Anthropic's AI Tool Shakes Up Software Industry
Anthropic's new AI-powered tool for legal work has triggered sharp declines in law and business software stocks. Wall Street analysts suggest the 'build instead of buy' model could fundamentally transform the professional software market, as companies increasingly develop custom solutions using AI assistance rather than purchasing off-the-shelf software.
AI Revolutionizes Legal Sector
The launch of Anthropic's new tool capable of handling complex legal tasks like contract review and drafting has sent shockwaves through the technology and legal worlds. The tool has caused rapid and severe declines in the stocks of legal software companies, while Wall Street analysts emphasize that this development could herald a permanent transformation in the professional software market.
'Build Instead of Buy' Model Gains Momentum
According to Morgan Stanley's latest assessment, Anthropic's move strengthens a new business model where companies can develop custom tools tailored to their needs using AI assistance, rather than purchasing ready-made software solutions. This approach challenges the fundamental economics of the traditional business and legal software market. Analysts predict that AI-powered tools will lower costs while increasing customizability, thereby shifting power dynamics within the industry.
Developer Experience with Claude Code and Planning Mode
Anthropic simultaneously updated its Claude Code command-line tool alongside the legal tool. The most notable feature is the "Planning Mode." In this mode, the model creates a detailed planning document before writing any code, giving developers the opportunity to review it before generation. Tests show that using this mode increases coding accuracy by approximately 20% and boosts performance scores from 3.75 to 4.5.
Agent Definition and Workflow Emphasis
The technical paper titled "Building Effective Agents," published by the company, also clarifies conceptual confusion in the industry. In its paper, Anthropic defines the "Agent" concept with precise language, arguing that many existing implementations are actually "Workflows." The company advocates for relying directly on large language models to complete these workflows, rather than depending on complex third-party frameworks. This distinction highlights a shift toward more efficient and transparent AI application development, potentially reducing technical debt and improving system reliability across enterprise software solutions.
