Why Anthropic-style artificial intelligence is unsettling software markets

Not long ago, artificial intelligence sounded like something distant—an idea discussed in research labs or science fiction novels. Today, it is influencing share prices and hiring plans. To make sense of this moment, we must step away from technical jargon and look at what is really happening, in simple human terms.

First, who or what is Anthropic—in one sentence?

Anthropic is a global artificial intelligence company that builds powerful AI systems which can read, write, analyse, plan, and coordinate work much like a skilled junior professional.
In everyday language, Anthropic’s AI does not merely “answer questions.” It drafts reports, writes software code, checks for errors, summarises long documents, and helps organise work. This single capability explains why software companies, investors, and public institutions are paying attention.

Why did software company shares suddenly fall?

When news spread that AI systems can now perform tasks traditionally done by software engineers—coding, testing, documentation—markets reacted nervously. Shares of Indian IT majors such as Infosys, along with others in the sector, dipped.
This reaction was not because these companies suddenly became unprofitable. It was because investors started asking a basic question: if machines can do part of what thousands of engineers do, will companies need to hire so many people in the future?
Stock markets are forward-looking. They respond to fear and expectation as much as to facts. The recent dip reflected anxiety about what lies ahead, not collapse in the present.

Is the Indian software industry in danger?

The short answer is no. But the longer, more honest answer is that the old growth model is under strain.For decades, Indian IT grew by hiring large numbers of graduates, training them, and billing clients based on the number of people deployed. This model worked because human effort was the main input.AI changes this balance. If one engineer, supported by AI, can do the work that previously required three or four people, clients will naturally ask why they should pay for larger teams. This does not destroy software companies, but it forces them to become leaner, smarter, and more efficient.

Will the bearish mood continue?

We are likely to see volatility rather than a long-term collapse. Some companies will adapt faster than others. Those that quickly integrate AI into their services, focus on outcomes rather than headcount, and help clients manage AI safely will regain confidence. Those that cling to old methods may struggle.This is not unusual. Every major technological shift—from computers to the internet—has caused similar discomfort before stabilising.

What does this mean for jobs and recruitment?

This question matters deeply to families and young people.The reality is uncomfortable but manageable:Bulk hiring of fresh graduates will reduce.Skill requirements will rise.High-quality, adaptable talent will still be in demand.
Over the next few years, annual recruitment across the software sector may fall by 20–30 percent. But this does not mean opportunities vanish. It means easy entry-level roles decline, while more meaningful, higher-skilled roles grow.Software jobs are not disappearing. Low-skill repetition is.
For students, the message is clear: learning fundamentals, problem-solving, and adaptability matters more than ever.

And what about software companies abroad?

The same transition is unfolding globally. In fact, companies in the West face higher salary costs and are even more eager to use AI. Many will shrink internal teams and rely on AI-supported partners. Indian firms can still play a major role—but only as intelligent solution providers, not manpower factories.