Anthropic, an Artificial Intelligence startup, has released a new AI-powered development tool that has challenged the stability of an industry giant and highlighted how rapidly AI is reshaping core technology businesses.
On February 23, 2026, shares of International Business Machines (IBM) experienced their steepest single-day drop in more than two decades, tumbling about 13 percent and wiping out over $31 billion in market value.
This marked the worst percentage slide since October 2000, illustrating just how unnerved investors have become by the potential competitive threat posed by advanced AI tools.
The sell-off was triggered by Anthropic’s unveiling of Claude Code, an AI system capable of automating the analysis and modernisation of COBOL, a decades-old programming language that still underpins critical systems in banking, government, and other enterprise environments.
Traditionally, updating COBOL systems required huge teams of consultants and years of manual effort, often generating substantial revenue for companies like IBM. Anthropics claims its AI can now perform much of that complex, time-consuming work in a fraction of the time and cost.
Why this matters
AI disruption is quantifiable, not theoretical. The market reaction shows investors are now pricing AI’s real competitive threat to long-established revenue streams, not just its potential future impact.
The broader industry impact is that other tech and consulting firms with similar business models, such as Accenture and Cognizant, also saw stock declines, revealing how AI tools are raising questions about the profitability of legacy services across the board.
IBM has long relied on its dominance in mainframe computing and legacy systems maintenance, which is a threat to IBM’s legacy business. Anthropic’s AI undercuts that model by suggesting major parts of that work can be automated.
There was a shift in investor sentiment as the sharp sell-off reflects a broader re-evaluation of how enterprise technology companies will sustain growth in an era where AI can automate high-skill, high-value work.
