The new Anthropic AI model is causing fear and anxiety among lawyers and law firms in the market. Science, climate and technology news

Anthropic, one of the largest and most influential technology companies in the world, is launching a new model: Cloud Opus 4.6.

Anthropic is lauded as the creator of cloud code.

By now, this will be big news to most techies, as Anthropic is lauded as the creator of cloud code, code-writing. Aye, many engineers say that this tool is completely taking over their work.

However, suddenly, the impact of these tools is being felt more widely, after a small release from Anthropic caused ripples throughout some sections of the stock market.

Earlier this week, Anthropic released a plug-in for its cloud chatbot, adding new tools for legal analysis.

This relatively minor update sent shares of several big legal data firms tumbling. Thomson Reuters, which owns legal database Westlaw, fell nearly 16%. Analytics company RELX fell 12%.

The concept may seem strange to outsiders because Anthropic is still relatively unknown outside the tech world.

A survey by US research firm Blue Rose Research late last year found that less than 5% of the population knew it.

However, analysts note that market participants, impressed by coding advances, are starting to question if they can achieve similar profits in other areas.

James Sim, a partner at London-based equity firm Goodhart, asserts that the market is currently in a state of intense competition.

“It’s just AI trying to find the next loser. That’s what you’ve seen in the last few days.”

Anthropic’s latest release may heighten this sense of urgency, as it is aimed directly at knowledge workers.

As well as several improvements in coding – for example, the ability to handle larger codebases and longer tasks – the new model is designed to tackle the problems faced by non-coders in apps such as Excel and PowerPoint, where the cloud will now be able to work directly on the cloud.

“Users can create slides from a corporate template, restructure storylines, turn bullets into diagrams, or create entire decks from descriptions – all without leaving the app,” the firm says, although they will have to pay for the privilege.

It says it is “our most efficient model for all enterprise and knowledge work”.

Anthropic says its new model outperforms its older model on several key benchmarks, pointing to an assessment by Norway’s Sovereign Investment, which found that “in 40 cybersecurity tests, Cloud Opus 4.6 delivered the best results 38 times out of 40 in a blind ranking versus the Cloud 4.5 model.”

Read more from Sky News:
Man convicted of murder for stabbing nine-year-old boy in heart
Even Starmer’s allies are uncertain about his future

But the company is downplaying the impact of its knowledge work tools, directing people towards statements made by legitimate software-makers who create specialist tools using cloud code.

“There is a significant difference between operating a plugin and a collaborative, case-focused, production-grade platform used by hundreds of the world’s leading legal teams,” says Max Junstrand, CEO of Legora, an AI tool for lawyers.

Sim of Goodhart says the market is not seeing things in such a nuanced way, suggesting this could be the “canary in the coal mine” for the end of the excitement around AI.

When considering the evolution of bubbles in history, it’s common to observe a pattern where fewer and fewer companies emerge as winners. That’s clearly what’s happening at the moment.

“This may be part of that general pattern where you’re seeing the market decide that, in reality, it will only be a very narrow group of people who will win. And of course, the step after that is the whole bubble bursting. And that’s what we could see.”