Core Insights - Anthropic has launched a legal plugin for its Claude Cowork platform, automating various legal tasks such as contract review and compliance workflows, which poses a threat to the traditional billable-hour model in the legal industry [1][2] - The introduction of AI tools in the legal sector is expected to accelerate the decline of hiring new law school graduates, as corporate clients push for alternatives to billable hours [2][3] Industry Impact - The legal technology landscape is rapidly evolving, with startups like Harvey AI and Legora raising significant funding, indicating strong investor interest in automating legal workloads [4] - Anthropic's entry into the legal market has raised concerns among investors, leading to a notable decline in shares of legal data service providers such as Thomson Reuters and RELX, reflecting fears of increased competition [5] Market Reactions - Following the news of Anthropic's legal tool, shares of Thomson Reuters fell approximately 16%, while RELX dropped 14%, indicating market apprehension about the potential disruption in the legal sector [5] - Broader market indices, including the Nasdaq Composite and S&P 500, also experienced declines of 1.4% and 0.8%, respectively, as concerns about the impact on consulting and financial services emerged [5]