Thomson Reuters shares rally after CoCounsel AI tool draws 1 million users

Core Insights - Thomson Reuters shares surged over 11% following the announcement that its AI tool, CoCounsel, has attracted one million users, alleviating concerns about competition from other AI technologies [1] - This stock increase marked the largest percentage gain for Thomson Reuters since 2009, despite the company still being down more than 30% for the year [1] - The legal AI market is evolving, with Thomson Reuters emphasizing the importance of substance over hype in its AI strategy, which is supported by proprietary intellectual property and extensive legal archives [1] Company Developments - CoCounsel was launched after Thomson Reuters acquired AI legal startup Casetext for $650 million in 2023, positioning it as a core AI engine for automating legal tasks [1] - The Legal Professionals division is the largest revenue contributor for Thomson Reuters, accounting for approximately one-third of total sales [1] - The company’s executives highlighted that its legal offerings are differentiated from general-purpose AI startups due to its unique intellectual property, which includes extensive legal documents that are largely undigitized and unpublished [1] Market Context - The announcement of CoCounsel's user base followed a significant selloff in the software and services sector, triggered by concerns over AI technologies potentially reducing revenue streams [1] - The market reaction to the launch of Anthropic's AI tool, which integrates its Claude AI model into legal workflows, had previously caused an $830 billion global selloff over six trading days [1]