European software stocks are experiencing sharp declines in today's trading after the emergence of new AI models sparked concerns that established companies will struggle to defend their business models. Reuters reports that the selling pressure has also spread to data analytics and advertising firms, with investors now questioning who the real winners in the AI race will be.

In Sweden, Karnov is tumbling by over 14 percent. The company provides information and workflow solutions, primarily to professionals in law, tax, and accounting.

A key trigger for the negative trend among European software stocks is said to be Anthropic's new legal plug-in for its chatbot Claude.

Two European stocks taking significant hits are Relx and Wolters Kluwer, down by over 13 and 10 percent respectively. Another major company losing ground is SAP, which is down 1.5 percent following a weak cloud forecast.

Advertising agencies are also under pressure in today's trading. One example is Publicis, which is plunging by more than 7.6 percent after its quarterly report.

A Barclays survey cited by the news agency highlights the sector as particularly vulnerable to AI-driven competition.