Artificial intelligence has been a major factor in the rise of markets, but it is now being viewed with skepticism.
Early in February 2026, global markets saw a dramatic sell-off as the narrative changed from AI as a “savior” into “AI as an disruptor.”
The main factors that caused this volatility were two: the massive increase in capital spending by tech giants, which has not yet shown a proportional return on investment; and the introduction of AI agents with high-level specializations capable of automating professional tasks.
Investors no longer ask who is going to build AI but who they will “cannibalize” with it.
The three most vulnerable sectors are listed below.
Software for Enterprise
For years, the Software-as-a-Service (SaaS) model was the gold standard of steady, recurring revenue.
Wall Street has dubbed the “SaaSpocalypse” the rise of AI autonomous agents, such as the recently updated Claude Cowork.
Investors are worried that firms will use AI instead of expensive licenses for HR or CRM tools. They may also automate workflows or build their own custom solutions.
This anxiety has been felt by Salesforce (NYSE CRM), a bellwether of the industry for many years.
The stock dropped over 15% within a week after reports emerged that major enterprises had halted seat count expansions and instead were opting to test Anthropic’s “AI-powered” automation tools, which reduce the requirement for software operators.
Commercial real estate services
Real estate, and in particular firms that specialize in commercial leasing or property management have entered a time of great uncertainty.
AI-based automation is a concern for two reasons: it could result in white-collar job losses, reducing demand for office spaces; and AI-driven tools will automate the “information asymmetry,” which real estate agents rely upon to earn fees.
CBRE Group’s (NYSE: CBRE), the largest firm in commercial real estate, saw its share price plummet 12% after markets realized AI could now perform complex market analyses and lease evaluations with 95% accuracy.
The “high fee” structures of the traditional real estate giants have become increasingly vulnerable as investors move away from labour-intensive models.
Information and Data Services Professionals
Legal, accounting and tax services are among the most recent sectors to fall victim to the AI-related fear-mongering.
Companies like Thomson Reuters, RELX and others were known as “AI leaders” for years because they controlled the data that was used to create the AI models.
A new wave of vibration coding, and the emergence of specialized artificial intelligence legal agents have shown that proprietary databases’ moat may be shrinking.
Thomson Reuters’ (NASDAQ: TRI), a company that provides premium subscription services, fell by over 26 percent recently after analysts questioned AI’s ability to synthesize and draft case law at a fraction the price.
Markets are betting on the fact that data companies will see their bottom lines improve much sooner than they expected.
The following post: AI Sell-off: Three sectors that it hit hardest and why could be updated as new developments unfold
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