The end of seat-based era? AI agents rattle tech giants

The software industry has been rocked by a "SaaSpocalypse" following Anthropic’s launch of its Claude Cowork plugins.

This move, which automates complex tasks in legal, sales, and marketing, triggered a massive global sell-off, wiping out roughly $285 billion in market value.

Investors are spooked that these autonomous agents will cannibalise the traditional seat-based subscription models that have long sustained the sector.

Companies like Thomson Reuters, RELX, and Salesforce saw sharp declines as the market reacted to the news. The legal plugin, specifically, rattled firms that rely on billable hours and data analytics.

Barclays analyst Raimo Lenschow previously suggested 2026 would be a pivotal year for AI, but the speed of this disruption has caught many off guard.

The concern isn't just about innovation; it is a fundamental shift in economics. As one analyst noted: “The selloff is not about fear of AI — it’s about what software businesses can realistically charge in an AI-first world.”

While heavyweights like Microsoft and SAP faced pressure, the anxiety is most acute for those whose "moats" now seem shallow against Anthropic's agentic capabilities.

Amidst the chaos, some voices remain sceptical of the panic. NVIDIA's Jensen Huang dismissed the market's reaction, asking: “Would you use a screwdriver or invent a new screwdriver?” Nevertheless, the immediate reality for the FTSE and Nasdaq is a brutal valuation reset.