00:00Talk us through this new model that was released by Anthropic.
00:03Why did it cause so much disruption yesterday?
00:07Yeah, hi, Germana.
00:08Yeah, I mean, you could argue that Anthropic's having a bit of a deep-seek moment,
00:11if you remember from a year or two back,
00:14really disrupting the AI market with these co-work tools.
00:20It started with the Claude code,
00:23which kind of helped coders to essentially develop their software
00:28quicker and in a more automated way.
00:30Then they kind of transformed that into kind of co-work,
00:32which applies across a whole broad range of productivity tools such as Excel.
00:38And now the latest twist in that is they brought out a specific automation tool
00:45for legal services, and that really disrupted a lot of the big
00:48kind of professional information service names yesterday, like Relics, for example.
00:52But I think that's just kind of sparking broader fears that come to Anthropic
00:56that really focused on business productivity tools.
01:00They're really making traction.
01:01It's really going to accelerate the disruption in existing business models,
01:04and not just traditional non-tech business models, but also new AI models too.
01:10So that's really kind of spooked investors.
01:12Anything that's got the slightest hint of AI to do with it in terms of kind of software
01:16and services is kind of feeling the effects.
01:19And it wasn't just software names yesterday.
01:21We saw a big sell-off, for example, in advertising agencies that have been investing
01:24heavily in AI as the next evolution of their business models, but even they suffered
01:29despite the fact that publicists reported good results.
01:35And I wonder whether, as you say, this is one of those game-changer moments for software
01:40as a service.
01:41And you look at the divergence of performance of that basket versus other parts of the market.
01:48Has the long-term investment thesis into software as a service changed on back of this?
01:54Because quite clearly there's disruptive technology that's coming and really changing the investment
02:00thesis over medium-term horizon.
02:02Yeah, it is.
02:05And I think it's, I guess it's really forcing investors to kind of question again that even
02:10the kind of, the newer businesses like software now, for example, are, you know, kind of potentially
02:17at risk.
02:17And, you know, this is kind of perhaps a bigger and quicker disruption to, you know, how you
02:22develop these businesses, how quickly you can evolve the code, what the right platforms
02:27are to use.
02:28So, yeah, I think, you know, people are perhaps going back to the drawing board a bit.
02:33It's a bit of a kind of sell now, ask questions later, kind of better to kind of retreat and
02:37take risk off and figure the future out before we get stepping back into the market.
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