using the code given below: (a) 1, 2, 3 and 5 only (b) 1, 3 and 4 only (c) 2, 4 and 5 only (d) 1, 2, 3, 4 and 5 |
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