US AI startup Anthropic has launched Claude Cowork, a suite of AI agents capable of performing complex business tasks end-to-end. These agents can handle everything from legal document review and data analysis to sales, marketing, and administrative workflows using smart plugins. By automating tasks that once required human expertise and specialised software, Claude Cowork represents a significant leap in AI capabilities.
The launch has triggered widespread investor concern over the future of traditional Software-as-a-Service (SaaS) and IT services, a phenomenon quickly dubbed the “SaaSapocalypse.” Analysts warn that companies might increasingly rely on AI agents to replace both software subscriptions and human-driven services, potentially disrupting the revenue streams of major IT firms.
Global software stocks reacted sharply, with shares of leading firms dropping after the announcement. In India, the impact was immediate: IT giants including TCS, Infosys, Wipro, HCLTech, and LTIMindtree saw steep declines in their stock prices. The NIFTY IT index fell by 6–7%, marking one of its most significant losses in recent years.
Industry watchers believe Indian IT companies will need to pivot quickly to high-value, specialised services, such as strategic advisory, system integration, and complex consulting, areas where AI is less likely to replace human expertise in the near term. Rapid internal adoption of AI tools may also be crucial for these companies to maintain competitiveness in a rapidly evolving landscape.
Experts suggest that the fear is well-founded. As AI agents increasingly handle tasks previously done by humans, demand for labour-intensive IT services could shrink. Traditional SaaS pricing models, which rely on recurring subscriptions and human headcount, may face pressure or risk obsolescence. The disruption is not only technological but also financial, with investors adjusting their outlooks for global and Indian software markets.
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